Global food prices dipped in May owing to a fall in prices of maize and palm oil in the international markets, according to a new report by the Food and Agriculture Organisation (FAO).
The report noted that the fall in prices for maize and palm oil outweighed historically high prices of butter and bovine meat in the same period, leading the Food Price Index to an average of 127.7 points in May 2025, down 0.8 percent from April.
“The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally traded food commodities, averaged 127.7 points in May, down 0.8 percent from April but remained 6.0 percent higher than a year earlier,” the report stated.
According to the report, cereal prices declined during the review period to 109 points, down 1.8 percent from April 2025 and 8.2 percent below their level in May 2024.
It explained that global maize prices declined sharply during the month, due to firm competition and increasing seasonal availability from ongoing harvests in Argentina and Brazil.
Linking the sharp drop to the 2025 maize harvest in the United States of America, the report revealed that world prices of sorghum and barley also dropped.
Similarly, vegetable oil, which was also a driver of the global food price decline in May, averaged 152.2 points, down 3.7 percent from April’s level. However, it was 19 percent higher than its level a year ago.
“The continued decline reflected lower quotations for palm, rapeseed, soy and sunflower oils. International palm oil prices declined markedly for the second consecutive month, maintaining a discount over competing oils since mid-April,” the report noted.
But while prices of maize and palm oil dropped in the period, meat and dairy prices rose by 125 points and 154 points, respectively.
The value recorded in dairy prices was 0.8 percent higher compared to April and 21.5 percent higher than its value a year ago, the FAO said. While meat prices were up 1.3 percent from the revised April value and 6.8 percent above its level a year ago.
The FAO highlighted that the increase in meat prices was driven by higher international prices for bovine, ovine and pig meats, which more than offset a decline in poultry meat quotations.
“Ovine meat prices rose, driven by higher quotations in Oceania supported by strong global import demand, particularly from China, the Middle East and Europe,” the report added.
Also, the price increase in dairy was driven by international butter prices sustained by strong demand from Asia and the Middle East amid tightening milk supplies in Australia.
The FAO explained that: “A slowdown in demand for butter of European Union origin limited further price increases.”
