Global meat prices still falling
Latest figures from the UN FAO show that global meat prices fell 2% in December, to end 2015 at their lowest point since early 2010.
On average, meat prices during 2015 were 15% lower than in 2014 and by December the annual gap was even larger, with the latest quote 23% down on December 2014. Prices for all the main categories of meat fell during December, although poultry meat was the least affected. Reduced import demand for beef from the US has intensified competition on other markets, as well as affecting prices for other meats in the US, including pork. In addition, pig meat prices fell in the EU, due to high production levels relative to demand.
The fall in meat prices was replicated for most other agricultural commodities, with FAO’s food price index reaching its lowest level since April 2009. In real terms, food prices are now the lowest they have been for more than nine years. Cereals prices were also at a 5-year low in December, while dairy and oils were only marginally above recent multi-year lows. Although factors vary between categories, all face a combination of abundant supplies, timid world demand, weak commodity prices and an appreciating US dollar.