Beef sales are exceptionally difficult

The European beef price remains very stable and the effects of this are visible. As always in January, demand is weak, but this year insiders in the market indicate that sales are indeed very difficult. In general, meat prices in the European Union remain quite stable. This applies to both the O-quality and the R-quality. Since the holidays, the carcass prices that the European Union has received have remained virtually unchanged. This applies to markets across Europe. That prices are not falling has a clear effect on the meat market. The demand for beef is not good according to both traders and slaughterhouses. This is fairly common for January. During this month, the demand for beef decreases due to a change in consumption patterns. Consumers spend less on food and therefore opt more for chicken meat, as reported by meat traders serving multiple markets. Although this is an annual recurring pattern, the dynamics this year appear to be stronger than usual. High consumer prices are causing an additional steep decline. The demand for minced meat is also not very strong. Although prices are clearly under pressure, they still seem simply too high for many consumers. Moreover, many consumers focus on a healthier lifestyle in January. This has a negative impact on the sales of products like meat scraps, while poultry meat benefits once again. Quotes provide a different picture The quotes from the major livestock farming organizations contrast with the picture that is heard in the market. In the quotes from Livestock & Logistics, this has not yet been reflected. Prices remain stable across the board, and at the beginning of the year, there was even an increase. For example, the price of the first sausage quality increased by 5 cents. Meanwhile, the German VEZG is even more optimistic. Our eastern neighbors are reporting a much more positive outlook. Over the last three weeks, German prices have increased by 5 cents per kilo each week. The O-quality rose from €5.80 per kilo to €5.95 per kilo. Although the quote shows an increase, insiders in the market tell a very different story. Slaughterhouses indicate that they are significantly pressing the prices of dairy cows. The prices have dropped by about 30 cents per kilo since the new year, so it can be heard in the market. This is due to a strong supply of slaughter cattle, partly due to the weak milk market. Since milk prices have dropped significantly, the supply of dairy cattle is quite strong. Around Christmas, the supply slightly decreased, but since January, many farmers have chosen to send less productive livestock to slaughter. The result is that slaughterhouses and traders are speaking of oversupply. While slaughterhouses indicate they are full, traders report that they cannot sell their dairy cattle well. Despite lower meat prices, however, beef remains expensive. The reason for this is simple: the supply remains quite limited and can always be placed directly. Market insiders indicate that prices in the beef segment stabilized long before Christmas and for now, there seems to be no end to this.