Eoin Kelly, Business Analyst, Bord Bia – Irish Food Board

World meat production is set to show modest growth in 2014 on the back of growing demand, with a similar rise forecast for next year, according to findings from the annual GIRA meat conference taking place this week.

World meat production is set to increase by just below 1% this year to reach 269.9 million tonnes, driven mainly by increased poultry and pigmeat production. Looking towards 2015, a further modest increase of 1.3% in production is forecast to reach 273.3 million tonnes. Bumper harvests in both the northern and southern hemispheres have seen feed costs decrease, which has helped production levels. Similarly, grass growth has increased in many of the pasture producing areas as a result of favourable climate conditions. In the short term, world feed costs are expected to remain lower than recent levels.

Global meat demand has shown some increase, driven by rising consumption in Asian and Middle Eastern countries. Rising economic growth in these countries has led to a rise in demand, with high economic growth forecast again next year. For example, China is expected to see a GDP growth of 7.3% this year with an additional growth of 7% forecast next year.

Beef consumption and pigmeat consumption are expected to stay relatively stable in 2015. Poultry consumption is expected to see the largest growth rate, a 3.1% growth expected this year and a 2.7% growth forecast for next year.

Key export destinations for meat continue to be Asia, the Middle East and North Africa. Meat imports to China are forecast to rise over 8% next year, with a rise of almost 3% forecast for the Middle East and North Africa.

In terms of meat exporters, the US is showing a modest growth, with Brazil in particular showing a rise in exports on the back of a weaker Brazilian Real. Brazilian meat exports across all categories are showing some growth this year on the back of rising demand from Russia, with exports forecast to increase by almost 5% next year.

For more information click here.