Global food prices rise in February: UN Report

After five consecutive months of decline, global food prices rose in February, driven by higher costs for wheat, vegetable oils, and meat, according to a report released Friday by the United Nations Food and Agriculture Organization (FAO).

The FAO noted that the February data reflects market conditions prior to the recent Middle East crisis. However, ongoing conflicts are disrupting shipping routes and fuel supplies, which could add new pressures on food prices in the coming months.

FAO’s Food Price Index rose 0.9 per cent in February compared to January. Vegetable oil prices reached their highest level since June 2022, as demand outpaced production. Soybean oil saw significant gains, while US biofuel policies pushed prices further upward, though increased sunflower oil exports from Argentina helped moderate costs.

Wheat prices rose 1.1 per cent month-on-month due to extreme cold in Europe and the US, coupled with supply challenges in Russia and the Black Sea region. Basmati rice prices also increased 0.4 per cent, reflecting strong international demand.

Meat prices climbed 0.8 per cent in February, with mutton reaching record highs. Rising demand in China and the US also lifted beef prices, while poultry prices saw modest gains. Conversely, dairy prices fell 1.2 per cent, and sugar prices dropped 4.1 per cent compared to January.

In a separate FAO report, the organization highlighted that 41 countries currently require food assistance, most of them in Africa, due to conflict, insecurity, and natural disasters.

Additionally, global cereal production in 2025–26 is projected to decline by nearly 1 per cent in 44 low-income countries, raising further concerns about food security.