Global food prices climbed 2.4% in March to reach their highest level since September, driven primarily by rising energy costs from the ongoing Middle East conflict, the UN Food and Agriculture Organization reported Friday.
The FAO Food Price Index now sits 1% above year-ago levels, though it remains nearly 20% below the March 2022 peak reached after Russia's invasion of Ukraine.
Price rises since the conflict began have been modest, driven mainly by higher oil prices and cushioned by ample global cereal supplies
Maximo Torero, FAO Chief Economist — Daily Sabah
The organization warns of more significant disruptions ahead if the conflict extends beyond 40 days and input costs remain elevated.
Those choices will hit future yields and shape our food supply and commodity prices for the rest of this year and all of the next
Maximo Torero, FAO Chief Economist — Al-Monitor
Wheat prices surged 4.3% as crop prospects deteriorated in the United States while Australian farmers signal reduced plantings due to fertilizer cost pressures. The cereal price index overall gained 1.5% month-over-month.
Vegetable oil markets experienced their third consecutive monthly increase, rising 5.1%. Palm oil reached its highest level since mid-2022 as energy price increases boosted biofuel demand expectations across palm, soy, sunflower and rapeseed oils.
Sugar prices jumped 7.2% to their highest since October 2025. Brazil, the world's largest sugar exporter, is expected to divert more sugarcane toward ethanol production as crude oil prices climb.
Rice bucked the upward trend, falling 3% due to harvest timing and weaker import demand. Maize prices edged higher despite ample global supplies, supported by ethanol demand linked to energy market dynamics.
Meat prices rose 1%, led by higher pig prices in the European Union and cattle prices in Brazil, while poultry costs declined slightly.
The FAO separately raised its 2025 global cereal production forecast to a record 3.036 billion metric tons, representing 5.8% year-over-year growth.
The critical threshold now centers on conflict duration and its impact on farmer decision-making for the upcoming planting season.