World food prices rise for third consecutive month amid Hormuz crisis, high energy costs

World food prices rose for a third consecutive month in April, driven mainly by higher vegetable oil prices and increases in cereal and rice quotations amid elevated energy costs, the UN Food and Agriculture Organization (FAO) said Friday. "The benchmark of world food commodity prices rose in April for a third consecutive month amid elevated energy costs and disruptions caused by the conflict in the Near East," the agency said.

Price index details

The FAO Food Price Index averaged 130.7 points in April, up 1.6% from its revised March level and 2% higher than a year earlier. The FAO Vegetable Oil Price Index rose 5.9% from March to its highest level since July 2022, supported by higher prices of palm, soy, sunflower, and rapeseed oils.

Cereal and rice prices

The FAO Cereal Price Index rose 0.8% month-on-month, reflecting higher wheat and maize prices, while the All Rice Price Index increased 1.9% as crude oil and derivative prices increased production and marketing costs in rice-exporting countries. The FAO Meat Price Index reached a new record high in April, rising 1.2% from March and 6.4% year-on-year.

Dairy and sugar decline

By contrast, the Dairy Price Index fell 1.1% from March, while the Sugar Price Index dropped 4.7%, pressured by expectations of ample global supplies.

Production forecasts

FAO also raised its 2025 global cereal production forecast to 3.04 billion tons, up 6% from the previous year, while revising its 2026 wheat output forecast slightly lower to 817 million tons. FAO Chief Economist Maximo Torero said global agrifood systems continued to show resilience despite disruptions linked to the Strait of Hormuz crisis.