Published by Global Banking & Finance Review®
Posted on February 6, 2026
2 min readLast updated: February 6, 2026
Add as preferred source on GoogleWorld food prices fell in January, led by dairy, sugar, and meat declines. FAO forecasts record cereal production by 2025.
PARIS, Feb 6 (Reuters) - World food prices fell for a fifth straight month in January, led by declines in dairy, sugar and meat products, the United Nations' Food and Agriculture Organization said on Friday.
The FAO's food price index, which tracks monthly changes in a basket of internationally traded food commodities, averaged 123.9 points in January, down 0.4% from December and 0.6% from a year earlier, the agency said.
The index was 22.7% below its peak struck in March 2022 after Russia's full-scale invasion of Ukraine.
Dairy prices showed the largest drop among the main product groups, down 5% month on month, driven by lower cheese and butter prices.
Meat prices slipped 0.4% as lower pig meat prices outweighed increases in poultry prices.
Sugar prices fell 1% from December and were 19.2% lower than a year earlier, reflecting expectations of increased supplies.
Cereals and vegetable oils rose last month, however.
FAO's cereal index edged up by 0.2% as stronger rice prices linked to firmer demand offset slightly weaker quotations for other major cereals.
The vegetable oil index climbed 2.1% as higher palm, soy and sunflower oil prices outweighed lower rapeseed oil quotations.
In a separate report, the FAO raised its estimate on 2025 global cereal production to a record 3.023 billion metric tons, citing higher wheat yields and improved maize prospects.
It also said world cereal stocks were set to expand in the 2025/26 season, lifting the global stocks-to-use ratio to 31.8%, its highest since 2001.
(Reporting by Gus TrompizEditing by David Goodman)
The FAO, or Food and Agriculture Organization, is a specialized agency of the United Nations that leads international efforts to defeat hunger and improve nutrition and food security.
A food price index is a measure that tracks the prices of a basket of food commodities over time, providing insights into trends in food prices globally.
Cereals are grasses cultivated for the edible components of their grain, which is a major source of food for humans and livestock, including wheat, rice, and corn.
Dairy prices reflect the market value of milk and milk products, which are essential sources of nutrition and have significant economic implications for farmers and consumers.
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