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International Meat Prices Fall as Supplies Grow

22 June 2015, at 12:00am

GLOBAL - The latest FAO food outlook shows meat prices falling as production grows and input costs fall.

Meat prices have fallen in the first four months of 2015, according to the latest Food Outlook published by the FAO.

This comes as global meat production is anticipated to continue expanding, at around 1.3 per cent in 2015, 4 million tonnes up on 2014.

Meat production is being driven by expansion in the pig and poultry sectors. As lower input costs, for example low feed costs from good global cereal and grain harvests, have supported increasing supply, finished prices have remained proportionately low.

With expansion of meat production predominantly in regions where demand is also growing, particularly for poultry, a slight slow-down in overall meat trading is to be expected.

Trade growth is expected to be only 1.7 per cent this year; this is less than last year but stronger than production growth.

Pig meat will have a significant role in this, as key exporting countries like the US recover from PEDv and expand. China is set to produce over half of the world’s pig meat in 2015 but will also increase its import capacity as domestic demand remains strong.

Sheep meat is the only protein for which trade is expected to reduce this year, as key exporters New Zealand and Australia report only modest production growth.

Bovine meat production is expected to remain static on the year, leading to it being the only protein to increase in price in 2015, as demand grows ahead of supply.

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