PEDv drives global meat prices higher
Latest figures from the UN Food & Agriculture Organisation (FAO) show that global meat prices reached record levels in June.
Latest figures from the UN Food & Agriculture Organisation (FAO) show that global meat prices reached record levels in June. The FAO Meat Price Index hit 194.2, up 0.7% on May and 8% compared with a year before. The increase was mainly attributed to the continuing strengthening of pig meat prices, as supplies tightened due to the impact of PEDv in the US and elsewhere. Prices for beef and sheep meat also rose seasonally but poultry meat prices were little changed. Despite the recent increase, meat prices have still risen more slowly than most other food categories over the last decade. The FAO Food Price Index, which also incorporates cereals, oils, sugar and dairy products, stood at 206.0, down 2% from May and 6% from June 2013, largely due to lower cereal and vegetable oil prices.
The rise in pig meat prices is confirmed by latest export data. Based on figures from the four main exporters – the US, EU, Canada and Brazil – pork export prices started the year averaging around US$3 per kg, similar to the levels seen over the previous two years. However, prices began to rise in March and by April they had reached a record $3.30 per kg, nearly 20 cents above the previous high point in 2011. Although EU figures for May are not yet available, prices of exports from the US, Canada and Brazil all rose further, suggesting an average price of close to $3.50 for the month.