Inside: Dairy Market

Prices for export heifers and broiler cows remain unchanged

1 February 2018 - Herma van den Pol

The supply of broiler cows is slowly increasing. It leaves the price undisturbed, which manages to maintain itself at a relatively high level. Exports show a more erratic picture, which is reflected in pricing. The phosphate rights system also affects the market.

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In week 2, another 15.022 cattle were sent to slaughter, according to data from the Netherlands Enterprise Agency (RVO.nl). There is an increase towards week 5, as can be concluded from sounds in the market. Especially the date January 15 is important here. This was the last date on which dairy farmers received the phosphate rights, which signaled the starting signal for drawing up the balance sheet.

Prices at a good level

The cow supply is described as slightly larger, but this does not affect prices. They remain in good condition and are therefore described as stable (even good for the time of year). So noted Livestock and Logistics Netherlands stable since week 49. Which means a price of €3,95 to €4,70 per kilo for the highest quality and a price of €2,35 to €2,70 per kilo for the lowest quality. Sausage cows increased in price in week 2 to €1,60 to €2,15 per kilo for the second quality and €2,10 to €2,40 per kilo for the first quality.

Demand for cows is capricious
The supply and demand for cows for slaughter have a good balance. This does not entirely apply to the trade in export heifers. For example, trade with England is described as difficult, due to an expensive pound. Prices in the Netherlands are also on the high side, compared to the prices made at English auctions.

Demand mainly comes from East Germany and Poland, but dairy farmers in the Netherlands are also still looking for good cattle. However, the supply is not overflowing. Gradually, a dairy farmer stops farming, allowing a complete flock to be sold. However, more often it concerns an individual. If an entire flock is sold, the price can rise to €1.350 each for milk-producing animals. More common is a price around €1.200 per piece for lactating animals. Pregnant heifers sell for €1.000 to €1.100 each.

Exporters indicate that the erratic supply of 2017 also has an impact. For example, there are customers who had to switch to other providers. Now that there is more supply, those customers will no longer return. In general, the export market is calm. There is talk of a lot of young cattle being moved to Germany, but this is not done through trade.

Stopping dairy farmers
The expectation is that the cow supply will increase. This is due to dairy farmers quitting, but also because dairy farmers have to comply with it system of phosphate rights. A switch from dairy cattle to beef cattle and pasture in the coming months is also not excluded. This is because then for pasture and beef cattle no rights needed.

Click on the table below to see the entire overview.

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