The latest Food Outlook report released by the UN Food and Agriculture Organisation (FAO) states that global meat prices were 12% higher in the first quarter of 2010 on-year, driven partly by the rising price of beef, up by 14% over the same period last year.

The report found that beef production was constrained by lower cattle numbers in most large beef producing countries (except some in South America), and it anticipated that there will be some stagnation in global production this year, with aggregate output forecast to reach 64.9 million tonnes - only up slightly on last year's figure of 64.7 million tonnes.

Aggregate beef production is expected to expand in South America this year, with higher slaughterings in Brazil, Paraguay and Uruguay. Increased beef output is also forecast for India due to increased slaughtering of the buffalo herd. Otherwise however, production is forecast to be reduced in the other large beef producing countries such as the US and Argentina.

US beef output is expected to fall by 1% this year.