Cull cows in better demand than luxury beef

The beef prices are rising again. Not only in the Netherlands but also in many other European member states. A tight supply and a good demand for meat scraps ensure that the market is looking up again after a summer correction. However, the supply of cull cows in the Netherlands is expected to rise due to high phosphate prices in the Netherlands and falling milk prices. After a summer dip, the beef prices are on the rise again. The prices of cull cows of first quality have recently climbed back up to €4.45 per kilo at Vee&Logistiek. The prices of the more luxurious qualities are also increasing, but cull cows are relatively in better demand. This is because there is a high demand for meat scraps. The demand for luxury meat cuts has somewhat weakened now that the holiday season is over. Countries like Greece, Spain, and Italy are less active in the market. Expensive phosphate rights The supply of cull cows is limited, but not very tight. The slaughter numbers are rising and in recent weeks more than 10,000 cattle have been slaughtered per week in the Netherlands, which is in line with the long-term average. Seasonally, the supply is expected to further increase in the coming weeks. Traders expect this to be the case again this year. This is partly due to the high price of phosphate rights. Dairy farmers who are short on phosphate space are likely to be more inclined to cull cows, especially since the milk price is heading for a significant correction and the sale of beef slurry is expensive. Tight meat stocks The majority of beef slaughterings in the Netherlands consist of cull cows. There is almost no supply of luxury beef in Western Europe, as various traders indicate. Heavy cattle are being priced at €9 per kilo, which is unprecedentedly high. Towards the end of the year, prices could rise even further, so the thought goes. As long as the sale of meat scraps remains good, additional supply of cull cows in the Netherlands poses no threat to the price. The meat stocks in Europe are low. Furthermore, the winter months are approaching, which benefits consumption. However, it is likely that sales volumes will be affected as consumers opt for cheaper protein sources. In other parts of Europe, the beef market shows a mixed picture. In France and Germany, prices are also rising due to a tight supply and increasing meat prices. In Ireland, on the other hand, prices have been somewhat under pressure since September. However, the Irish quotes have not suffered from a summer dip, which has led the market there to be somewhat overpriced.