World food prices rise for second month on energy, demand - FAO
Meat and dairy indices climb, led by pig meat and milk powders
3 April 2026
1 minute read
By: The FAO World Food Price Index averaged 128.5 points in March 2026, up 3.0 points (2.4%) from its revised February level, marking a second consecutive month of increase.
Price indices across all commodity groups—cereals, meat, dairy, vegetable oils and sugar—rose to varying degrees, reflecting not only underlying market fundamentals but also responses to higher energy prices linked to the conflict escalation in the Near East. Compared to historical levels, the FFPI stood 1.2 points (1%) above its value a year ago but remained as much as 31.7 points (19.8%) below the peak reached in March 2022.
The FAO Meat Price Index averaged 127.7 points in March, up 1.2 points (1%) from February and 9.4 points (8%) above its level a year ago.
The increase was mainly driven by higher pig meat prices, alongside a modest rise in bovine meat quotations, while ovine and poultry meat prices softened. Pig meat prices surged, underpinned by rising quotations in the European Union ahead of strengthening seasonal demand.
World bovine meat prices also rose, led by Brazil, where tightening cattle availability curtailed exportable supplies against the backdrop of solid global demand; this was partly offset by stable prices in Australia, supported by ample availability.
World poultry meat prices edged lower, reflecting weaker quotations in Brazil amid ample supplies and steady import demand, with shipments to key Near East destinations rerouted through the Red Sea.
The FAO Dairy Price Index averaged 120.9 points, up 1.5 points (1.2%) in March, but remained 27.8 points (18.7%) below its level a year earlier. This marked the first increase since July 2025, driven primarily by higher quotations for skim milk powder (SMP), butter, and whole milk powder (WMP), while lower international cheese prices limited the overall rise. SMP and WMP prices extended the upward trend observed since January, supported by firm global import demand and a seasonal decline in milk supplies in Oceania as the production cycle moved past its peak.
International butter prices also edged up, with stronger gains in Oceania reflecting tightening milk fat availability, while increases in the European Union remained moderate due to comfortable cream supplies amid improving seasonal milk flows. By contrast, cheese prices declined further in the European Union, where increased milk availability, higher cheese output, and subdued export demand weighed on quotations, while prices in Oceania firmed, supported by tighter supply conditions and relatively strong demand.
