Increasing Production Means Market Competition

GLOBAL - Driven exclusively by gains in poultry and pigmeat production, global meat output is set to expand by nearly two per cent to 302 million tonnes in 2012, according to the FAO Global Food Outlook..
calendar icon 4 May 2012
clock icon 2 minute read

Most of the sector growth is likely to originate in the developing countries, as developed countries may witness a second year of slipping output as profitability stumbles in the face of high input costs, stagnating domestic meat consumption and severe competition from developing countries.

The struggle for markets is expected to intensify in 2012 as increased production in key importing countries slows down global meat trade expansion.

This, combined with limited supplies in developed exporting countries, is shifting international market shares towards developing countries, in particular Brazil and India.

Drought in the Unites States, the major world meat exporter, and limited animal numbers in other exporting countries have kept international meat prices at near record levels in the first quarter of 2012.

At 182 points in April, the FAO meat price index was up from March, supported by persistent gains in bovine and pigmeat prices. Slowing global import demand and two years of stagnating consumption in developed countries may imply less price pressure in 2012; however, meat production this year will hinge critically on feed prices and the animal disease situation.

Charlotte Johnson

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