According to the Food and Agriculture Organization (FAO), global food prices increased for the second consecutive month in March, mainly due to rising energy costs amid escalating conflict in the Middle East. The FAO Food Price Index averaged 128.5 points, up 2.4% from February and 1% higher than a year earlier, according to ProAgro Group.
The increase was primarily driven by the grain segment: global wheat prices rose by 4.3% due to drought in the United States and reduced sowing in Australia. Corn prices increased slightly, while rice prices fell by 3% due to the harvest season and weaker demand.
Vegetable oil prices rose by 5.1%, driven by a sharp increase in oil prices and expectations of higher demand for biofuels.
The meat price index increased by 1% due to higher pork prices in the EU and beef prices in Brazil, while lamb and poultry prices declined.
Dairy products rose by 1.2% due to seasonal supply constraints in Oceania, while cheese prices in the EU decreased due to excess production.
Sugar recorded the largest increase—up 7.2% in March—as Brazil plans to allocate more sugarcane to ethanol production amid high oil prices.
FAO warns that if the conflict continues, farmers may reduce planting areas or switch to less input-intensive crops, which could affect yields and global food supply over the current and next year.
As reported, global food prices increased in February 2026 after five months of decline, averaging 125.3 points, up 0.9% from January, though still about 1% lower than in February last year.
