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Meat prices to decline in real terms, says new report

Simon KingBy Simon KingJuly 17, 20191 Min Read
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Meat prices are projected to decline over the next decade, according to the latest OECD-FAO Agricultural Outlook.

fao-outlook

This reflects slower growth in meat consumption and expanding supplies. However, feed grain prices are expected to be low relative to the previous decade. So, meat-to-feed price margins generally remain within historical levels.

Despite an overall downward trend, pig prices are expected to remain cyclical over the next decade. Increased supply from Brazil and the US will be important, alongside higher import levels. Pig meat consumption is expected to decline on a per capita basis, as several developing countries are not traditional pork consumers.

AHDB analyst Rebecca Oborne said: “Notably, the report is rather more conservative when anticipating the impact of ASF in China than other analysis. Chinese pork production is only forecast to decline by 5% this year and subsequently recovers in 2020.

“In contrast, USDA, Rabobank and GIRA forecasts range from a 10-35% decline this year, taking much longer to recover. As such, it is possible the report underestimates the impact of this epidemic in the outlook. There is also uncertainty surrounding the impact of existing or future trade arrangements, and the potential for changing consumer attitudes to meat consumption.”

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Previous ArticleChina to investigate efforts made to control ASF
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Simon King

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