Skyrocketing Beef Prices Hits a New High

The Food and Agriculture Organization (FAO) recently published its monthly report on global food prices, revealing a mixed picture for August 2025.

The FAO Food Price Index remained virtually unchanged from July, bucking the trend of fluctuating prices seen in previous months. Cereal prices, however, experienced a slight decline, dropping by 0.8% from July and 4.1% from August 2024. This decrease was supported by higher yields in the European Union and Russia.

Pork prices remained relatively stable in August, but the report does not provide details on the reasons for this stability. On the other hand, poultry prices saw a decline, attributed to large export volumes from Brazil.

The most notable rise in prices was observed in the meat category, with the FAO's monthly meat price index reaching a record 128 points in August, an increase of 0.7 points (0.6%) from July and 5.9 points (4.9%) from the previous year. The rise in beef prices was the primary driver of this increase, offsetting the decline in poultry prices. The FAO's data indicates that beef prices in August were boosted by prices in Australia.

In contrast, lamb prices continued their upward trend, rising for the fifth consecutive month. The rise in lamb prices is due to reduced export supply in Oceania and increased volumes to more profitable markets like the United Kingdom and the United States.

The report also noted that export prices in Brazil remained high despite reduced volumes, due to additional tariffs, according to the FAO. Some of Brazil's major trading partners have not lifted import restrictions despite declaring poultry farms free from highly pathogenic avian influenza.

Looking ahead, the next release of the FAO Food Price Index is expected in mid-September 2025. The report does not provide any specific reasons for the decline in poultry prices in August or the stability of pork prices. Additionally, the report does not include information about lamb prices for August or pork prices other than their stability in August.