Global food prices climbed in August to their highest level since late 2022, with extreme weather and war-related disruptions across the Gulf and Black Sea deepening concerns about supplies of essential staples, the United Nations’ Food and Agriculture Organization (FAO) said.
Scorching temperatures and drought across Europe, warnings of a potentially severe El Niño weather pattern and trade disruptions linked to the wars in Ukraine and Iran have rattled agricultural markets. Grain prices reached three-year highs, while sugar climbed to its highest point in a year.
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The FAO Food Price Index, which measures monthly movements in a basket of internationally traded food commodities, averaged 133.3 points in August, up from a revised 130.8 in July.
It was the index’s highest reading since November 2022, although it remained almost 17% below the record set in March 2022, following Russia’s full-scale invasion of Ukraine.
Extreme heat and drought in Europe and disruption from war are pushing prices higher
FAO benchmarks for cereals, vegetable oils, sugar, meat and dairy all increased during August.
Europe’s extreme weather has damaged the outlook for maize and sugar beet harvests and threatened livestock production. The prospect of an El Niño event has also raised fears about supplies of vegetable oils and sugar, the agency said.
As attacks intensify in the Black Sea, grain shipments from Russia and Ukraine have been curtailed during their four-and-a-half-year-old war. At the same time, the US-Israeli war on Iran continued to put pressure on fertilizer flows needed by farmers.
In a separate report, the agency lowered its forecast for global cereal production in 2026 by 3.4 million metric tons from its July estimate. It now expects output of 2.980 billion tons, 2.0% below 2025 levels but still the second-largest harvest ever recorded.
France to give more than €1bn in aid to farmers hit by extreme weather
France has pledged more than €1bn in assistance to farmers after record heatwaves and drought inflicted extensive damage on crops, pastures and water supplies.
The package comes as the French government prepares a politically sensitive budget for next year, with Paris attempting to rein in the deficit ahead of the 2027 presidential election.
“€1bn represents a massive effort given the current budgetary context,” Agriculture Minister Annie Genevard told reporters.
Of the total, about half — €520m — will fund rapid payments for losses caused by extreme weather, she said.
The plan will also establish a local recovery fund, helping farms purchase seeds, plant material and animal feed after drought left agricultural land severely parched.
Additional measures include relief on land taxes, assistance with social-security contributions and a fuel subsidy.
France’s largest farmers’ union, the FNSEA, said losses in agricultural production this summer would exceed €10bn. More than €5bn has already been estimated for the livestock and crop sectors combined.
Another heatwave is forecast this week in the European Union’s biggest agricultural producer.
