7 hours ago
11
March 17, 2025 | 05:29 am
TEMPO.CO, Jakarta - Global food commodity prices experienced an increase in February, triggered by the rising prices of sugar, dairy products, and vegetable oil, according to a report by the Food and Agriculture Organization (FAO) of the United Nations on Friday, March 7, 2025.
As reported by Reuters, the FAO Food Price Index, which measures the monthly changes in international prices of a basket of food commodities traded globally, recorded 127.1 points last month, an increase of 1.6% compared to January and an 8.2% increase compared to February 2024.
The surge in prices is mainly caused by the increase in sugar prices, which rose by 6.6% in a month. This increase is driven by concerns over the increasingly tight global supply for the 2024/2025 season, mostly influenced by unfavorable weather conditions in Brazil.
Dairy product prices increased by 4% compared to January. All major dairy products experienced price increases, mostly due to very high import demand. This demand exceeded production capacities in some major exporting regions, thus contributing to the surge in prices in the global market.
Meanwhile, vegetable oil prices also rose, with a 2% monthly increase and a staggering 29.1% increase compared to the same period last year. The price increase is mainly caused by the soaring prices of palm oil, soybean oil, and sunflower oil. The main factor driving this increase is the limited supply in the Southeast Asia region, exacerbated by high demand from the continuously growing biodiesel industry.
In the cereal sector, the price index monitored by the FAO showed a slight increase of 0.7% compared to the previous month.
Wheat prices experienced a significant increase due to reduced supplies in Russia. Additionally, concerns about farming conditions in some major wheat-producing regions, such as Eastern Europe and North America, also added pressure to the commodity prices.
As for corn, prices continued to trend upwards. This is due to the increasingly limited supply in Brazil and high export demand from the United States, causing global corn prices to continue rising.
Conversely, the rice market showed a declining trend. In February, global rice prices recorded a decrease of 6.8%. This decline contrasts with the upward trend in other food commodities, indicating that the supply and demand factors for rice tend to be more stable compared to other cereals.
In a separate report, the FAO estimated a moderate increase in global wheat production in 2025, projected to reach 796 million tons, about 1% higher than the previous year.
This growth is supported by the forecasted increase in production in the European Union, especially in France and Germany.
However, the FAO warned that several challenges could affect harvest results, such as drought conditions in Eastern Europe and excessive rainfall in Western Europe.
Meanwhile, in the United States, the wheat acreage is expected to increase, but the per hectare yield is likely to decrease due to ongoing drought conditions.
Global rice production is predicted to reach a record high of 543 million tons in the 2024/25 season. This increase is driven by various factors, including promising harvest prospects in India, which is one of the largest rice producers in the world. Additionally, highly supportive growth conditions in several Southeast Asian countries, particularly in Cambodia and Myanmar, also contributed to this surge in production.
On the other hand, the FAO has also revised its projection for global cereal production for the year 2024. The agency now projects that total global cereal production will reach 2.842 billion tons, a slightly higher figure compared to the production level in 2023.
Editor’s Choice: World Food Prices Rose in February on Back of Sugar Rush, UN's FAO Says
Click here to get the latest news updates from Tempo on Google News
How to Maintain a Proper Sleep Pattern During Ramadan
2 hari lalu
During Ramadan, sleeping patterns change due to the need to wake up early for suhoor and undergo activities throughout the day.
The 10 Best Airports for Food that Worth the Stop
3 hari lalu
For hungry travelers, being in any of the best airports is a true blessing, with top-notch restaurants and delicious dining options.
5 Foods People with GERD Should Avoid When Fasting
4 hari lalu
Fasting can be particularly challenging for people with gastroesophageal reflux disease (GERD).
Is Sugar the "Ultimate Enemy" of Fasting?
6 hari lalu
Sugar is a source of energy for the body. However, during fasting, excessive sugar consumption should be avoided to prevent easily getting tired.
World Food Prices Rose in February on Back of Sugar Rush, UN's FAO Says
8 hari lalu
The Food and Agriculture Organization (FAO) noted a hike in global food commodity prices in February.
Agriculture Minister: No Grounds to Raise Prices, All Food Supplies Secure
13 hari lalu
Minister Andi Amran Sulaiman assures there is ample food supply for the next four months.
IFish: Transforming Indonesia's Inland Fisheries Towards Sustainability
14 hari lalu
Over 7 years, IFish successfully develops 15 national & regional policies, governing more than 11,800 square KMs of critical freshwater ecosystems.
Papua's Yoboi Indigenous Community Transforms Sago Production, Opens New Market Opportunities
15 hari lalu
The Masyarakat Adat, or indigenous people, of Yoboi village of Papua are adopting new ways to turn their native sago palms into high-value products.
Prabowo Ensures No Rogue Speculators Ahead of Ramadan
16 hari lalu
President Prabowo Subianto claims to have been monitoring the developments in food prices in recent weeks.
5 Tips for Maintaining Optimal Health During Ramadan Fasting
18 hari lalu
By maintaining health, fasting can be carried out more comfortably and optimally.
