Global Food Prices Hit Highest Level Since 2022—FAO

By Adedapo Adesanya

World food prices rose in August to their highest since late 2022, the United Nations’ Food and Agriculture Organisation (FAO) said on Friday.

According to FAO, extreme heat and drought in Europe, the threat of a severe El Niño weather pattern and trade upheaval caused by the Ukraine and Iran wars have unsettled agricultural markets, pushing grain prices to three-year highs and sugar to a one-year peak.

The FAO Food Price Index, which tracks monthly changes in a basket of internationally traded food commodities, averaged 133.3 points in August, up from July’s revised reading of 130.8.

That was the highest score since November 2022, though nearly 17 per cent below a record peak from March 2022, after Russia’s full-scale invasion of Ukraine.

“August’s increase in global food prices is a warning that the risk premium is returning to food markets: climate shocks, geopolitical tensions and disrupted trade logistics are converging to tighten supply expectations,” FAO Chief Economist Maximo Torero said in a statement.

The FAO’s price benchmarks for cereals, vegetable oils, sugar, meat and dairy all rose in August.

The FAO Cereal Price Index averaged 116.3 points in August, up 2.5 points (2.2 per cent) from July and marking its highest level since May 2024. International cereal prices increased across all major grains in August, supported by robust demand, weather-related concerns over crop prospects in key producing regions, and continued uncertainty surrounding Black Sea export flows.

The FAO Dairy Price Index averaged 119.2 points in August, up 2.7 points (2.3 per cent) from July, marking its first increase in four months, while it remained 21.7 per cent below its level a year earlier.

The increase was driven by higher milk powder and cheese prices, while butter quotations…