Global meat prices hit historic high amid shrinking supply and strong demand

Global meat prices reached an all-time high in September as tightening supplies and robust demand drove markets upward. The UN Food and Agriculture Organization’s (FAO) Food Price Index — which tracks monthly changes in international prices for key food commodities — showed that global meat prices have risen nearly 10% since the start of the year.

The FAO’s meat sub-index, which covers beef, pork, poultry, and lamb, averaged almost 128 points in August — the highest level since the index was created three decades ago. Prices for beef and lamb surged the most, while pork and poultry remained relatively stable.

FAO senior economist Monika Tothova told BBC Mundo that the record reflects a combination of export shortages in several major producing countries and sustained import demand worldwide. “Animal disease outbreaks, ongoing uncertainty, and tension over trade policies have all contributed to the price rise,” she said.

Some importers are now building up meat reserves to hedge against potential trade disruptions. Meanwhile, droughts and other extreme weather events continue to affect supply chains globally, adding further pressure to prices.

Beef Prices Soar

The sharp increase in beef prices is linked not only to lower exports from countries like Brazil and the United States but also to rising costs for feed, energy, labor, and transport. High interest rates have also raised financing costs for producers.

Tothova noted that in many markets, concentration among a few large meat processors gives them strong pricing power, limiting competition and amplifying price growth. Trade policy uncertainty — from tariffs and sanitary restrictions to shifting trade agreements — remains another destabilizing factor.

According to Andrés Oyhenard of consulting firm Tardáguila Agromercados, U.S. cattle supplies have declined sharply. “The U.S. cattle herd is now at its lowest level in 70 years,” he said. “Only now are we seeing early signs of herd rebuilding — a process that could take until mid-2027.”

Brazil, the world’s largest beef exporter, is also entering a herd-retention phase to restore future supply. However, Oyhenard noted that “with prices so high, there’s still a strong incentive to keep slaughtering.”

Brazilian beef prices have been buoyed by solid global demand, offsetting reduced access to the U.S. market after President Donald Trump imposed a 50% tariff.

According to the World Beef Report (WBR), prices for fattened or slaughter-ready cattle rose 54% in the EU, 33% in the U.S., 26% in Brazil, and 17% in Mexico compared with September last year.

However, this does not mean consumer prices have increased by the same margin, as retail prices also depend on import volumes, taxes, transportation costs, supply chain structures, and competition between processors and retailers.

Tags: pork, prices, Beef cattle