The United Nations Food and Agriculture Organization (FAO) said global food prices rose in August to their highest level since late 2022, heightening concerns over supplies of staple commodities.<\/p>\n
According to the report, published on Friday, adverse weather and disruptions caused by the war in the Black Sea were among the main drivers of the increase. The organization said extreme heat and drought in Europe, the risk of a stronger El Nino event, and trade turmoil caused by the wars in Ukraine and Iran have all put pressure on agricultural markets.<\/p>\n
The FAO Food Price Index, which tracks monthly changes in a basket of food commodities traded on global markets, rose to 133.3 points in August, up from 130.8 in July.<\/p>\n
Even so, the index remains nearly 17% below its historic peak in March 2022, when global food markets were shocked after Russia’s full-scale invasion of Ukraine.<\/p>\n
Maximo Torero, FAO’s chief economist, said the rise in global food prices in August was a warning that the “risk premium” is returning to food markets. He added that climate shocks, geopolitical tensions and disruptions to trade flows were all affecting expectations of tighter supply.<\/p>\n
The agency said that in August, price indices for cereals, vegetable oils, sugar, meat and dairy products all increased. Severe weather conditions in Europe weakened the outlook for corn and sugar beet harvests and affected livestock production.<\/p>\n
According to the FAO, concerns about the possible impact of El Nino on palm oil and sugar production in Asia also added to market pressure. At the same time, intensified attacks in the Black Sea limited grain shipments from Russia and Ukraine, while tensions between the United States and Iran affected the transport of agricultural fertilizers.<\/p>\n
Among food groups, the cereal price index rose 2.2% from the previous month to its highest level since May 2024. The vegetable oil index also climbed 0.6% to its highest level since June 2022.<\/p>\n
The sugar price index jumped 11.9% to its highest level since June 2025. The FAO said the increase was due to lower production in Brazil’s key central-southern region, along with weather concerns in Europe and Asia.<\/p>\n
In a separate report, the organization also cut its forecast for global cereal production in 2026 by 3.4 million tonnes to 2.980 billion tonnes. The figure is now 2% lower than in 2025 and represents the largest annual decline since 2018.<\/p>\n
Despite the reduction, forecast production is still expected to be the second-highest level on record. The FAO also lowered its forecast for global cereal stocks at the end of the 2026\/2027 season by 1.1% to 947.2 million tonnes, a figure only slightly above the previous season.<\/p>\n
The United Nations Food and Agriculture Organization is one of the UN’s specialized agencies in food security and agriculture, and its food price index is considered one of the most important indicators for tracking trends in the global food market.<\/p>\n","protected":false},"excerpt":{"rendered":"
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