06.05.2024, 16:30

Why is meat becoming more expensive? Analyzing prices and market factors in April


Global meat prices showed a 1.6% increase in April this year, reaching 116.3 points on the FAO Meat Price Index, up 1.9 points from March's level. Nevertheless, the index remains 0.4% lower compared to April of the previous year, as noted by the Food and Agriculture Organization of the United Nations Monthly Review.


Particular growth was seen in the poultry sector, with demand for which demand has been consistently strong in the Middle East despite production problems associated with bird flu outbreaks. Beef prices also continued to rise thanks to steady demand from major importing countries, despite increased supply in domestic markets. At the same time, the lamb market showed some price recovery due to the expected seasonal reduction in supply from Oceania.


On the other hand, world pork prices declined slightly, reflecting weak domestic demand in Western Europe and persistently weak demand from leading importers, particularly China.


In addition, the FAO Food Price Index stood at 119.1 points in April, up 0.3% from March. The recorded decrease in prices concerns sugar and dairy products. At the same time, price growth, although to a lesser extent, was observed for vegetable oils and cereals. It should be noted that the average value of the Cereals Price Index in April was 18.3% lower than a year earlier, despite the stabilization of world export prices for wheat. This was due to concerns about weather conditions affecting crops in a number of regions, including the European Union, Russia and the United States, which, however, were partially neutralized by active competition between major exporters.


The vegetable oil price index reached its highest level in 13 months, settling at 130.9 points, up 0.3% from the previous month. The growth was caused by an increase in quotations for sunflower and rapeseed oils, while prices for palm and soybean oils showed a decrease.