German cattle price higher due to inefficient chain

The beef market remains tight and as a result, prices are rising again. Especially in Northern Europe, the market is picking up. In Germany, inefficiencies caused by the many parallel animal welfare systems are leading to a strong price increase. In Ireland, prices are structurally declining, while the Netherlands is showing a clear upward trend: beef prices are now above the level of Poland. With the continued decline in Ireland and the further increase in Germany, the Irish price level is now approaching that of Germany. Lowest prices in Italy In Southern Europe, there is a limited price increase, with the exception of Italy where prices fell sharply. Between week 36 and week 37, prices for bulls of R-quality dropped by 8.7%, from €684.66 to €625.42. As a result, Italy is recording the lowest beef prices in Southern Europe. The momentum in the beef market remains strong. Especially in the Netherlands and Germany, demand is robust. Minced meat is, just like before the summer holidays, one of the most requested products. Prices have risen again to above €8 per kilogram, which creates strong demand for cull cows. However, it is expected that supply will increase because milk prices have been under pressure in recent weeks. This makes it more attractive for farmers to send less productive cattle for slaughter. Additionally, it is expected that demand from supermarkets will further increase in the short term. Starting from week 40, they will switch to the winter assortment, which is favorable for the beef sector. Stewing cuts such as chuck rolls will then receive more attention. In the summer, these often end up in minced meat, where the margins are significantly lower. Proliferation of animal welfare systems According to market experts, the price increase in Germany is related to the various animal welfare initiatives. There are multiple systems operating simultaneously, making production difficult to balance. Cattle are often purchased in groups of about 30 animals, where pairs consist partly of concept cattle and partly of conventionally kept animals. Even when there is no demand for concept cattle, or specifically demand for animals from another concept, slaughterhouses must take the entire group. Due to the current tightness, market power lies with traders. They can charge storage fees, even if there is little demand for the cattle.