World food prices are breaking records: what is happening to oil and meat
10 August 2025 05:12
Global food prices rose in July 2025. The increase occurred amid rising prices for meat and vegetable oils, despite lower prices for cereals, dairy products, and sugar.
This is reported by RBC-Ukraine with reference to the UN Food Agency (FAO), "Komersant Ukrainian" reports.
The FAO food price index in July 2025 was 130.1 points, which is 1.6% higher than in June.
Compared to July 2024, the index increased by 7.6%, but remains 18.8% below its peak in March 2022 after Russia’s invasion of Ukraine.
Vegetable oils have updated a three-year high
The price index for vegetable oils rose to 166.8 points, up 7.1% for the month and the highest since 2022. The growth was driven by rising prices for palm, soybean and sunflower oils. Palm oil has risen in price for the second month in a row amid strong global demand and favorable prices compared to other oils.
Sunflower oil also rose in price due to a seasonal decline in supply in the Black Sea region.
Dairy products are losing in price, except for cheese
The price index for dairy products in July amounted to 155.3 points – a decrease of 0.1% for the month, but an increase of 21.5% in annual comparison. This is the first monthly decline since April 2024. Butter and milk powder prices fell, but rising cheese prices partially offset the overall decline.
Butter prices fell by 1.1%. At the same time, prices in the EU remain high due to a limited supply of cream and strong demand. At the same time, cheese prices are rising due to strong demand in Asia and the Middle East.
Meat prices rise: a new record is set
In July, the meat price index amounted to 127.3 points, an increase of 1.2% for the month and 6% compared to last year. This is a new record high.
Beef prices reached a historic high, driven by strong demand from China and the US. Poultry prices went up slightly. Pork prices, on the other hand, fell due to oversupply in the EU and weak external demand.
Sugar continues to fall in price
In July, the sugar price index was 103.3 points, down 0.2% month-on-month and 13.5% compared to July last year. This is the fifth consecutive month of decline. The reason was the expectation of increased sugar production in India and Thailand, as well as favorable weather conditions in the southern regions of Brazil.
However, signs of a recovery in global demand for sugar imports restrained further price declines.
Cereals fall in price, except for barley and corn
The grain price index was 106.5 points, down 0.8% month-on-month and 3.8% year-on-year. Global barley and corn prices rose, while wheat and sorghum prices fell.
The arrival of winter wheat from the northern hemisphere weighed on prices, but weak spring wheat harvests in North America and low sales volumes from farmers in Europe and the Black Sea region limited the decline.
Corn prices were also supported by weak farmer sales and dry conditions in Eastern Europe and Ukraine. In addition, export restrictions in Argentina and rising domestic demand in Brazil limited supply.
Prices in Ukraine
According to the State Statistics Service, in June 2025, compared to June last year, average prices for food and non-alcoholic beverages in Ukraine increased by 23.2%.
Sunflower oil went up by 37.2% to UAH 80.6 per liter, chicken fillet by 35.8% to UAH 214.6 per kilogram, and a 200 gram pack of butter went up by 34.3% to UAH 107.4.
