Global Meat Prices Reach Record Levels: Reasons for the Increase

In 2025, meat prices worldwide continue to set records. According to the FAO, since the beginning of the year, the average meat price index has risen by nearly 10%. Specifically, in August, this figure reached around 128 points, marking the highest value in the history of the indicator for over 30 years. Beef and lamb have seen the largest price increases, while prices for pork and poultry have remained almost unchanged.

This is reported by AgroReview

Reasons for the Increase in Global Meat Prices

FAO experts note that the main factors driving up costs are supply shortages in key exporting countries combined with sustained global demand for imports. Additional influences include outbreaks of animal diseases, trade restrictions, climate change, and extreme weather events that affect the production chain. In response to market fluctuations and supply disruption risks, several importers have begun to build up meat stocks.

The rise in beef prices is attributed not only to reduced exports from Brazil and the USA but also to the increasing costs of energy, labor, transportation, and livestock feed. Entrepreneurs are also facing high interest rates, which raise the cost of loans for agricultural businesses.

Market Impact and Trade Policy

In many countries, the meat market is concentrated in the hands of a few large meat processing companies, which enhances their ability to influence prices and reduces competition levels. Furthermore, the situation is complicated by uncertainty in trade policy—such as the introduction of new tariffs, sanitary restrictions, or changes in international trade agreements.

In recent years, beef supplies from the USA have significantly decreased. The cattle population in this country is currently at its lowest in 70 years. At the same time, there are early signs of stabilization, as fewer cows are being sent for slaughter to rebuild the herd in a process known as animal conservation. However, a full recovery of cattle numbers is not expected until at least mid-2027.

Brazil, the leading exporter of beef, is also gradually transitioning to a herd conservation phase to support future export volumes. Brazilian beef prices are rising due to high global demand, which compensates for the decrease in exports to the USA following President Donald Trump’s imposition of a 50% tariff.

Overall, beef prices are rapidly increasing in many countries around the world. According to the World Beef Report (WBR), in September of last year, the price of a fattened bull or steer increased compared to September of the previous year: by 54% in the EU, 33% in the USA, 26% in Brazil, and 17% in Mexico.

“According to the World Beef Report (WBR), in September, the price of a fattened bull or steer increased compared to September of the previous year by 54% in the EU, 33% in the USA, 26% in Brazil, and 17% in Mexico.”

It is worth noting that the final consumer price does not always rise proportionally to raw material prices, as it is influenced by import volumes, taxes, logistics costs, supply structure, and the level of competition between meat producers and retail.