The demand for beef cattle from Germany and Belgium remains high. In recent weeks, relatively more cattle for slaughter have remained in the Netherlands. The price difference with the Dutch slaughterhouses has become smaller.
Now that many cattle are offered for slaughter within the phosphate reduction plan, there is one advantage: the market demands a lot of meat. Slaughterhouses in our neighboring countries are especially keen to purchase the extra animals. Prices have therefore not fallen in recent months, but have actually risen.
For a lower price
Transporting cattle for slaughter to neighboring countries is also attractive if more is paid there. And it certainly was. According to cattle trader Max Brinksma, who regularly sells cattle for slaughter to Germany, the difference in kilo price was significant until recently. 'For thicker cows it was about 20 cents and for thin cows it even went up to 0,50 cents per kilo. As a result, the Dutch slaughterhouses have also increased prices somewhat in recent weeks. They got fewer animals than they wanted. It was clear that, because of the high supply, they were trying to buy the cattle for a lower price than the market actually indicated.'
Higher transport costs
Germany mainly wants fatter cows and the Belgians pay the best for average to moderately meaty cows. The export of cattle for slaughter does not necessarily have to cost more for the trade. They often have to deal with higher transport costs and the NVWA's "5 euros per animal" inspection costs, but the VAT advantage is offset by this.
Anyone who sells a cow in the Netherlands pays 6 percent VAT. When the same cow is sold in Germany, the 6 percent does not have to be paid. Both times the trader gets 5,4 percent back through the agricultural lump sum. He often even receives a plus on a sale in Germany or Belgium.
How much is unknown
It is not known how many cows actually cross the border for slaughter. The animals are registered as exported with the RVO, but no distinction is made between live and slaughter cattle. Various traders and the sector organization Vee&Logistiek confirm a strong increase in the export of slaughter cattle. Just a few weeks ago, 900 of the 1000 cattle traded crossed the border from the market in Leeuwarden to slaughterhouses.
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.