Global meat prices are climbing to record highs – FAO
Meat costs are driving the FAO Food Price Index upward.
WORLD – Global meat prices are reaching new records as strong demand in major markets continues to put pressure on international supply.
According to the Food and Agriculture Organization (FAO) of the United Nations, its Food Price Index showed minimal overall movement in August even as specific commodity groups pulled in opposite directions.
The index, which tracks five key food commodities, averaged 130.1 points in August, compared with a revised 130 points in July.
This represents a 6.9% rise from the same month last year and the highest overall reading since February 2023 when the index stood at 130.7.
Meat prices driving the surge
The FAO Meat Price Index rose by 0.6% in August, settling at 128 points, which marks the highest level recorded in at least 25 years.
This surpassed the previous peak of 127.2 reached in July, highlighting the continued upward trend in meat costs.
The agency linked the increase mainly to higher international beef prices, pushed by increased purchases from the United States and strong import demand from China.
These trends lifted export prices from key suppliers such as Australia and Brazil.
Prices for ovine meat also increased during the month, while pork values stayed relatively unchanged.
By contrast, poultry prices fell as Brazil maintained large volumes of exportable supplies.
Other commodities shifting
The FAO Vegetable Oil Price Index climbed 1.4% in August to 169.1 points, marking a three-year high.
The rise reflected higher palm, sunflower, and rapeseed oil quotations, partly connected to Indonesia’s announcement that it plans to raise its biodiesel blending mandate in 2026.
Soybean oil prices, however, moved slightly lower on expectations of plentiful soybean harvests in the next marketing year.
The FAO Sugar Price Index registered a small increase of 0.2% to 103.6 points, ending a streak of five consecutive monthly declines.
Concerns about sugarcane production in Brazil and higher international demand supported prices, although forecasts for larger crops in India and Thailand kept gains in check.
Meanwhile, the FAO Dairy Price Index slipped by 1.3% to 152.6, reflecting weaker demand from key Asian importers for butter, cheese, and whole milk powder.
The FAO Cereal Price Index dropped 0.8% to 105.6 as global wheat prices eased on expectations of bigger harvests in the European Union and Russia.
At the same time, maize prices went up, driven by stronger needs for feed and ethanol production in the United States.
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