Cattle farmers in many parts of the world are dealing with climate change and disease, curbing production. The American herd is the lowest in decades …
Global meat prices hit a fresh record in August as strong American and Chinese demand for beef continued to fuel a monthslong rally at a time when global cattle supplies have been dwindling.
A United Nations’ Food and Agriculture Organization index tracking the price of meat last month surpassed the record set in July. The surge is already worsening inflation headaches in some countries. In July, consumer prices for beef and veal were almost 25% higher in the UK.
Cattle farmers in many parts of the world are dealing with climate change and disease, curbing production. The American herd is the lowest in decades and numbers are also tightening in top shipper Brazil, with increasingly volatile weather adding to the challenges to rebuild.
For beef, strong demand from the US boosted Australian prices, according to the FAO’s report on Friday. Meanwhile, good Chinese imports from Brazil have helped support that market despite lower sales to America after higher levies kicked in.
The higher costs of dairy products is also weighing on supply as fewer cattle are available for slaughter.
“The beef meat market is also linked to the fact that you have a high dairy prices,” said Monika Tothova, an economist at the FAO. With high butter and cheese prices “you will not slaughter your cows to sell them as meat.”