Christmas demand for beef remains limited

The beef price remains relatively stable for now. This is due to the higher Christmas demand. Nevertheless, the holidays do not offer the success that one would expect. In particular, Ireland is struggling. The European beef prices have been fairly stable in the weeks leading up to Christmas. The carcass price of young bulls of R-quality has decreased by €1.35 per 100 kilos. Meanwhile, the price of meat from O-quality cattle has shown a slight recovery. The pattern fits the approaching holidays. Much of the luxury meat of the higher qualities has already been sold, as this meat has a slightly longer aging period. Meanwhile, O-quality meat is in demand for the supply of supermarkets; this remains sought after for last-minute stocking. The price of lean beef trimmings continues to drop, but this is compensated in the O-segment by good sales of more luxurious cuts. In particular, the sales of fillet steak remain strong during this time of year. Especially in Southern Europe and Germany, we see that beef prices continue to rise. In these countries, it is not just about O-quality meat, but also about R-quality meat from young bulls. In these countries, the demand for more luxurious beef during this time of year is particularly strong. On average, the holidays are keeping the beef price reasonably stable. However, the demand is not as strong as in previous years. Meat traders indicate that in previous years there was much demand for beef around this time of year. There were numerous requests for larger volumes, and the challenge was to obtain enough product. This year is different. Some traders report having lowered their prices for sirloin steak for three weeks now, while this is typically a type of product that should sell strongly at this time of year. Meanwhile, the pressure on the prices of lean beef trimmings is even greater. Due to the large number of cull dairy cows slaughtered in recent weeks, the price of this type of product has decreased significantly. Irish prices continue to fall sharply It is noteworthy that the Irish beef price has significantly decreased in the meantime. In week 49, the carcass price of R-quality beef has dropped by 2.7% since the recent peak price in week 45 to €732.42. Meanwhile, the price of O-quality beef from cows has even decreased by 6.1% to €650.49 per kilo. There is no sign of the recovery visible in the European market in Ireland. The Irish meat sector is clearly more affected by the decline in consumer demand. This is partly due to lower demand from the United Kingdom. Market insiders report that British companies are increasingly importing meat from outside the European Union. Since Brexit, the country has concluded trade agreements with South American countries and Australia, which companies are increasingly taking advantage of. In particular, imports from Australia provide a significant advantage compared to continental Europe, as EU imports from this country are negligible due to very high import duties. Ireland is particularly affected by this, as the country sells about three-quarters of its volumes in the neighboring country. As a result of the decline in demand, the price is no longer far above the level in continental Europe. Thus, the price of Irish bull meat is now in line with the levels of Irish and French prices.