Global Food Prices Rise For 3rd Straight Month Amid Hormuz Disruptions

ISTANBUL, May 8 (Bernama-Anadolu) -- World food prices rose for a third consecutive month in April, driven mainly by higher vegetable oil prices and increases in cereal and rice quotations amid elevated energy costs, the UN Food and Agriculture Organisation (FAO) said Friday.

"The benchmark of world food commodity prices rose in April for a third consecutive month amid elevated energy costs and disruptions caused by the conflict in the Near East," Anadolu Ajasi quoting the agency said in a statement.

The FAO Food Price Index averaged 130.7 points in April, up 1.6 per cent from its revised March level and 2 per cent higher than a year earlier.

The FAO Vegetable Oil Price Index rose 5.9 per cent from March to its highest level since July 2022, supported by higher prices of palm, soy, sunflower, and rapeseed oils.

FAO Chief Economist Maximo Torero said global agrifood systems continued to show resilience despite disruptions linked to the Strait of Hormuz crisis, while vegetable oils faced stronger price increases due largely to higher oil prices and stronger biofuel demand.

The FAO Cereal Price Index rose 0.8 per cent month-on-month, reflecting higher wheat and maize prices, while the All Rice Price Index increased 1.9 per cent as crude oil and derivative prices increased production and marketing costs in rice-exporting countries.

The FAO Meat Price Index reached a new record high in April, rising 1.2 per cent from March and 6.4 per cent year-on-year, led by higher bovine meat prices.

By contrast, the Dairy Price Index fell 1.1 per cent from March, while the Sugar Price Index dropped 4.7 per cent, pressured by expectations of ample global supplies.

FAO also raised its 2025 global cereal production forecast to 3.04 billion tons, up 6 per cent from the previous year, while revising its 2026 wheat output forecast slightly lower to 817 million tonnes.

-- BERNAMA-ANADOLU