European price for Argentine beef rises

The European beef market is on the rise again. So far, the end of the holiday has not led to a drop in demand. Meanwhile, prices on the world market are increasing, with the situation in Argentina temporarily causing disruptions. North European beef prices are showing slight upward momentum again, as can be traced from Eurostat data. The German price has clearly stepped up, and the Polish price is also increasing, bringing prices close to those in the Netherlands. Only the price in Denmark is still stepping back. According to EU reports, prices in the Netherlands remain stable, but from a leading local quotation, it appears that there are still higher prices. The recently updated quotation from Vee & Logistiek shows that prices have risen in the past two weeks. In week 33, the price of O-quality cattle was €5.80, and now the benchmark is 15 cents higher, at a level of €5.95 per kilo. Thus, the price is again approaching the German level, which remained the same according to VEZG in week 35. Market recoversDemand in the North European market is recovering quickly now that the holidays are over. Consumers are predominantly back home, leading to an increase in demand in the area. As a result, both meat and livestock prices are rising again. Despite the higher consumer prices, there appears to be hardly any drop in demand. It is not unusual for the beef market to be less strong after the holidays than before, as consumers often cut back after their vacations. This can sometimes lead to a weaker beef market, while the chicken market benefits from it. This effect was clearly visible in the developments of 2022 and 2023. For now, there are few reasons to assume that the same happens this year. Last year, this phenomenon was also not present. This is likely related to lower inflation and substantial indexing in recent years, which gives a significant number of consumers enough spending capacity to absorb the higher prices. World market responds to new price increaseBesides the European Union, the United States also continues to see significant price increases, according to the most recent data. The latest quotation from the United States Department of Agriculture (USDA) shows that the prices of feeder cattle in August, weighing 500 to 550 pounds, have increased by 43.3% compared to the same month in 2024: from $305.28 per CWT to $437.50 per CWT. This is one of the factors keeping import prices from South America high. However, there is another reason for the higher prices. Specifically in Argentina and Uruguay, fewer cattle suitable for the European market are currently being slaughtered. This is related to a holiday period in Israel, which lasts until about mid-October. During this period, many Israeli slaughter workers who work in these countries go home. As a result, kosher slaughter is temporarily halted, and the available staff is deployed for slaughter for other markets. Although Israel is relatively small, it imports a lot of meat from Argentina and Uruguay due to its low domestic production. The country primarily buys beef scraps in the region. When these are slaughtered kosher, it can yield a premium of around 20%. Because traceability is of great importance for kosher slaughter, cattle that meet the strict European requirements are specifically purchased for this. The European Union has very high requirements for traceability and mainly purchases the luxury parts. Since slaughter during this period is shifted to regular cattle for other markets, part of the volume disappears. The only way to compensate for this loss is to ask for higher prices as a replacement for the lost bonus. One way or another, this phenomenon leads to a premium for meat from South American countries.