In August, the meat price index reached a new high, surpassing July's record. The main reasons for the increase were high demand for beef in the USA and China amid a reduction in global livestock, UNN writes with reference to Bloomberg.
Details
Global meat prices reached a new record in August, as strong demand for beef from America and China continued to fuel a multi-month rally at a time when global cattle stocks are shrinking.
According to an FAO report published on Friday, high demand from the US boosted beef prices in Australia. Meanwhile, strong Chinese imports from Brazil helped support that market, despite declining sales to America after higher tariffs were imposed.
The UN Food and Agriculture Organization's index, which tracks meat prices, surpassed the record set in July last month. This increase is already exacerbating inflation in some countries. In July, beef and veal prices in the UK were almost 25% higher than that year.
Other reasons
Cattle farmers in many parts of the world face climate change and diseases, which limits production. America's cattle herd is the smallest in a decade, and its numbers are also shrinking in Brazil, a leading producer, due to increasingly volatile weather.
The beef market is also linked to high dairy prices. With high butter and cheese prices, you won't slaughter your cows to sell them as meat.