The Food and Agriculture Organisation (FAO) food price index for June was down a marginal 0.4 points compared with May at 130.3 points.

While the overall index was relatively stable, there was a notable decline in cereals, dairy and a small drop in the beef price index, but sheepmeat provided some positive news with that index increasing.

The beef price index fell by 1.5 points in June to 154.1. Despite the decline, this is the third-highest on record with the only two higher months being April and May this year.

In its commentary on beef prices, the FAO points to lower quotations from Australia and expected increased supply of beef for export as its China quota filled up in June. It also notes a similar situation with Brazil, leading to a gradual slowdown in purchases.

Sheepmeat was a bright spot in the June index, increasing by 2.8 points to 166.9, another record high, driven by sustained demand combined with limited supplies available for trade. Poultry meat also recorded an increase, up 5.2 points to 124.5, but pigmeat fell, down 1.6 points to 102.3 points.

Dairy

The slump in global dairy markets is reflected in a further decline in the June dairy price index. It fell to 117.4, which is down 1.8 points compared with May, but 31.1 points lower than it was in June a year ago.

The main issue with dairy prices has been the slump in value of butter and cheese over the past year.

In June 2025, the butter price index was at a record high of 226 points, but it has fallen sharply month on month since then to 135 points in June 2026.

It is a similar picture with cheese, where the index has fallen from 153 points in June last year to 107 points in June this year.

Skimmed milk powder has gone against the trend, with the index at 131 points in June, the same as the previous month, but 21 points higher than it was in June 2025.

Cereals

As the Irish harvest gets under way, there is little comfort for tillage farmers in the global cereal price index, which fell by four points in June to 110.2, though this is 2.9 points higher than it was in June 2025.

World wheat prices are down 4.4%, with the FAO saying that “rapid harvest progress and strong supply prospects in the Black Sea region outweighed concerns over crop prospects in the United States and Australia”. The stronger US dollar and softer energy markets also contributed.

Global maize prices fell by 6.2%, reflecting ample supplies in South American exporting countries, combined with falling oil prices cooling biofuel demand. International prices for barley and sorghum fell by 3.4% and 7.7% respectively, but the rice price index increased by 3.2%.

The absolute numbers in any index are meaningless in themselves – what is important is the direction of trend over time.

In June, it is clear that the difficulties in global dairy markets – particularly for butter and cheese – show no sign of easing and the best that can be said for cereals is that they aren’t as bad as they were this time last year.

After a long run of rising prices, the beef index paused last month and it will be interesting to see how it performs in July, with China effectively closed to Australia and Brazil. Poultry and sheepmeat recorded increases, but pigmeat remains challenging.