Slaughter cattle supply is and will remain tight for the time being

In Germany, the quotations have risen even further. Here too, there is talk of a very tight supply. Although both the Dutch and German meat trade complain that the increased purchasing quotations cannot always be converted into sales prices, the German quotations managed to move up last week. It still takes a lot of effort for slaughterhouses to get enough slaughter hooks filled.

Various influences reduce the availability of cattle
Traders report that several factors have caused supply to lag. Recently it has been the market situation in dairy farming that plays a role in the supply of cows for slaughter. The high milk price currently seems to limit cow emissions somewhat. The uncertainty surrounding the possibility of introducing animal rights also plays a role. Dairy farmers keep the number of cattle on the farms at a good level. If an animal rights system is ever introduced that is based on the number of livestock available, they do not want to be left with understaffing.

Dry summers reduce supply for a longer period
Parties also mention the influence of the dry summers in the years 2018 to 2020 as a factor that should not be underestimated. Beef farmers in Europe at the time reduced their livestock somewhat due to the tight feed supply. This effect still influences the range that companies can offer slaughterhouses. It is a more structural factor that has an effect on the market for a longer period of time. It is not expected that supply will increase quickly in the short term.

Figures from the Netherlands Enterprise Agency (RVO.nl) also clearly show the small supply of cattle for slaughter. The slaughter is still at a low level compared to previous years.

Prices have been stable in recent weeks
On the Bunnik cattle market, most quotations were stable last week, but at a high level. Sausage cows (first quality) became even €0,02 more expensive and now sell for €3,10 per kilo of slaughtered weight. Slaughter bulls (class E) are now stable for the tenth week at €5,00 per kilo carcass weight.

Another factor that is also driving the listings is the strong demand for beef worldwide. The latest export figures from the US Department of Agriculture show that beef exports by the United States (the third largest exporter) also broke records in November. Never before has the exported volume been so large.

The most important boost the figures were exports to China. The country imported 400% more beef from the United States from January to November. The positive trend is also supported by significantly higher volumes shipped to traditionally important markets such as Japan (+6%) and South Korea (+23%).