Beef market remains in uncomfortable phase

The beef market remains in an uncomfortable phase. Prices are slowly coming under pressure, but buyers and sellers still do not easily come to an agreement. The slaughter cattle prices are still under pressure. Not only in the Netherlands have prices fallen, but also in our neighboring country there is now a clear decline. A significant supply of slaughter cattle remains an important reason, but meanwhile, demand is also weak because consumer prices are simply high. The pressure on the North European beef prices remains clearly visible. In the Netherlands, the beef price has dropped again. The quote from Vee & Logistiek decreased clearly once more. This time, unlike last week, there was no differentiation between the quality classes. The price of all categories fell by 5 cents per kilo. In Germany, the decline is now also visible. The price of O-quality cows has dropped by 5 cents. This brings the price to €5.70 per kilo. Notably, the young bulls of R-quality even dropped by 10 cents to €7.00 per kilo. Supply remains significantThe declines are thus considerable. In the market, it is heard that Dutch slaughterhouses have implemented larger declines. During the same period, they seem to aim for a decrease of about 50 cents. The main reason for this is a weak beef market. The demand for luxury cuts is weak even for this time of year, and the prices of meat trimmings have dropped significantly. This is a consequence of high consumer prices. Additionally, the supply of dairy cows remains quite ample due to low payout prices for milk, as is heard in the market. Unfortunately, it is difficult to substantiate these statements with data, as RVO has not published slaughter data in recent weeks. As a result, the most recently available data dates back to week 2. Meat market remains challengingIn the meat market, it continues to be reported that the balance has yet to be found. Traders indicate that the way meat is traded is changing. Buyers are placing more small orders with various suppliers. In this way, they try to get the best possible deal. It is heard in the market that the negotiations often proceed slowly. The discussions can be quite heated, and both buyers and traders have to make a lot of effort to reach an agreement. The source of this is simple. The willingness to pay what is currently being asked in the market is low, but traders are generally also certainly not always willing to lower the price. The consequence of this is that traders do not always sell all their lots, which sometimes leads to significant last-minute reductions. The situation invites creativity. Customers are not willing to purchase meat from lower quality classes. However, a trader indicates that there is room for negotiation over meat with a shorter shelf life. Customers have little trouble with such arrangements as the uncertainty leads to small stocks being held. Import is difficultImporters benefit little from the situation. Due to low demand and high prices, particularly in South America, imports are often not profitable. Prices in South America are quite high. In Argentina, the prices of popular cuts have increased by nearly 20% this month, as insiders in the market report. This is attributed to the increase in imports from the United States. Exporters in the country indicate that Europe is not responding well, as importers are unwilling to pay the prices being asked in the country. At the same time, traders in the country indicate that the willingness to lower prices is low. In Brazil, the situation is similar. Traders in the country say that global demand is very good, but European importers express doubts about this. Based on the most recent data from the Brazilian industry organization ABIEC, these doubts are fairly substantiated. Compared to a year ago, exports in January 2026 decreased by 24.3% to 264,000 tons. Meanwhile, the value of exports has risen on average from $5.30 per kilo to $5.32 per kilo. This shows that the strong demand is relative. A lower cattle supply seems more to underlie the high prices.