Dutch cattle price keeps falling

The Dutch cattle price has once again gone down. The stable period of recent weeks has therefore again proved short-lived. Weak demand is coinciding with strong local supply.Whereas most European beef prices are still very stable, the stability of the Dutch cattle price has been broken once again and the price has fallen. Last week, the price of slaughter cattle remained stable for the second week in a row. This is a signal that the market can move in two directions. Either the market remains stable for a longer period, or slaughterhouses pause briefly to see how price reductions are being absorbed. This time, the latter has happened.Historically, such a period is usually followed by several consecutive declines. This is certainly not unlikely, as beef prices almost always take a step back at the start of summer. This is the result of lower consumer demand as Northern Europeans go on holiday en masse. As a result, demand for meat shifts in part from Northern to Southern Europe.Weak demand drives the marketOn top of this, overall demand is weak. This is partly due to unfavourable weather. Spring remained cold for a long time and, in fact, it was never pleasantly warm. When it was warm, it immediately became scorching hot, which is also not favourable for meat consumption. Barbecuing in temperatures above 35 degrees is not exactly comfortable, and visits to terraces tend to revolve more around a cold beer or an iced coffee than a full meal. In addition, consumers are more likely to opt for cold options, which does not benefit the meat markets. Consumer confidence is also extremely weak, meaning structural demand for at-home consumption is not strong either.After two weeks of stability, Dutch cattle prices have once again taken a step down of 10 cents. This brings U-quality down to €6.55 per kilo. O-quality has fallen to €5.28, while first sausage quality has declined to €3.60 per kilo.