World food prices tick higher in June, led by meat and vegetable oils
The FAO Food Price Index, which tracks monthly changes in a basket of internationally traded food commodities, averaged 128 points in June, up 0.5 percent from May. The index stood 5.8 percent higher than a year ago, but remained 20.1 percent below its record high in March 2022.
The cereal price index fell 1.5 percent to 107.4 points, now 6.8 percent below a year ago, as global maize prices dropped sharply for a second month. Larger harvests and more export competition from Argentina and Brazil weighed on maize, while barley and sorghum also declined.
Wheat prices, however, rose due to weather concerns in Russia, the EU, and the US.
The vegetable oil price index rose 2.3 percent from May to 155.7 points, now 18.2 percent above its June 2024 level, led by higher palm, rapeseed, and soy oil prices.
Palm oil climbed nearly 5 percent from May on strong import demand, while soy oil was supported by expectations of higher demand from the biofuel sector following announcements of supportive policy measures in Brazil and the US.
Sugar prices dropped 5.2 percent from May to 103.7 points, the lowest since April 2021, reflecting improved supply prospects in Brazil, India, and Thailand.
Meat prices rose to a record 126.0 points, now 6.7 percent above June 2024, with all categories rising except poultry. Bovine meat set a new peak, reflecting tighter supplies from Brazil and strong demand from the US. Poultry prices continued to fall due to abundant Brazilian supplies.
The dairy price index edged up 0.5 percent from May to 154.4 points, marking a 20.7 percent annual increase.
In a separate report, the FAO forecast global cereal production in 2025 at a record 2.925 billion tonnes, 0.5 percent above its previous projection and 2.3 percent above the previous year.
The outlook could be affected by expected hot, dry conditions in parts of the Northern Hemisphere, particularly for maize with plantings almost complete.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Arabiya
4 hours ago
- Al Arabiya
Butter's global price surge hits croissants and kitchens alike
At the Mamiche bakeries in the 9th and 10th arrondissements of Paris, their famous pains au chocolat and croissants depend on an essential but increasingly scarce ingredient — butter. The bakery's regular supplier can no longer provide a steady flow of French beurre de tourage, a type of flat butter used to make the pastries. Mamiche has gone searching elsewhere to ensure the steady flow of sweet treats from its ovens, but it's coming with a cost. Butter prices in most of the world are lingering near record highs, with little end in sight to the surge. It's the result of a complex interplay of factors — challenges faced by dairy farmers from France to New Zealand, changes in Asian consumers' appetites that's spurring global demand, and commercial decisions by milk processors defending their bottom line. The end result is more cost pressure on consumers' favorite foods. 'When we have to change supplier, we can really see the difference' said Robin Orsoni, commercial operator for Mamiche. Other providers are charging prices 25 percent to 30 percent higher but Mamiche has to absorb the cost because 'we want to make our customers happy, we need the butter.' Around 70 percent of the butter exported around the world comes from two places — Europe and New Zealand. Each began 2025 with historically low stockpiles, and this supply tightness has caused prices to spike to a record, according to the Food and Agriculture Organization. The roots of the squeeze can be traced back to 2022, when the price of milk in Europe peaked as inflation and fuel costs hit farmers hard, pushing dairy processors to look at the best way to maximize profits. Butter is made by removing cream from raw milk and churning it. Once the process is complete, you are left with butter and buttermilk, the latter of which 'has some industrial uses, but those are relatively limited,' said Monika Tothova, an economist at the FAO. It's used for some cooking, to make other dairy products, and for livestock feed. In contrast, 'if you make cheese, you process the entire volume of milk,' said Tothova. Even the by-product from cheese-making, called whey, is in high demand from commercial food makers for flavoring and nutrition, or gym enthusiasts to bulk out the protein in their diets. European Union dairy processors have making more and more cheese. As a result, the bloc's butter production has steadily declined and is expected to hit an eight-year low this season, according to estimates from the US Department of Agriculture. Milk production itself is also becoming more challenging. In Europe, farmers' herd sizes are shrinking due to financial pressures, and they now face added risks to their cows from bluetongue virus, said Jose Saiz, a dairy market analyst at price reporting agency Expana. Lumpy skin disease, which can curb an infected cows' milk yields, is also making its way into Italy and France. Just as butter has fallen out of favor with dairy processors, consumers are developing a stronger taste for it, particularly in Asia. Global consumption of butter is expected to grow 2.7 percent in 2025, outpacing production, according to the USDA. In China demand has already grown by 6 percent in just one year. Usage in Taiwan between 2024 and 2025 rose 4 percent, while in India, the world's largest consumer, it is up 3 percent. Hong Kong's French bakery chain, Bakehouse, has been tapping into Asian consumers changing tastes. Its annual butter use is currently about 180 tons, an increase of 96 tons from the prior year after they opened two new stores, in addition to another 180 tons of cream, according to co-founder Gregoire Michaud. The firm only buys from well established suppliers — New Zealand has a top-tier reputation but China isn't good enough yet, he said. In New Zealand, which is a major dairy exporter and produces about 2.5 percent of global milk supply, butter production has yet to return to pre-pandemic levels, fluctuating around 500,000 tons a year since 2020. As in Paris, supply scarcity and high butter prices have forced Hong Kong's Bakehouse to cycle through three different providers in just a short period - from Australia, to New Zealand and then Belgium. Now they're potentially looking for a fourth. Western consumers are also eating more butter, which for years was shunned for being unhealthy, as they look to cut ultra-processed foods out of their diets. Purchases of pure block butter in the UK have grown, said Susie Stannard, lead dairy analyst at the UK Agriculture and Horticulture Development Board. 'Consumers who can afford it will still buy butter,' she said, but they aren't immune from price pressures. At the newly opened Morchella restaurant in London's Clerkenwell district, the brown butter and bread that was so popular at its sister eatery, Perilla in Newington Green, has been replaced with olive oil. Before the recent price hikes 'you'd put a lot of butter into the pan to base that piece of fish and meat,' said Ben Marks, who heads up the kitchens at Perilla. 'Now you've just got be much cleverer.' Relief for consumers isn't expected to come any time soon. Butter prices are also affected by the global conflicts, supply chain disruptions and tariff wars that have roiled every other commodity. Amid this 'very hot market,' Hong Kong's Bakehouse is now prioritizing butter from closer providers to avoid a loss of supply, said Michaud. Orsoni said Mamiche will absorb the higher cost of butter to keep French staples affordable for its customers, but Perilla's Marks said it's 'inevitable' that diners will face higher prices. The heat wave seen in Europe in recent weeks could also exacerbate the situation. High temperatures can reduce yields from diary cows, while also pushing up demand for other products that compete with butter for the fatty cream taken off the top of milk. Tennis fans reaching for cream to accompany their strawberries as they watch Wimbledon, or workers cooling down with an ice cream in city plazas, 'can only hold butter prices up,' said Stannard.
Al Arabiya
4 hours ago
- Al Arabiya
BlackRock halted Ukraine fund talks after Trump's election win: Report
BlackRock Inc. halted its search for investors to back a multibillion-dollar Ukraine recovery fund earlier this year after Donald Trump's election victory saw the US sour on the eastern European country, people familiar with the discussions said. The fund, meant to be unveiled at next week's Ukraine Recovery Conference in Rome, was close to securing initial support from entities backed by the governments of Germany, Italy and Poland, the people said, declining to be identified discussing private information. However, in January, BlackRock decided to pause talks with institutional investors due to a lack of interest amid increased uncertainty over Ukraine's future. Donald Trump ran his reelection campaign on a promise to immediately end the war in Ukraine and bring the country's president, Volodymyr Zelenskyy, and Russian counterpart Vladimir Putin together for peace talks. Since his inauguration at the start of the year, the US president has clashed with both men and issued inconsistent proposals for a path forward, while indicating an end to US military support for Ukraine. The US government was a notable absence from the fund's backers in December. Reconstruction funding The Ukraine Development Fund was on track to secure at least $500 million from countries, development banks and other grant providers, along with $2 billion from private investors, Philipp Hildebrand, vice chairman of BlackRock who was among the financiers leading the discussions, said last year. At the time, Hildebrand said that could bring together a consortium of equity and debt investors who could finance at least $15 billion of reconstruction work in Ukraine. The total bill to rebuild Ukraine following Russia's invasion was estimated at more than $500 billion by the World Bank and others in February. A BlackRock spokesperson said the firm completed its pro-bono advisory work on the Ukraine Development Fund in 2024 and is currently not engaged in 'any active mandate' with the Ukrainian government. 'The only conversations that drive our decision-making are those with our clients,' the spokesperson added. BlackRock was set to unveil the fund in Italy, some of the people said, during the Ukraine Recovery Conference on July 10-11 that Italy's Giorgia Meloni and Ukraine's Zelenskyy are set to attend, though the timeline was never made public. Spokespeople for Prime Minister Meloni and the foreign ministry didn't respond to a request for comment. France has been working on a fund proposal to replace the canceled BlackRock initiative but it's not clear how effective the new plan will be without US backing, the people said.
Arab News
5 hours ago
- Arab News
Jameel Motors, Geely Auto to enter Italian market with new energy passenger vehicles
Jameel Motors, a leading provider of mobility solutions and partner of choice for top automotive brands, has signed a distribution agreement with Geely Auto, a globally renowned auto group, to bring Geely's new energy passenger vehicles (NEVs) to the Italian market. Italy is a new market entry for the two automotive leaders, with Jameel Motors having won the distribution agreement through a competitive process involving both local and international companies, shortly after winning the agreement for Poland in April. Italy is one of Europe's most relevant markets, with a strong potential for NEV growth. In the first five months of 2025, joint sales of electric vehicles and plug-in hybrid electric vehicles accounted for 11% in the Italian market — a remarkable 132% year-on-year increase in EV registrations, signaling strong demand for innovative international brands. This presents a long-term opportunity and supports Jameel Motors' strategic expansion into high-potential markets. Jameel Motors Italia will be bringing advanced automotive technology, a fresh choice of high-quality vehicles, and first-class customer service to Italian drivers, while contributing to the country's growing shift toward electric mobility. Jameel Motors Italia will officially launch two of Geely Auto's standout models in the final quarter of this year. The two models are the Geely EX5, a next-generation all-electric SUV, and a plug-in Super Hybrid SUV. Geely Auto vehicles are built on the brand's advanced modular platform architecture, delivering state-of-the-art design, safety, performance and offering the highest quality underpinned by its six-year warranty. Jameel Motors Italia aims to develop a professional dealer network across the country, offering approximately 100 Sales and Service points when fully operational. Fady Jameel, vice chairman, Jameel Motors, said: 'This marks an exciting new chapter for Jameel Motors as we expand into Italy — one of Europe's most high-potential automotive markets. Our collaboration with Geely Auto brings together innovation, quality, and a shared commitment to a more sustainable mobility future. 'By winning this agreement, we look forward to offering Italian customers a new standard in electric mobility with advanced vehicles that truly meet their evolving needs. We also look forward to seeing Jameel Motors continue its international expansion as a distinguished partner in the mobility sector.' Moe Wang, vice president of Geely Auto International Corporation, said: 'Expanding to Italy is an important step in Geely Auto's globalization strategy. With the in-depth cooperation with Jameel Motors, Geely Auto will fulfill its mission of providing green, intelligent and convenient mobility solutions, and comprehensively enhance consumers' mobility experience.' Jasmmine Wong, chief executive officer, Jameel Motors, said: 'This is an incredible opportunity at a time when the market has become increasingly dynamic due to the green transition and the rapid technological change in the automotive sector. The ability to innovate, listen to the customer, and anticipate trends will be our strength, allowing us to offer increasingly innovative and sustainable solutions.' Jameel Motors Italia will be led by Marco Santucci, a seasoned automotive executive with almost three decades of experience in the Italian market. Santucci has held pivotal roles at Ford, Toyota Motor Europe, and most recently served as president and CEO of Jaguar Land Rover Italy. Renowned for his leadership and expertise in sales and marketing, innovation, and customer experience, he brings a track record of driving performance and sustainable growth. His deep industry insight and strategic mindset position him as a key asset in advancing Jameel Motors Italia's vision. Marco Santucci, managing director, Jameel Motors Italia, said: 'With Geely Auto's cutting-edge technology and Jameel Motors' customer-first approach, we are well-positioned to deliver real value to the market. Remaining flexible and open to change will be the key to ensuring a future of success, generating a positive impact for the market and our customers.' Geely Auto is a leading Chinese automobile manufacturer and pioneer in intelligent driving, with a presence in more than 80 countries and sales of over 2.17 million vehicles in 2024. Geely Auto operates with an innovation-first mindset, driven by more than 50,000 employees working across 12 factories and 5 global R&D centers in Hangzhou, Ningbo, Gothenburg, Coventry and Frankfurt. Most recently, it released the first 'Intelligent Vehicle AI' technology system. Furthermore, Geely Auto has consistently ranked as a top ESG performer within its sector, having achieved an AA grade in the MSCI ESG Rating and as part of the Hang Seng Corporate Sustainability Index. Since 2023, Italy has been Geely Auto's hub for creativity and design with the establishment of Geely Innovation Design Center in Milan. It works in tandem with the Geely global design network for vehicle design and concept development. From working closely with top-tier Italian designers to provide electric mobility solution to local consumers, Geely is committed to firmly establishing its brand in Italy with increasing awareness. Jameel Motors represents some of the world's most recognized commercial and passenger vehicle brands and has operations in more than 10 countries across the Middle East, Africa, Europe, Asia and Australia. This agreement marks another milestone as Jameel Motors continues to expand internationally and harness innovation for the future of mobility. For more information, please visit and
