Global Food Costs Rise in July

(MENAFN) Global food expenses climbed in July, largely due to escalating worldwide rates for meat and vegetable oils, as per a report released Friday by the UN's Food and Agriculture Organization (FAO).

The FAO’s food price gauge increased by 1.6% compared to the previous month, hitting 130.1 points during July.

The index tracking vegetable oil prices jumped significantly—by 7.1% on a monthly scale—reaching its highest level in three years at 166.8 points.

This surge was influenced by price hikes in palm, soybean, and sunflower oils.

Palm oil values climbed due to heightened international demand and improved market competitiveness.

Sunflower oil rates also went up, driven by dwindling export volumes from the Black Sea area.

In contrast, rapeseed oil prices dipped, owing to a limited fresh crop harvest in Europe.

Meanwhile, the meat price index saw a 1.2% rise in July, touching a fresh all-time high of 127.3 points.

The boost was mainly linked to increased import needs, particularly from China and the United States, which pushed up beef and lamb prices.

Dairy costs slightly decreased, with the dairy index slipping by 0.1% from June to settle at 155.3 points—its first drop since April 2024.

"Prices for butter and milk powders decreased, reflecting abundant export supplies and subdued import demand, particularly from Asia. However, international cheese prices continued to rise, driven by strong demand in Asian and Near East markets and tighter export availability in the European Union," the report said.

Grain prices also declined, with the cereal price index falling 0.8% from the previous month to 106.5 points in July.

Similarly, the sugar index decreased by 0.2%, landing at 103.3 points.

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