The UN Food and Agriculture Organization (FAO) reported a continued increase in global food prices for the second consecutive month, with its Food Price Index reaching 128 points in June 2025. This rise was driven by higher prices for meat, dairy, and vegetable oils, despite declines in grains and sugar.
اضافة اعلان
Key Highlights from the June 2025 Report:
Grains:
The cereal price index dropped to 107.4 points, down 1.5% from May, mainly due to lower corn prices from strong supply in Brazil and Argentina.
However, wheat prices saw a slight uptick despite the harvest season starting in the northern hemisphere.
Vegetable Oils:
Prices jumped by 2.3%, led by increases in palm oil, soybean oil, and canola.
These oils are crucial to both industrial and household consumption in the Middle East and North Africa (MENA) region.
Meat:
The global meat index hit a record 126 points, with red meat prices rising sharply due to reduced exports from Brazil and increased U.S. demand.
Poultry prices dipped temporarily due to avian flu concerns in Brazil but began recovering by late June.
Sugar:
A notable 5.2% decline brought sugar prices to their lowest level since April 2021, offering some relief for import-reliant countries like Morocco, Egypt, and Jordan.
Dairy Products:
Overall prices rose 0.5%, but butter prices surged 2.8%, reaching a new high due to reduced production in New Zealand and Europe, impacted by environmental regulations and bluetongue virus outbreaks.
Impact on Arab Countries
For nations with high food import dependency—such as Jordan, Egypt, Lebanon, and the Gulf states—these price increases add to existing inflationary pressures, especially in light of:
Weakened local currencies,
Volatile shipping costs, and
Geopolitical disruptions in supply chains.
While declines in sugar and corn are welcome, the sharp rises in meat, dairy, and vegetable oils—staples in many Arab diets—are likely to strain household budgets further.
The FAO notes that global supply prospects for grains remain favorable, but market volatility persists due to climate uncertainty, trade dynamics, and rising industrial demand, particularly from bioenergy sectors.
Outlook
Despite abundant global stocks for key crops like wheat and rice, price relief may not reach consumers in the MENA region soon due to import bottlenecks, currency devaluation, and regional food insecurity. The FAO urges continued monitoring and regional cooperation to buffer vulnerable populations from further shocks.
