Global food prices continued their downward trend in October 2025, with the FAO Food Price Index slipping 1.6%, marking its lowest level in over two years. The decline was led by cheaper dairy, sugar, and meat products, reflecting improved global supply, lower energy costs, and stabilising logistics chains.
The FAO Dairy Price Index dropped 3.4%, as robust milk production in Europe and New Zealand outpaced global demand. Export interest from major Asian buyers softened, while high inventories in importing regions further pressured prices. Butter, cheese, and milk powder all registered price declines, signalling a cooling phase in international dairy trade.
According to FAO analysts, this moderation reflects the market’s gradual adjustment after two years of extreme volatility. Yet, for farmers and cooperatives, it also raises concerns about profit compression, as production costs remain elevated despite weaker selling prices.
To navigate this phase, exporters and processors are urged to focus on innovation, efficiency, and diversification, expanding into emerging markets and investing in value-added dairy products such as fortified milk powders, protein concentrates, and premium cheeses.
For dairy investors, the trend indicates a transition from inflation-driven spikes to structural stability, where adaptability and sustainability will define long-term competitiveness.
