The record high global prices for meat will continue to rise in the near future, according to (FAO) in its recent Food Outlook report.
In May, the FAO meat price index reached a new record level. International prices for all types of meat has risen since January this year. Compared with May 2010, the prices increased most in beef and mutton .
Inflation in 2011 appears to be driven by conditions on the supply side. According to FAO, unfavorable weather conditions in late 2010, outbreaks of disease and reconstruction of the animal population and the rising prices of inputs in meat production almost got the global production growth to stagnate. Strong import demand, in combination with less meat for export in the traditional producing countries, is expected to lead to continued rise in meat prices in the short term.
Price Negotiations in Norway
The parties in this year's agricultural negotiations agreed on target cost increases of NOK 1.70 per kg for pigs and NOK 2.05 per kg for lamb. The Agricultural Agreement 2011-2012, which comes into force on 1 July, provides space for increasing prices up to NOK 31.21 and NOK 61.20 per kg respectively till next agreement year.