By Kemi Akinseye
Global food prices rose in March to their highest level since September 2025, concurrently with rising energy costs caused by the escalating U.S.-Iran conflict pushed up production and transport expenses, the Food and Agriculture Organisation in its latest reports.
The FAO Food Price Index, which tracks changes in a set of globally traded food commodities, rose by 2.4 percent from its revised February level. This is slightly above its value a year ago, although nearly 20 percent below its March 2022 peak, reached after the start of the war in Ukraine.
It reported that cereal price index increased by 1.5 percent from the previous month, led by a 4.3 percent increase in international wheat prices due to worsening crop prospects in the US and expectations of lower plantings in Australia due to higher fertiliser costs.
Also, global maize prices edged up as ample global supply offset concerns over fertiliser costs, and indirect support from greater ethanol demand prospects linked to higher energy prices.
Vegetable oil prices increased 5.1 percent, marking the third consecutive monthly rise. Higher quotations for palm, soy, sunflower, and rapeseed oil reflected the impact of rising global energy prices and expectations of stronger biofuel demand.
Also, Palm oil prices reached their highest level since mid-2022.
Sugar prices jumped 7.2 percent in March to their highest since October 2025, as higher crude oil prices drove expectations that Brazil, the world’s largest sugar exporter, would channel more sugarcane into producing ethanol.
Also, Meat prices rose one percent, led by higher pig meat prices in the European Union and bovine meat prices in Brazil, while poultry prices edged lower.
Meanwhile, rice prices dropped 3 percent due to harvest timing and weaker import demand.
The Food and Agricultural Organisation in a separate report, slightly raised its estimate for the 2025 global cereal production forecast to a record 3.036 billion metric tons. It would be 5.8 percent higher year-on-year.
The global outlook still remains uncertain as the conflicts rages on.
