World food prices rose in April to their highest level in more than three years, driven in part by disruptions linked to the Iran war and the effective closure of the Strait of Hormuz, according to the United Nations Food and Agriculture Organisation.

The FAO said vegetable oil prices were particularly high, with increases linked to elevated energy costs and rising demand for biofuels made from agricultural products such as oil-rich crops, News.Az reports, citing Telegraph India. 

FAO chief economist Máximo Torero said higher energy prices are contributing to increased demand for biofuel production, which is supporting upward pressure on vegetable oil markets.

The FAO Food Price Index, which tracks global prices of key food commodities, rose for a third consecutive month in April, reaching its highest level since February 2023. The index increased by 1.6 percent from March to 130.7 points.

Vegetable oil prices recorded the sharpest rise, increasing nearly six percent month-on-month due to higher prices for soybean, sunflower, rapeseed and palm oil, with biofuel policy incentives also contributing.

Cereal prices rose slightly, reflecting modest increases in wheat and maize due to weather concerns, higher fertiliser costs and biofuel demand. However, the FAO noted that global cereal markets remained relatively stable due to sufficient stock levels from previous seasons.

Meat prices also increased, reaching a record high due to limited livestock availability in key producing countries such as Brazil. Sugar prices, however, fell due to expectations of strong supply from major producers including Brazil, China and Thailand.

Despite the impact of geopolitical tensions, the FAO said global agri-food systems have remained broadly resilient.

The organisation also slightly increased its forecast for global cereal production in 2025, projecting a record output of 3.04 billion tonnes, around six percent higher than the previous year.

News.Az 

By Leyla Şirinova