consumer price index
Beef price index shows only increases
The consumer price index of beef reached a record high of 2017 points in November 115. In December, the index finished 1 point lower at 114 points, which is almost 4% higher than in December 2016.
Despite the large supply of broiler cows in 2017, the ex-farm price has remained relatively high (127 points in December). This is mainly due to the favorable developments in foreign markets. The price index of slaughterhouses and cutting plants ended in December 2017 at 111 points.
Record high reached
De consumer price index ended in December 2017 at 114 points, a relatively high level. Since 2015, the monthly beef price index has averaged around 109 points. From April 2017 that changed and an increase was started, bringing the consumer price to a record high of 2017 in November 115.
The price index of slaughterhouses and cutting plants is also at a high level at the end of 2017 (112 points in November). The year ended with an index of 111 points. The producer price index in 2017 was on average 3 points above the level of 2016.
The farm-gate price index ended at 2017 points in December 127, which is 20% higher than in December 2016. The farm-gate price index (140 points) did show a sharp drop of 13 points from September onwards. However, this price index started the year at just 106 points. That was the lowest level since 2011.
Developments on the dairy market influence
The beef market is strongly influenced due to developments in the dairy market. Since quite a few dairy cows were disposed of as a result of the phosphate reduction plan, it was offer cattle roomy. For example, more than 700.000 cattle were slaughtered last year, about 100.000 more than in 2016 and more than 200.000 more than in 2015.
The increase in the prices of cattle for slaughter is also due to the good foreign demand for beef and the high prices on the foreign markets. Even more emissions from dairy farming are expected in 2018 and it is still uncertain whether this can be marketed at a favorable price.
*The year 2010 is equal to 100 points and is included as a reference point.
Kimberly Baker
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