FAO Meat Price Index down in January

The FAO Meat Price Index averaged 123.8 points in January, down 0.5 points (0.4%) from December, but still 7.1 points (6.1%) above its level a year earlier. The decline mainly reflected lower international pig meat prices, while quotations for bovine and ovine meats remained broadly stable. By contrast, world poultry meat prices increased.

Pig meat prices dropped largely due to softer quotations in the European Union amid subdued international demand and ample supplies, including the clearance of backlogs associated with temporary abattoir closures during the end-of-year holidays.

Despite relatively tight supply conditions, world ovine meat prices remained largely stable, as seasonal demand softened following high end-year purchases.

Bovine meat prices were also broadly stable, amid shifts in Brazilian exports to other destinations following the rapid exhaustion of the United States of America tariff-free quota and the subsequent application of the 26.4 percent out-of-quota tariff. Shipments were increasingly redirected toward China, where importers accelerated purchases to secure volumes ahead of the announced beef safeguard quota, offsetting potential downward pressure on Brazilian prices.

Meanwhile, poultry meat quotations rose, mainly reflecting higher prices in Brazil underpinned by strong international demand.