Global food prices surge in July 2025
Photo: Food prices are rising (Vitalii Nosach, RBC-Ukraine)
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, according to the UN Food and Agriculture Organization (FAO).
The FAO Food Price Index stood at 130.1 points in July 2025, 1.6% higher than in June.
Compared to July 2024, the index rose by 7.6%, but remains 18.8% below its peak reached in March 2022 after Russia invaded Ukraine.
Vegetable oils hit three-year high
The vegetable oil price index rose to 166.8 points, up 7.1% for the month and the highest since 2022. The increase was driven by higher prices for palm, soybean, and sunflower oils. Palm oil has been rising in price for the second month in a row amid high global demand and favorable prices compared to other oils.
Sunflower oil also rose in price due to a seasonal reduction in supply in the Black Sea region.
Dairy products are losing value, except for cheese
The dairy price index in July was 155.3 points, down 0.1% for the month but up 21.5% year-on-year. This is the first monthly decline since April 2024. Prices for butter and milk powder fell, but the rise in 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 limited cream supply and strong demand. Meanwhile, cheese prices are rising thanks to steady demand in Asia and the Middle East.
Meat prices rise, new record set
The meat price index in July was 127.3 points, up 1.2% for the month and 6% compared to last year. This is a new record high.
Beef prices reached an all-time high, driven by strong demand from China and the US. Poultry prices rose slightly. Pork prices, on the other hand, fell due to oversupply in the EU and weak external demand.
Sugar continues to fall in price
The sugar price index in July was 103.3 points, down 0.2% for the month and 13.5% compared to July last year. This is the fifth consecutive month of decline. The reason for this was expectations 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 prevented further price declines.
Grain prices falling, except for barley and corn
The grain price index was 106.5 points, down 0.8% for the month and 3.8% year-on-year. Global prices for barley and corn rose, while those for wheat and sorghum fell.
The arrival of winter wheat from the northern hemisphere is putting pressure on prices, but poor spring wheat harvests in North America and low sales by farmers in Europe and the Black Sea region have 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 rose in price by 37.2% over the year to 80.6 hryvnia per liter, chicken fillet by 35.8% to UAH 214.6 per kilogram, and a 200-gram pack of oil by 34.3% to UAH 107.4.
