FAO Chief Economist Máximo Torero noted that rising energy costs are pushing up vegetable oil prices, fueling demand for biofuels derived from organic materials, such as oil-rich crops.
He also mentioned that despite disruptions caused by war, agricultural systems demonstrated resilience, with cereal prices only experiencing moderate increases due to sufficient supplies from earlier harvests.
The FAO Food Price Index, which tracks changes in a selection of globally traded food items, increased for the third month in a row in April, averaging 130.7 points, a 1.6% rise from the adjusted March figure and the highest since February 2023.
The index peaked at 160.2 in March 2022 following the onset of the Ukraine conflict.
In April, the vegetable oil price index from the FAO jumped 5.9% month-over-month, reaching its highest level since July 2022 due to rising prices of soy, sunflower, rapeseed, and palm oils, with the latter notably supported by biofuels policy incentives.
Looking ahead, the UN agency noted expectations for decreased wheat plantings in 2026, as farmers are opting for crops that require less fertilizer in response to soaring input costs.
Additionally, meat prices in April rose by 1.2% month-over-month, achieving a record high due to limited availability of slaughter-ready cattle in Brazil, while sugar prices fell by 4.7% because of anticipated ample supply from Brazil, China, and Thailand.
In a separate report, the FAO slightly adjusted its estimate for global cereal production in 2025 upwards to a historic 3.040 billion metric tonnes, 6% higher than the previous year’s levels.
