Inside Milk
Sufficient supply is reflected in the price of the slaughter cow
The number of cattle slaughterings in week 36 is slightly higher than in the previous week, according to new figures from the Netherlands Enterprise Agency (RVO.nl). The fact that there is more than sufficient supply is also visible in the falling price for sausage cows.
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The number of cattle slaughtered in week 36 amounts to 10.311 head, with an average weight of 358,14 kilos. This means that slightly more cattle were slaughtered than 1 week earlier, because in week 35 the number of slaughters was 9.925. This is not surprising, because if we look at historical data, we see that the number of slaughters in this period of the year always rises slightly.
If we look at the 5-year average, the number of slaughters this year in week 36 is approximately 8% lower. The 5-year average for this week is 11.186 animals. However, it is difficult to make this comparison right, given the phosphate rights system in 2017 and 2018 quite a few cows were sent to slaughter. Significantly fewer cattle were slaughtered in the first 7 months of this year than in the first 7 months of last year: 348.493 versus 425.473, a backlog of approximately 20%.
Offer is expressed in prices
It can be heard from the market that there is more than sufficient supply at slaughterhouses, as a result of which the prices of Vee & Logistiek Nederland have fallen slightly. For the highest quality sausage cows, the price this week is €1,60 to €1,90 per kilo, while 1 week earlier it was €1,65 to €1,95 per kilo. The price for the lower quality is also falling: from €1,15 to €1,65 per kilo to €1,10 to €1,60 per kilo. Overall, however, the market has been fairly stable in recent weeks.
Compared to previous years, the price is, however, considerably lower. In 2017, the price for the highest quality sausage cows in week 36 was €2,28 per kilo and in 2018 it was €2,03 per kilo. In 2017, this was mainly caused by a shortage of supply, as livestock farmers only brought cows to slaughter in the context of the law.
The prices for the different classes of broiler cows also show a small decrease. The price of broiler cows U falls to €3,30 to €3,95 per kilo and the price for broiler cows R falls to €2,75 to €3,10 per kilo. For broiler cows O, the top is €2,85 per kilo and the bottom is €2,30 per kilo. Finally, the price of broiler cows P falls to €1,90 to €2,30 per kilo.