Price of slaughter cow little comfort in phosphate clearance

After 3 weeks, in which the number of cows slaughtered remained at around 14.500 animals, the number increased again in week 18. The number increased from 14.621 to 15.330 animals. That is more than 5.500 more compared to the same week one year earlier.       

High price alone is not enough
The increase in week 18 brings the total for 2017 to 291.262 units. That is a lead of 47 percent or 92.735 units. The increase is a direct result of the GVE scheme. Based on the development in the field, the higher prices for slaughter cows alone would not have been sufficient to support the current numbers. 

One of those developments in the field is the 2017 harvest season. Most dairy farmers are still busy in the grass until Wednesday. In various places, efforts are being made to harvest the first cut of grass where permitted. The first results are not bad and provide a good basis for the rest of the season. A combination of higher temperatures and moisture then provides the prospect of a smooth second cut.

Higher concentrate prices
Other components in the food also do not cause concern. Although wheat and barley supplies in Germany appear to be somewhat tighter and yield higher prices, the world market is again sending signals that point to lower prices. It may result in a small increase in concentrate prices. Compared to the current milk price, this is no reason for concern.     

Sufficient feed and a relatively good milk price usually mean fewer cows for slaughter. Regardless of the price for cows for slaughter. This season it is the government that is driving the cull. Against this background, it is good news that slaughter prices will only continue to rise. While Dutch dairy farmers are forced to give up cows, dairy farmers in neighboring countries keep the animals as much as possible. This creates shortages and again results in price increases. In Bunnik increases the price for first quality slaughter cows, for example, to 2,10 to 2,40 euros per kilo. 

On average, 2017 (so far) yields a price of 1,985 euros per kilo for first quality slaughter cows. The 2016 annual average did not exceed 1,850 euros per kilo. The current prices are already well above average and indicate that the best of the best has not yet emerged. 

The amount of levies remains guesswork
The price of cows for slaughter is therefore an excuse for the bleeding. It remains to be seen how high the levies will be for dairy farmers who did not achieve the target for the first period. There are sounds from the corridors that indicate that coordination with RVO about the monthly averages is taking more time. This is how time passes. News is expected in the short term about the number of young cattle, but in the meantime half of the first month of the second period has already been completed. In the meantime, the grass harvest also functions as an additional distraction. It doesn't make things any easier.