FAO Meat and Meat Products Market Summary22 November 2012
Global meat markets are challenged by high feed prices, stagnating consumption, and falling profitability, with growth in total output slowing down to two per cent, according to the FAO Outlook Report. With international prices close to record highs, growth in world trade is also decelerating.
Struggling with high feed prices and stagnating consumption, global meat production in 2012 is forecast to grow by less than 2 percent to 302 million tonnes. As falling industry profitability has translated into modest output gains in the developed countries, most of the world expansion is likely to take place in the developing countries, which now account for 60 percent of world output. Virtually all of the sector growth in 2012 is forecast to stem from the feed-dependent poultry and pigmeat sectors, as gains in both bovine and sheep meat outputs are anticipated to be modest.
World Meat Market at a Glance
Concerns about the profitability of the meat
sector have been compounded by a weakening of
the growth of export markets, with trade expansion
anticipated to slow down to 2 percent from 8 percent
in 2011. Global meat exports are expected to edge
up by about 600 000 tonnes to 29.4 million tonnes in
2012, mainly sustained by increased poultry and pig
meat flows and with much of the market expansion
likely to be captured by developing countries, in
particular Brazil and India.
Escalating feed prices and slowing meat production growth have pushed up international meat prices in late 2012, to levels approaching the highs attained in 2011. Accordingly, the FAO meat price index, which has jumped by 5 percent since July 2012, averaged 174 points between January and October, which compares with 176 for the same period last year. Most of the recent increase in the meat price index reflect price gains for poultry and pigmeat, which have soared by 9 percent and 12 percent respectively since July.
FAO International Meat Price Indices (2002-2004 = 100)
Further ReadingYou can view the full report by clicking here.