Global meat prices have reached another high, primarily driven by increased import demand for beef and lamb from the US and China.
The data from the Food and Agriculture Organization (FAO) of the United Nations shows that Food Price Index, which monitors five food commodities, showed little overall change in August.
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Rising prices for meat, sugar, and vegetable oils counterbalanced declines in cereal and dairy prices.
The overall index averaged 130.1 points in August, a slight uptick from July’s revised figure of 130 points, marking a 6.9% increase compared to the same period last year and the highest since February 2023 at 130.7.
Meanwhile, the FAO Meat Price Index climbed by 0.6% in August, reaching a historical high of 128 in at least 25 years, surpassing the previous record of 127.2 set in July.
The FAO attributed the surge in the sub-index to the “rising international bovine meat prices, underpinned by strong demand in the United States of America and robust import demand from China, which respectively boosted Australian and Brazilian export quotations”.
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By GlobalDataOvine prices also rose, while pork prices “remained broadly stable” and poultry meat quotations “declined amid ample exportable supplies” from Brazil, the agency added.
The FAO Vegetable Oil Price Index rose by 1.4% from July, hitting a three-year peak of 169.1.
The uptick was influenced by rising palm, sunflower, and rapeseed oil prices, partially due to Indonesia’s “intention to further raise its biodiesel blending mandate next year”.
Conversely, global soy oil prices saw a slight decline, with expectations of abundant soybean supplies in the coming marketing year.
The FAO Sugar Price Index experienced a minor increase of 0.2% to 103.6, following five months of consecutive decreases.
“Concerns over sugarcane production and yields in Brazil, as well as stronger global import demand” drove the demand, the FAO said.
However, the potential for larger harvests in India and Thailand mitigated the price escalation.
Offsetting these increases were declines in cereal and dairy prices.
The FAO Dairy Price Index fell by 1.3% to 152.6, with reduced quotations for butter, cheese, and whole milk powder due to lower import demand from significant Asian markets.
Additionally, the FAO Cereal Price Index decreased by 0.8% to 105.6.
International wheat prices dropped, backed by “larger harvests” in the European Union and the Russian Federation.
Meanwhile, global maize prices rose, influenced by heightened demand for feed and ethanol production in the US.
