Global meat prices hit record high in September amid tight supply and high demand

According to the UN FAO, meat prices have increased by almost 10% since the beginning of the year, in particular, in August the average FAO meat price index, which takes into account the prices of beef, pork, poultry and lamb, was almost 128 points, which is a record high since the indicator was created three decades ago.

 

Beef and lamb prices increased the most, while pork and poultry prices remained almost unchanged.

 

FAO experts believe that the price increase is due to a combination of meat supply shortages in several major exporting countries and stable global import demand. Animal disease outbreaks, tensions and uncertainty in global trade amid trade wars, climate change and extreme weather events affecting the entire production chain are also affecting prices.

 

To protect themselves from market fluctuations and possible supply disruptions, some importers are building up stocks of meat.

 

Beef prices have risen not only due to reduced supplies from Brazil and the US, but also due to other factors, including high energy, labor, transportation and cattle feed costs. Added to this are high interest rates, which increase the cost of financing for entrepreneurs.

 

Furthermore, in many countries the market was concentrated in the hands of a few large meat processors who had significant market power, which limited competition and increased pricing power.

 

All this is happening against a backdrop of uncertainty regarding trade policy, such as the introduction of tariffs, sanitary restrictions in some countries, or changes to trade agreements, the FAO notes.

 

U.S. beef supplies have declined significantly in recent years. The country's cattle population is now at its lowest in 70 years, although there are signs that fewer cows are being slaughtered to replace lost numbers in a process known as animal conservation. Livestock breeding and growth cycles take time, so a recovery in animal numbers is likely around mid-2027.

 

Brazil, a leading beef exporter, is also slowly moving towards a cattle conservation phase (to encourage breeding) with the aim of restoring its supply in the future.

 

The price of Brazilian beef has risen due to strong global demand, which has offset reduced access to the US market after President Donald Trump imposed a 50% tariff.

 

If you look at the global situation, you can see that beef prices have skyrocketed in many parts of the world.

 

According to the World Beef Report (WBR), in September the price of a fattened bull or bull for slaughter increased compared to September last year in the EU by 54%, in the US by 33%, in Brazil by 26%, and in Mexico by 17%.

 

This does not mean that the final price paid by consumers has increased to the same extent, as it is influenced by many other factors in the production chain, such as the volume of imported meat, taxes, transportation costs, the structure of the supply chain, and the level of competition between meat processors and retailers.