UN: world food prices in March rose to the highest since September 2025

As Reuters notes, the main growth factor was the rise in price of energy resources against the backdrop of escalation in the Middle East. The FAO warns that if the war drags on for more than 40 days, high fuel and fertilizer costs could lead to fewer crops planted, less fertilizer use and farmers switching to lower-cost crops, hitting supplies and prices in the coming quarters.

Sugar prices rose the most in March, up 7.2%, as the market expects Brazil to use more sugar cane for ethanol production due to high oil prices. The price index for vegetable oils rose by 5.1%, and grain prices rose by 1.5%. In particular, world wheat prices rose by 4.3% amid worsening crop prospects in the US and expectations of a reduction in plantings in Australia due to more expensive fertilizers.

Prices for meat in March increased by 1%, dairy products – by 1.2%, while rice, on the contrary, fell in price by 3% due to the seasonal arrival of the new crop and weak demand. At the same time, FAO slightly increased its forecast for world grain production in 2025 to a record 3.036 billion tons, which is 5.8% more than a year earlier.

The current rise in prices does not yet mean a food shortage, but does indicate growing inflationary pressure along the entire chain – from fuel and fertilizers to bread, vegetable oil and sugar.