Global meat prices have surged to unprecedented levels, with the United Nations Food and Agriculture Organization (FAO) reporting that its Meat Price Index hit a new record in August 2025. This milestone, which follows a steady climb throughout the year, is being felt by consumers and producers alike across continents. The index, which uses an average of 2014-16 prices as its baseline, rose 0.6% last month to reach 128 points—up 4.9% from August 2024 and surpassing the previous record set just in July.
What’s driving this relentless upward march? According to the FAO and financial outlets like Bloomberg, the primary culprits are robust demand for beef in the United States and China, coupled with shrinking global cattle herds. The result: a global bidding war for fewer cows, with ripple effects reaching dinner tables in the UK, the Americas, and beyond.
“Strong demand from the United States of America boosted Australian quotations, and firm import demand from China kept Brazilian export prices firm despite reduced sales to the United States of America following the imposition of additional tariffs,” the FAO explained in its latest analysis. This dynamic has made bovine meat prices the standout, reaching a record high in August. Meanwhile, tight export supplies in Australia and New Zealand have pushed ovine (sheep) meat prices up for the fifth consecutive month, with particularly strong demand from the US and UK.
The pain is already showing up at the checkout. In the UK, beef and veal prices were almost 25% higher in July 2025 compared to the previous year, according to UNN citing Bloomberg. That sort of sticker shock is not isolated—consumers in other regions are also feeling the squeeze as the meat rally continues.
On the supply side, the story is equally dramatic. The US cattle herd is now at its smallest in a decade, a trend echoed in Brazil, the world’s leading beef exporter, where volatile weather and disease have hampered herd recovery. “Cattle farmers in many parts of the world face climate change and diseases, which limits production,” reported UNN. This squeeze on supply is exacerbated by broader global trends: as climate change intensifies and disease outbreaks become more frequent, rebuilding herds is becoming a slower and riskier process.
Australia, too, has seen its cattle prices buoyed by American buying. With US demand so high, Australian beef is fetching premium prices, and the same pattern holds for lamb and mutton exports, which have been snapped up by buyers in the US and UK. Meanwhile, Chinese imports from Brazil remain robust, even after the US imposed higher tariffs on Brazilian beef. Despite these tariffs, Brazilian export prices have stayed firm, thanks to Chinese demand.
But the meat market isn’t moving in lockstep across all categories. Global pork prices have remained relatively stable, as supply and demand are well balanced. Poultry, on the other hand, is bucking the trend: global chicken prices actually declined in August, dragged down by oversupplies in Brazil. Brazil is still recovering from an avian flu scare that hit its poultry industry in May and June, and the resulting glut has depressed international prices even as other meat categories soar.
For those tracking the broader food economy, the FAO Food Price Index—which includes not just meat but also dairy, cereals, vegetable oils, and sugar—was practically unchanged in August at 130.1 points. That’s up 6.9% from a year ago, but still down 18.8% from its historic peak in March 2022. Dairy and cereal prices actually fell last month, with the rise in meat, vegetable oil, and sugar prices balancing out the index.
But there’s a twist in the beef market that even seasoned Wall Street analysts might have missed. Surging dairy prices—especially for cheese and butter—are further limiting beef supply. As FAO economist Monika Tothova put it, “With cheese and butter fetching high margins, producers are holding onto dairy cows rather than sending them to slaughter.” In other words, when milk products are lucrative, farmers are less inclined to cull their herds for beef, tightening meat supplies even more. This bottleneck could persist, especially if dairy prices remain high.
Looking at the factors in play, it’s clear that the meat price rally is the product of a perfect storm: relentless consumer demand, shrinking herds, climate woes, disease outbreaks, and shifting incentives for livestock producers. Investors and analysts watching the protein trade—whether through major companies like Tyson Foods or ag-linked ETFs—are paying close attention. If herd rebuilding remains slow and demand stays strong, as many experts expect, the meat rally may have more room to run.
The situation has also been complicated by policy moves. Higher US tariffs on Brazilian beef have shifted trade flows but haven’t dampened Chinese demand for Brazilian exports. Meanwhile, the UK’s own experience with soaring beef prices underscores how global trends can quickly translate into local inflation, adding to the cost-of-living pressures already facing many households.
It’s not all doom and gloom, though. Pork lovers can take some comfort in the fact that global pork prices have been stable, thanks to a balanced market. And for those who prefer chicken, the recent oversupply in Brazil has made poultry more affordable, at least for now. But for beef and lamb, the outlook remains challenging.
What’s next for the world’s meat markets? Much depends on how quickly cattle herds can be rebuilt, how climate and disease risks are managed, and whether demand from the US and China remains as voracious as it’s been. If history is any guide, these are not problems with easy or quick fixes. As the FAO’s data and industry analysts suggest, shoppers and producers alike should brace for continued volatility—and, quite possibly, even higher prices ahead.
For now, one thing is clear: the global meat market is in the midst of a seismic shift, with consequences that reach from the farm to the family dinner table. The interplay of supply, demand, and global trade is creating a new normal, and everyone with a stake in the world’s food system is watching closely to see what happens next.
