The cattle prices have remained almost the same throughout the summer. However, the meat market is quite dynamic. After a weak period, there has been good sales in recent weeks due to the good weather. However, due to a lack of confidence, slaughterhouses are not very enthusiastic about further increasing the prices of both meat and cattle.
The cattle prices remain remarkably stable. The U-quality is traded for €4.97 per kilo for the ninth consecutive week. During the same period, the price of the P-quality was €3.18 per kilo.
That the prices are stable does not mean that there is little happening in the beef market. Although slaughterhouses have chosen to keep cattle prices very stable, there have been significant shifts in meat prices this summer. Most of the summer saw significant pressure on meat prices. It started with low prices for luxury cuts due to lower demand from Southern Europe. Later, the decline extended to weak prices for trimmings in the Northern European market.
This last part was not unexpected. Due to bad weather, there was little barbecuing in the spring, leaving supermarkets with large meat stocks. This significantly put pressure on the prices of products made from trimmings. However, due to weak supply, slaughterhouses were not willing to lower their slaughter prices.
Increased Meat Demand
There is now an opposite pattern. The demand has increased significantly in recent weeks, according to insiders in the market. It started with a greater demand for luxury cuts from Southern Europe. Slaughterhouses indicate that the export of cuts such as ribeyes, hares, loins, and flank steaks has increased significantly. This is an atypical situation. Normally, the demand for luxury cuts in Southern Europe decreases from September onwards. Due to colder weather, people choose to cook more at home and eat out less, reducing the demand for luxury cuts. However, this year, this effect is not happening as it is unusually warm. In Northern Europe, the warm weather continues, resulting in a better demand for trimmings. There is more barbecuing than expected for this time of year. Insiders in the market report that supermarkets, after relying on their stocks for a long time, are ordering products made from trimmings again.
This helps to limit the damage from the weak spring, but slaughterhouses are not too optimistic in the long term. The warm weather will not last forever, and the structural demand is still not strong. An employee of a slaughterhouse expects the situation to change at any moment. "Customers are slowly starting to negotiate more assertively on the price. The slaughterhouse is not giving in yet, but it won't be long before they have to bend," the employee says.
Slaughter Cattle Supply
The limited confidence explains why the prices have not risen. Insiders in the market continue to report low slaughter cattle supplies in various regions. Livestock traders indicate that to compensate for this, extra calves are still being slaughtered that would otherwise be destined for export. Normally, this, along with increased demand, would lead to a rise in cattle prices. However, because the prices remained constant earlier this year despite weak demand due to low supply, slaughterhouses are holding their ground for now.