Global meat prices rise despite higher supplies - report
Rising prices reflect higher demand
19 July 2022
2 minute read
By: According to the recently released OECD/FAO Agricultural Outlook report for 2022-2031, world meat production rose 5% in 2021 to an estimated 339 Mt, led by a large 34% increase in pig meat production in China following two years of precipitous decline induced by an outbreak of ASF.
Supplies of poultry, bovine and sheep meat rose only marginally as high feed prices reduced profitability. Bovine meat output in some countries was restrained by a variety of factors such as COVID–19 related disruptions, labour shortages, the on-going shrinkage of the dairy herd in the European Union, and the implementation of an export tax in Argentina.
On the other hand, beef output increased 12% in India as slaughter numbers increased following the gradual reopening from the COVID-19 pandemic lockdown and in response to improving demand from overseas markets in the Middle East and Southeast Asia.
World meat imports in 2021 are estimated to have reached 40 MT, led by poultry imports. Leading meat exporters ‒ including Brazil, the European Union and the United States ‒ supplied much of this higher import demand.
International meat prices quoted in the Outlook trended upward in 2021, reflecting higher demand from economic recovery and higher marketing and transport costs. However, meat to feed price ratios fell significantly, putting pressure on sectoral profitability in intensive feed-grain livestock operations. This will cause markets to tighten further inducing higher prices early in the Outlook period, the report concluded.
