Analysis Cattle & Beef
Trimmings are popular in rising beef market
The beef market is still quite strong. In particular, the sale of meat scraps is going well, as heard in the market. As a result of the better prices, slaughter prices have also risen.
The slaughter prices of cattle have taken a step up. The price of the U-quality increased by 5 cents, as did the P-quality. This brings the price of U-quality cattle to €5.03 per kilo. The P-quality reached a level of €3.23.
It is heard in the market that the supply is on the tight side. This applies to both dairy cows and luxury beef cattle. The supply of dairy cows is currently very tight, according to livestock traders. They mention that prices are currently very good and indicate that there is strong demand at slaughterhouses. However, traders also find it difficult to obtain enough dairy cattle to meet the demand.
The low supply is simply the result of the relatively high prices in the dairy market. Although milk prices are no longer at their peak, the prices are still so high that it is not attractive for dairy farmers to bring less productive cattle to slaughter. As a result, the supply of cull cows and cattle that provide meat for the lower categories such as the P-category remains low.
Luxury cattle are even more difficult to obtain in the market, according to slaughterhouses. Traders confirm this view and indicate that it is difficult to obtain enough cattle. Slaughterhouses do not seem too optimistic about any improvement. The problems in the chain persist. Insiders in the market mention that beef farmers in Belgium are considering quitting. The prices of calves are simply too high to make a profit.
Scraps quite popular
In terms of demand, there is a clear preference for affordable options. Insiders in the market mention that scraps sell very well and are currently quite expensive. According to insiders, consumers are in a phase of saving some money to be able to do Christmas shopping in December.
The sales of luxury parts have decreased significantly. This is partly due to lower temperatures in Southern Europe. In late summer, the terrace weather remained beautiful for quite a long time, leading to strong exports to those areas. The additional demand has now dropped. The market expectation is that sales will increase again in the coming months. It is just a bit too early for the beef market to benefit from the extra Christmas demand. The expectation is that demand will significantly increase in the second half of November.
