Rising Raw Material Prices in 2025 Squeeze Margins in the Meat Industry

The increase in raw material prices in 2025 is putting pressure on profit margins for meat processors. The cost of pork on the European market has risen by 8–10% compared to 2024, while beef prices have increased by approximately 5%. These hikes directly affect production costs and, ultimately, retail prices.

Slaughterhouses and processors are responding by:

• Optimizing the supply chain – negotiating long-term contracts with local and regional suppliers.
• Reducing technological losses – modernizing processing lines to increase efficiency.
• Diversifying product portfolios – introducing assortments with a higher share of poultry meat, which is cheaper than pork or beef.
• Increasing exports – to better capitalize on the finished product in international markets.

A Eurostat study reveals that the food industry in Eastern Europe has low demand elasticity: a 10% increase in meat prices leads to only a 3–4% drop in consumption. This gives processors some leeway to adjust prices without major volume losses, but competitive pressure remains high.

In the medium term, the only sustainable strategy will be vertical integration – gaining greater control over primary production, processing, and distribution – in order to reduce dependency on international price fluctuations.

(Photo: Freepik)