Global Food Prices Edge Up in June 2025 as Meat, Dairy and Oils Drive Gains

The global food prices June 2025 update shows a modest rise. The FAO Food Price Index averaged 128.0 points, up 0.5% from May. Declines in cereals and sugar were outweighed by gains in meat, dairy, and vegetable oils.

Key Commodity Trends

Cereals: The index fell by 1.5%, reflecting strong harvests in Argentina and Brazil. As a result, maize, sorghum, and barley prices dropped. However, wheat prices climbed due to poor weather in the EU, Russia, and the United States. Rice also eased slightly, particularly Indica varieties.

Vegetable oils: Global prices increased by 2.3%. Palm oil rose nearly 5%, supported by strong import demand. Furthermore, soy oil strengthened on expectations of higher biofuel use in Brazil and the USA. Rapeseed oil values climbed due to tight supply forecasts, while sunflower oil eased as Black Sea production improved.

Meat: The Meat Price Index gained 2.1%, hitting a record high. Bovine, pig, and ovine meat prices all moved upward. In contrast, poultry values continued to fall, reflecting ongoing market adjustments.

Dairy: The Dairy Price Index rose 0.5%. Butter reached a new record high because of limited supplies in Oceania and the EU. Cheese prices increased for the third month running. On the other hand, milk powder slipped slightly due to weak global demand.

Sugar: The Sugar Price Index declined by 5.2%, marking its fourth consecutive monthly fall. Improved harvests in Brazil, India, and Thailand drove the drop.

Market Outlook

Overall, the global food prices June 2025 report signals cautious optimism. Prices remain 5.8% higher than June 2024, yet well below the March 2022 peak. Rising meat and dairy values could support trade, but grain and sugar softness may limit wider growth.

Original reporting by Mercopress.

U.S.–China Meat Trade: Exports Plummet Amid High Tariffs and Regulatory Barriers – July 2025

The U.S.–China meat trade has experienced a dramatic downturn in 2025. Pork and beef exports to China have fallen sharply due to persistently high tariffs and unresolved regulatory issues. According to the U.S. Meat Export Federation, May 2025 marked one of the steepest year-on-year declines in recent trade history.

Key Factors Behind the Collapse in U.S.–China Meat Trade

• U.S. pork exports to China dropped 82 per cent year-on-year to just 6,720 metric tonnes, with export value down 77 per cent to $20.7 million.
• Beef exports to China fell 91 per cent in volume and 90 per cent in value, totalling under 1,400 metric tonnes and less than $15 million.
• Tariffs peaked in April at 172 per cent for pork and 147 per cent for beef. Although a temporary 90-day easing was announced in mid-May, rates remain high at 57 per cent for pork and 32 per cent for beef.
• China has not renewed export registrations for many U.S. beef plants and cold storage facilities, rendering large volumes of U.S. beef ineligible for export

Broader Trade Impacts and Global Market Shifts

Despite the sharp decline in the U.S.–China meat trade, U.S. meat exports remain strong in other regions:

• Pork exports to Mexico, Central America, Colombia, and Cuba are on a record pace.
• Beef exports to South Korea reached their highest monthly volume in over two years.
• Strong demand continues in Latin America, the UAE, and Africa.

Industry leaders warn that unless progress is made in U.S.–China trade negotiations before the 12 August tariff deadline, exporters may further reduce production for the Chinese market.

For related updates, see our coverage on the China–Brazil poultry trade and Australian beef exports.

China–Brazil Poultry Trade: Chicken Imports May Resume – July 2025 Update

The China–Brazil poultry trade may soon resume, as Chinese authorities consider lifting restrictions on chicken imports from Brazil. This development follows recent discussions between Brazil’s Agriculture Ministry and Chinese officials, aimed at restoring trade flows and stabilising domestic meat supplies.

Brazil is one of the world’s largest poultry exporters, and China has historically been a key market. Imports were suspended earlier this year due to sanitary concerns, including a confirmed outbreak of bird flu in May 2025. The potential reopening of trade would mark a significant shift in global poultry supply dynamics.

Trade Implications for the China–Brazil Poultry Market

If China resumes chicken imports from Brazil:

• Brazil’s poultry sector could regain lost market share and boost export volumes.
• Competing exporters such as the United States and Thailand may face increased pressure.
• Chinese buyers would benefit from access to Brazil’s long shelf-life frozen chicken products.
• Regional poultry prices and supply chains could be affected.

The Brazilian government remains optimistic, citing ongoing technical discussions and China’s rising demand for high-quality protein.

For related updates, see our coverage on Australian beef exports and livestock market closures in Turkey.

Source: Reuters

Australian Cattle and Sheep Markets Surge as Prices Hit New Highs – July 2025

The Australian cattle and sheep markets experienced a sharp rise in early July 2025, with several key price indicators reaching record highs. According to the latest report from Meat & Livestock Australia (MLA), strong processor demand and tightening supply are driving the surge across both sectors.

Cattle Market Highlights

The Australian cattle market posted significant gains across multiple categories:

• The Feeder Steer Indicator rose by 20 cents to 417¢/kg liveweight, surpassing the Restocker Steer Indicator by 17 cents.
• Heavy Steer prices increased by 23 cents to 373¢/kg liveweight, supported by limited supply and strong processor interest.
• Queensland recorded the largest price increase at 29 cents, while New South Wales saw a more modest rise of 6 cents.
• National cattle slaughter reached 158,922 head, the highest weekly total since December 2019, with Queensland leading the surge.

Sheep Market Highlights

The Australian sheep market also saw strong upward momentum:

• All lamb indicators reached record highs, with the Heavy Lamb Indicator jumping 68 cents to 1,099¢/kg carcase weight.
• The Trade Lamb Indicator rose by 48 cents to 1,072¢/kg carcase weight.
• The Merino Lamb Indicator increased by 73 cents to 936¢/kg carcase weight, with trade weights fetching up to $232 per head at Dubbo.
• Sheep and lamb yardings fell by over 19,000 head, and slaughter numbers dropped by nearly 92,000 due to processor maintenance shutdowns.

Market Outlook

Despite seasonal tightening in supply, strong demand from both restockers and processors continues to fuel competition and price growth. The Australian cattle and sheep markets are expected to remain firm in the short term, supported by favourable export conditions and limited global supply

Original data sourced from Meat & Livestock Australia 

Australian Beef Exports Hit Record Highs Yet Again – July 2025

Published: 4 July 2025 | Meatex News Desk

The Australian beef export market has once again reached record levels, according to the latest data from Meat & Livestock Australia (MLA). In July 2025, Australia exported 150,435 tonnes of beef, marking a 12 per cent increase on June’s previous high and a 16 per cent rise compared to July 2024

Key Drivers of Export Growth

This is the fourth time in a year that Australia has broken monthly beef export records. Several factors are contributing to this sustained growth:

• High slaughter volumes: Weekly cattle slaughter has consistently exceeded 150,000 head since April.
• Heavier carcase weights: Average adult cattle carcase weights reached 313kg in Q1 2025.
• Global supply constraints: Declines in beef exports from Argentina, the United States, New Zealand, and Canada have opened up market share for Australia.
• Strong demand: Key markets such as China, Japan, South Korea, and the United States continue to show robust demand for chilled and frozen Australian beef.

Competitive Advantage

Australia’s ability to supply consistent, long shelf-life beef products has strengthened its position in global markets. The country’s export performance is being further supported by tight supply conditions among competitors and favourable seasonal processing conditions.

Market Outlook

Looking ahead, analysts are watching for potential shifts in Brazil’s cattle cycle, which could affect global supply dynamics. Seasonal conditions in Australia will also play a role in determining whether record export volumes can be sustained into the final quarter of 2025.

Original reporting by Meat & Livestock Australia 

FSA Guidance July 2025 – Key Updates for UK Processors

What Is Mechanically Separated Meat (MSM)?

Key Points from the Updated Guidance

• Labelling: Businesses must list MSM separately from meat in ingredient declarations. They cannot include it in the total meat content.
• Traceability: Companies must keep clear records of MSM sourcing and usage throughout the supply chain.
• Imports: Importers must declare MSM correctly at the border and ensure products meet UK standards.
• Compliance: The FSA will monitor retail and foodservice products to ensure accurate classification and transparency.

Industry Impact

Original guidance available via the Food Standards Agency 

See also: FSA Appoints Two Businesses for Meat Inspections in the UK

Turkey Temporarily Closes Livestock Markets Nationwide Amid Foot-and-Mouth Disease Outbreak

Published: 2 July 2025 | Meatex News Desk

The Turkish livestock market has been temporarily shut down following a resurgence of foot-and-mouth disease (FMD). The Ministry of Agriculture and Forestry announced the nationwide closure of livestock markets in an effort to contain the spread of the highly contagious virus among cloven-hoofed animals

Key Measures Introduced

To prevent further transmission of the disease, Turkish authorities have implemented the following measures:

• Closure of all livestock markets across the country
• Restrictions on animal movement in affected regions
• Intensified vaccination campaigns in high-risk provinces
• Enhanced surveillance and biosecurity protocols at farms and transport hubs

These steps are part of a coordinated national response to limit the economic and animal health impact of the outbreak.

Impact on Trade and Producers

The timing of the outbreak is particularly concerning, as it follows Kurban Bayramı (Eid al-Adha), a period when livestock sales typically surge. The restrictions have raised concerns among domestic producers and exporters, who fear long-term disruptions to trade and productivity.

Authorities are urging farmers and traders to comply with the new regulations to avoid further spread and economic losses. While foot-and-mouth disease does not pose a risk to human health, it can cause severe damage to livestock productivity and international trade.

Original reporting by Reuters.

European Beef Production Falls by 56,000 Tonnes in Q1 2025

The European beef market experienced a notable decline in production during the first quarter of 2025. According to the latest data from the Agriculture and Horticulture Development Board (AHDB), total beef output across the European Union fell by 3 per cent compared to the same period in 2024. This equates to a reduction of 56,000 tonnes, bringing total Q1 production to 1.58 million tonnes

Key Drivers Behind the Decline

The most significant production drops were recorded in France, Germany, and the Netherlands. These countries were severely affected by the Bluetongue virus (BTV-3), which disrupted herd health and productivity. Structural herd reductions and ongoing profitability challenges also contributed to the downturn.

In contrast, Poland and Ireland reported increased beef production. This growth was driven by strong domestic prices and sustained export demand, with Poland exporting 133,000 tonnes of beef in Q1 2025, up from 125,000 tonnes in the same period last year

Trade and Market Implications

Despite the decline in production, EU beef demand remains strong, prompting a rise in imports. EU-27 beef imports increased by 11 per cent year-on-year in Q1, reaching approximately 77,000 tonnes. The United Kingdom remains the largest beef supplier to the EU, followed by significant growth in imports from South American countries.

• Brazil: +2,200 tonnes (+12% YoY)
• Argentina: +2,500 tonnes (+23% YoY)
• Uruguay: +1,700 tonnes (+22% YoY)

Outlook for UK Exporters

With EU production tightening and demand holding firm, UK beef exporters may find new opportunities to expand their market share on the continent. The current supply gap could favour British beef, especially as EU buyers seek reliable sources to meet demand.

Original data sourced from AHDB 

Stornoway Abattoir Faces Uncertain Future – June 2025

The Stornoway abattoir future June 2025 remains unclear as falling usage and rising costs challenge the viability of the facility. Operated by Comhairle nan Eilean Siar, it is the UK’s only local authority-run abattoir.

Declining Use and Rising Costs

The abattoir fell short of its £184,000 income target last year. At a recent transport and infrastructure committee meeting, Lochs councillor Angus Morrison warned crofters to make greater use of the facility. He said bluntly: “It is either use it or lose it.”

Slaughter fees are due to increase by 5%, pushing the cost of processing a sheep to around £44. Morrison stressed that the price rise is necessary for long-term sustainability.

However, officials also reported that some crofters are slaughtering livestock at home, bypassing the site. A wider decline in sheep numbers across the Western Isles is also reducing throughput.

Local Concerns

Councillor Donald Crichton noted that bureaucratic hurdles are discouraging crofters from expanding flocks. This adds further pressure on the abattoir. Last year, the council provided £50,000 from Crown Estate funding to keep the facility running. It also delayed the seasonal opening to save an additional £14,000.

Market Outlook

The future of the Stornoway abattoir now depends heavily on community support. Local leaders argue that without greater use from crofters, the abattoir risks closure. For rural communities in the Outer Hebrides, that could mean losing a vital local service.

In summary, the Stornoway abattoir future June 2025 update shows an industry under pressure. Costs are rising, numbers are falling, and survival depends on increased support from crofters and farmers.

Source: BBC News. 

Australian Sheep Meat Industry Booms with Record Prices and Export Growth

The Australian sheep meat industry June 2025 is enjoying record highs. Prices and exports are surging, marking a sharp recovery from the oversupply crisis of 2023.

Strong Export Growth

In the first five months of 2025, exports of Australian sheep meat jumped by 40% year-on-year. According to Reuters, this growth reflects tight global supplies and rising demand, especially from the United States and China.

Improved weather and stronger pasture availability have also supported the rebound. Farmers are rebuilding herds strategically after a difficult 2023, when oversupply drove prices to unsustainable lows.

Record Prices

Meat & Livestock Australia (MLA) confirmed that lamb prices have reached unprecedented levels, with average export values climbing steadily. The U.S. has now become the top buyer of Australian lamb. At the same time, China remains the primary market for mutton, underlining the importance of diversified export channels.

Industry Outlook

Industry analysts believe this positive momentum could last through the second half of 2025. However, the outlook depends on continued strong demand and Australia’s ability to maintain its competitive edge in both quality and supply chain efficiency.

For many farmers and exporters, this resurgence brings welcome relief. Just two years ago, the sector faced heavy financial pressure from oversupply and weak global demand.

Sector Resilience

Overall, the Australian sheep meat industry June 2025 update demonstrates resilience in the red meat sector. With exports rising and prices hitting records, Australia has reinforced its role as a leading global supplier of lamb and mutton.

Original reporting by Reuters.