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Global food prices rise, could hit South African consumers

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By Charmaine Ndlela

Global food prices have risen for the first time in five months, driven by higher costs for meat, cereals and vegetable oils, according to the latest index released by the Food and Agriculture Organization (FAO).

The FAO Food Price Index, which tracks monthly changes in international prices of a basket of globally traded food commodities, averaged 125.3 points in February.

This marks a 0.9% increase from its revised January level, although it remains 1.0% lower than a year earlier.

Wheat prices led the increase, rising by 1.8% amid concerns over frost in parts of Europe and the United States, ongoing tensions in the Black Sea region, and supply disruptions in Russia, the FAO said.

The organisation warned that global wheat production is forecast to decline by nearly 3% to 810 million tonnes in 2026.

The expected drop is linked to reduced planting in key producing regions, including the European Union, Russia and the United States, as farmers respond to softer prices.

Global cereal utilisation for the 2025/26 season is projected to reach a record 2.943 billion tonnes, driven largely by increased use of maize and barley for animal feed, particularly in South America where supplies remain abundant.

The FAO also estimates that 41 countries—most of them in Africa—currently require external food assistance due to conflict, economic pressures and climate-related shocks.

Among the 44 low-income food-deficit countries, cereal production is expected to decline by 1.0% in the 2025/26 season, while demand is projected to grow by 1.5%, increasing reliance on imports.

Overall, the February uptick in the FAO Food Price Index signals renewed upward pressure on global food prices, driven by supply risks and strong international demand across key commodity markets—raising concerns about potential knock-on effects for consumers in countries such as South Africa.

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