Global sugar prices rise 6.6% while meat and dairy prices decline

Global food prices declined by 1.2% in October 2026 compared with September, although sugar prices continued to rise sharply. According to FAO, the overall Food Price Index averaged 133.9 points, up 5.9% from October last year but 16.4% below its record level reached in March 2022. The decline was driven by lower prices for cereals, meat and dairy products, while edible oil prices increased slightly.

Sugar recorded the sharpest increase, with the FAO Sugar Price Index rising 6.6% month on month to 121.3 points. This was 28.8% above October 2025 and the highest level since December 2024. The index has now increased for four consecutive months. The main driver was rainfall in Brazil’s key Centre-South producing region, which disrupted sugarcane harvesting and processing. Additional support came from concerns over potentially lower production in India following uneven monsoon rainfall, as well as forecasts of reduced sugar output in the EU and Thailand in the 2026/27 season.

The FAO Meat Price Index fell by 1.2% in October to 125.5 points, remaining slightly above its year-earlier level. Pork prices faced the strongest downward pressure in the European Union, where ample supplies coincided with weak export demand. Lamb prices declined amid a seasonal increase in Australian supplies, although quotations remained significantly higher than a year earlier. Beef prices also edged lower due to stronger competition among exporters, while poultry prices were broadly stable as global demand remained balanced with available supplies.

The FAO Dairy Price Index decreased by 1.1% to 117.8 points, down 16.9% from October 2025. The main factor was weaker butter and cheese prices amid adequate supplies and subdued buying activity, particularly in the EU. Large butter inventories, substantial cheese supplies and competitively priced US exports continued to weigh on international quotations. Year on year, butter prices were 31.1% lower, while cheese prices declined by 29.3%.

Meanwhile, the milk powder market showed the opposite trend. Skim milk powder prices continued to rise due to strong import demand and limited availability for prompt shipment. In October, quotations were 45.8% higher than a year earlier. In the United States, producers of higher-value dairy protein ingredients created additional competition for milk solids, tightening milk powder supplies. Whole milk powder prices also increased slightly, as higher quotations in Oceania more than offset a modest decline in Europe.

Tags: meat, FAO, dairy products, global market, sugar