Global meat prices rise in 2010

by Editor
Tuesday, June 08, 2010

Contrary to the dropping prices of other key food items in the first months in 2010, prices in the meat sector have been on the rise because of declining production just as world demand rebounds, according to the latest edition of the biannual Food Outlook report released by the Food and Agriculture Organisation of the United Nation’s (F.A.O.'s).

A brisk expansion in poultry and pigmeat is expected to boost growth in overall meat production in 2010. Herd rebuilding, however, will constrain bovine and ovine meat outputs. World trade in meat is anticipated to stagnate in 2010, although pig meat exports may recover slightly.

Low supplies are likely to limit trade growth in bovine and sheep meat while prospects for trade in poultry products are uncertain because of a tightening of import restrictions. According to the FAO Meat Price Index, world meat prices were, on average, 12 percent higher in the first three months of 2010 than in the corresponding period of 2009.

Following last season’s stagnation, global meal consumption is expected to resume growing in 2009/10, thanks to improved meat demand and better profitability in livestock production, particularly in Asia. Globally, a year-on-year increase of 4 percent is predicted, growth will be primarily on account of soybean meal.

The complete report can be found here.