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World food commodity prices rose for a third straight month in August 2026, the United Nations Food and Agriculture Organization reported, with its Food Price Index averaging 133.3 points, up 1.9 percent from July (FAO, Food Price Index, September 2026 release). Extreme heat and drought in Europe and the United States damaged maize and sugar beet crops, while the developing El Niño pattern raised concern for palm oil and sugar output across Asia.
Sugar led the increase, up nearly 12 percent on the month, as dry conditions cut European sugar beet yield forecasts and El Niño-linked weather affected production prospects among major Asian producers (FAO, September 2026). Vegetable oil prices rose 0.6 percent, with firmer palm and soybean oil quotations offsetting softer sunflower values. Cereal prices increased 2.2 percent, with wheat and maize both higher on weaker European harvest prospects and ongoing export disruption elsewhere (Gulf News, September 6, 2026).
The pattern points to a broader theme in 2026: as weather risk concentrates in a small number of major producing regions, buyers are placing increasing value on origin diversity. East African supply — including green coffee, pulses, oilseeds and spices sourced from Ethiopia’s Oromia and SNNPR regions — offers exactly that kind of diversification for international buyers looking to reduce exposure to any single climate-affected market.
FAO Chief Economist Maximo Torero said in the agency’s September 2026 statement that climate shocks, geopolitical tensions and disrupted trade logistics are together pushing a renewed risk premium into global food markets, reinforcing the importance of resilient, well-diversified supply relationships.
Danka Coffee Export PLC supplies green coffee alongside kidney beans, soybeans, sesame seeds and turmeric sourced from Oromia and SNNPR, built for buyers who value consistency and traceability. For more on our export portfolio, visit dankaexports.com.
References: Food and Agriculture Organization of the United Nations (FAO), Food Price Index, September 2026 release; Gulf News, “Global Food Prices Climb 1.9% in August as Sugar, Wheat and Maize Surge on Weather and Trade Risks,” September 6, 2026.
