Analysis Beef
Beef market still looks undisturbed
The pricing for slaughter cattle and beef cannot be disturbed by anything or anyone at the moment. While prices regularly had to take a step back in the first weeks of other years, this year is different.
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At the cattle market in Bunnik, the quotations for various types of cattle for slaughter managed to squeeze out a plus - despite the extremely high price level. A tight supply of cattle for slaughter appears to be the main cause. Supply is also tight in neighboring Germany. Prices for cows for slaughter will continue to rise in the first weeks of the year.
Market Figures
For example, sausage cows (first quality) on the market in Bunnik yield €0,03 more in the first week of the year, up to an average of €3,08 per kilo of slaughtered weight, excluding VAT. Slaughter cows (R) even yield €0,05 more per kilo and record €4,18 per kilo of slaughtered weight. Slaughter bulls (E) are stable at €5,00 per kilo of slaughtered weight.
The continued tight supply is clearly reflected in the statistics of the Netherlands Enterprise Agency (RVO.nl). In recent weeks, the number of slaughters has also been at a lower level than in previous years. In the last four weeks of the year, 33.461 cattle were slaughtered and processed in the Netherlands. One year earlier, there were more than 40.000 units in the last four weeks of the year.
Problems United States
Meanwhile, the rapid spread of the omikron variant in the United States, one of the world's top producers, is causing more problems in the processing of cattle for slaughter. Infected personnel cannot be deployed and this leads to lower processing capacity, which (further) tightens the beef supply.
BSE also continues to influence the market left and right. The largest importer, China, this week suspended beef imports from Canada after the disease was diagnosed in a cattle in the country. It was the first case in Canada in six years. Although the import ban is expected to be temporary, other countries will have to meet the enormous Chinese demand. Canada itself does not expect too much of an impact, because it has a well-diversified export position and sees strong demand from other countries such as the United States, Japan, Mexico and Vietnam.
The worldwide tight supply of beef therefore quickly finds another way in cases of unrest. It is indicative of the current situation, where market disruptions seem to have little influence on prices.