May 9, 2012

World meat production up by 2%

World meat output is expected to rise by 2% this year due to a boost by higher poultry and pig meat production in developing countries, the United Nations Food and Agriculture Organisation (FAO) revealed.

Global production should reach 302 million tonnes, but countries will struggle for markets as increased output in developing countries slows down trade expansion, the FAO added. "This, combined with limited supplies in developed exporting countries, is shifting international market shares towards developing countries, in particular Brazil and India."

However, the meat industry could be affected by lower soya supplies, down a record 10% on-year. Other oil crops will partly compensate the drop, but overall oil-crop production is expected to reach a three-year low, down 4% from last season, leading to high animal feed prices.

The FAO recorded a 1.4% fall in global food prices between March and April 2012 - the first drop after three consecutive months of increases - but said that prices seemed to have stabilised at a relatively high level.

"It noted that the prospects for the second half of this year and into the next indicate generally improved supplies and continuing strong demand. Consequently the global food import bill in 2012 could decline to US$1.24 trillion, down slightly from last year's record of US$1.29 trillion," the organisation said.