Meat Prices Surge Globally, Countering Food Index Drop

Global food prices edged down slightly in September 2025, but soaring meat costs pushed the Food and Agriculture Organization’s (FAO) Food Price Index higher, underscoring persistent global food inflation.

According to the FAO, the index averaged 128.8 points in September, down from 129.7 in August, but 3.4% higher than a year earlier.  Although nearly 20% below its March 2022 peak, the index shows signs of resistance to further declines. The FAO reported that lower prices for cereals, dairy, vegetable oils, and sugar were partially offset by a sharp increase in meat prices, which hit their highest level since records began.

“Meat has become the main factor preventing a sharper decline in the global food price index. Strong demand, combined with elevated feed and transport costs, continues to pressure the market,” the FAO said.

Meat Prices Hit Record Highs

The FAO Meat Price Index rose 0.7% month over month and 6.6% year over year, reaching a record high driven by robust global demand and tight supply. Beef and lamb prices led the increase, while pork and poultry remained stable.

“The increase reflects a combination of reduced export availability from major producing countries and sustained global import demand. Animal disease outbreaks and persistent uncertainties around trade policies have further intensified price volatility,” said Monika Tothova, Senior Economist, FAO, in an interview with BBC Mundo. 

Tothova added that some importers have been stockpiling meat to hedge against potential trade disruptions, while droughts and extreme weather have affected livestock production in several regions.

The beef market has been hit particularly hard. Limited cattle inventories in the United States, Brazil, and Oceania have tightened global supply.

“The US cattle stock is at its lowest level in 70 years. Producers are sending fewer cows to slaughter in an effort to rebuild herds,” said Andrés Oyhenard, analyst, Tardáguila Agromercados consultancy.

Beef prices have also been affected by trade policies. Oyhenard noted that Brazilian beef exports to the United States have slowed following the 50% tariff imposed by President Donald Trump, though strong demand from other markets has helped offset the impact.

Data from the World Beef Report show that the price of slaughter-ready cattle rose 54% in the European Union, 33% in the United States, 26% in Brazil, and 17% in Mexico compared with September 2024. While these figures reflect producer-level increases, the FAO emphasized that consumer prices vary depending on import shares, taxes, transportation costs, and market competition.