The FAO Food Price Index (FPI) decreased by 1.6%, or 2.1 points, to 124.9 points in January 2025. This is 6.3% (or 7.3 points) higher than in January 2024, but 22% (or 35.3 points) lower than its peak in March 2022. Given market developments, increases in dairy and cereal prices were unable to offset significant declines in sugar, meat and oils.

The cereal price index increased by 0.3% (0.3 points) in January 2025 to 111.7 points. However, this indicator is 6.9% (8.2 points) lower than the level of January 2024. Wheat prices decreased due to weak import demand, although they were supported by reduced supply from Russia and the uneven state of crops in the EU and the US. However, corn prices increased and exceeded the level of the previous season for the first time in two years, which is explained by the seasonal reduction in supply, poor weather conditions in Argentina and delayed sowing in Brazil.

The vegetable oil market also experienced a decline. The vegetable oil price index decreased by 5.6% (9.1 points) to 153 points, although this indicator is 24.9% higher than the level of January 2024. The prices of palm and rapeseed oil decreased the most, while the prices of soybean and sunflower oil remained stable.

Meat prices also fell in January: The meat price index fell by 1.4% (1.7 points) to 117.7 points, up 8.1% (8.9 points) from January 2024. Demand for meat fell after the New Year holidays, and an outbreak of foot-and-mouth disease in Germany led to restrictions on meat imports by some EU countries, leading to a surplus of pork on the market.

Dairy prices continue to rise: The dairy price index rose by 2.4% (3.3 points) to 142.9 points. Cheese prices rose by 7.6%, but butter prices fell, despite increased demand. At the same time, milk prices, both whole and dry, fell due to the recovery in EU production and low import demand.

The sugar price index fell by 6.8% (8.1 points) to 111.2 points, down 18.5% (25.2 points) from its January 2024 level. This is the lowest level since October 2022, driven by forecasts of a good sugarcane harvest in Brazil and India’s permission to resume sugar exports, which were restricted in October 2023.

Overall, the decline in the FAO Food Price Index reflects changes in the global food market, with some food categories falling and others rising, triggering mixed reactions among producers and consumers.