The market situation for the meat sector is generally characterised by high nominal output prices, underpinned on the demand side by rising incomes from rapid growth in the developing countries, and on the supply side by high input costs, notably for feed grains, energy related inputs and labour. The combined effect of higher output prices and increased production costs tend to favor production in developing countries, where low input production systems prevail. Meat production growth has slowed, notably for poultry which in the past has experienced the highest rates of output increases. Meat demand in developing countries continues to be strong as higher incomes and urbanisation lead to food consumption changes favouring increased proteins from animal sources in diets. Consumption levels have risen substantially in many emerging economies, particularly in China and other fast growing Asian countries in the last decade. However, per capita meat consumption has been stagnant in the OECD area over the last ten years. While growth in both production and trade is envisaged in the short term for poultry, pig, sheep and buffalo meats, bovine meat markets will initially be constrained by depleted herd numbers in major exporting regions, notably in the developed countries. Developing countries will continue to strengthen their role in dictating changes in global meat production, trade and consumption.