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Meat prices keep rising despite downward trend for food prices in general

PW ReportersBy PW ReportersSeptember 11, 20142 Mins Read
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Meat continues to “buck the trend” by rising in price in August while global food prices in general fell for the fifth consecutive month, according to BPEX.

Quoting the latest food price index from the UN Food & Agriculture Organisation (FAO), BPEX point out that food prices are now at their lowest point since September 2010.  They also observe, however, that the meat price rise is largely driven by a “surge in Australian beef prices” with pork and sheep meat actually falling slightly.

FAO’s August figures show the average monthly food price index being almost 4% down from both the previous month and a year ago, mainly as a result of falling dairy prices in the latest month, along with lower sugar, cereals and vegetable oil prices.

Meat prices, meanwhile, were 1% higher in August than July, which put them 14% above last year’s August level.

“Within the meat category,” said BPEX, “pork and sheep meat monthly averages fell back slightly, while poultry quotations were almost unchanged. However, higher overall meat prices were largely driven by a surge in Australian beef prices. Lower availability due to herd rebuilding following the recent drought, combined with increased import requirements from Asia, added support and this translated into higher beef prices on an international level.”

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