Global meat prices fall again
Latest figures from the UN FAO show that global meat prices in 2016 were, on average, 7% lower than in 2015.
After reaching a six-year low during March, there was some modest recovery during the middle of 2016. However, prices then stagnated, dropping back 2% after reaching a peak in August. The largest price falls for the year as a whole were recorded for bovine and poultry meat, due to challenging trade and too much supply in the market. Pig meat was less affected, due to falling supplies and strong demand from China.
However, pork prices are likely to experience more pressure looking forward, as Chinese demand slows while abundant US supplies enter the global market.
Conversely, the price of sugar and vegetable oils rose significantly in 2016, as a result of tightening supplies. However, despite some recovery as the year progressed, dairy prices remained below year earlier levels. Cereals prices were also below 2015 and almost 40% below the 2011 peak. Altogether, this meant overall food prices were 1% below year earlier levels during 2016, the fifth consecutive year of decreasing food prices.
Bethan Wilkins, Trainee Analyst
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