Northern European beef is about to drop in price

The European beef market remains in a weak state. Demand is low, and prices have not yet fallen to a level at which the market is expected to recover. Both cattle and meat are currently pricing themselves out of the market. As a result, further price declines are expected. At present, the European beef market does not look particularly positive. Demand for high-value cuts is limited. Only ribeyes and sirloins performed relatively well due to Easter demand, but even these cuts have recently declined in price. In France — where official quotations for beef cuts are published by the government — ribeye prices fell by nearly €1. This reflects the end of the Easter-related demand boost. As a result, the already weak market is not showing signs of improvement. Both meat importers and South American exporters report that European demand for virtually all cuts has declined considerably. Cold storage stocks are well filled, further dampening demand. This weak demand has created a pricing mismatch, especially as demand in the United States continues to strengthen. Cattle prices drop As announced last week, slaughterhouses have attempted to exert significant pressure on slaughter cattle prices. Now that Easter preparations are over, weak demand and abundant meat supplies are increasingly weighing on the market. Last week, insiders expected a sharp decline in prices. That decline has now begun. Market sources indicate that slaughter cattle prices are under pressure across all categories. Insiders report two consecutive price reductions of between 15 and 20 cents per week. These cuts are substantial, given that prices typically move in increments of 5 cents, or 10 cents in cases of strong market imbalance. The end of Easter preparations, combined with full cold storage inventories, is clearly putting pressure on slaughter cattle prices. Northern European quotations not declining yet In official quotations, however, the decline is not yet visible. The Vee & Logistiek quotation showed little sign of this trend in week 12 and remained unchanged again this week. Prices across all categories are stable. This raises the question of whether slaughterhouses are truly succeeding in pushing prices down. Although demand for meat is reportedly weak, the supply of cows remains substantial in the Netherlands. In contrast, cattle supply in the rest of the European Union is very tight. Earlier this year, slaughterhouses already implemented consecutive price reductions of 10 cents, while Vee & Logistiek reflected a smaller decline only at a later stage. The VEZG presents a very similar picture of the market, with cattle prices in Germany remaining stable across all categories. For example, O-grade cattle are still quoted at €5.90 per kilo. At the Dutch livestock market in Woerden, however, the decline is now clearly visible. Prices of slaughter cows of O-grade have dropped by 20 cents. Bulls of the same grade declined slightly less in price, by 10 cents. Lower-quality cattle recorded more moderate declines. P-grade cows decreased by 15 cents, first-quality manufacturing cows dropped by 7 cents, and second-quality manufacturing cows decreased by 5 cents.