Beef prices under pressure despite approaching Christmas

Several slaughterhouses have lowered prices by around 30 to 60 cents per kilo. Meanwhile, the price of higher-quality R-grade cattle remains more stable. The reason for this is simple: supply has increased significantly, while demand for beef, according to market insiders, is weak.

On average, meat prices have fallen slightly less sharply, according to Eurostat data. Across Europe, the price of O-quality cattle has fallen by about 25 cents, according to the most recent data from about a week ago. It is noteworthy, however, that this trend is barely reflected in the Livestock & Logistics quotations. Between weeks 42 and 44, prices fell by 25 cents, but later recovered by 5 cents. Normally, this would indicate a strong position for traders, but given the substantial supply, this is quite unlikely.

Wide range
The main reason for the price drop is a substantial supply of dairy cattle. According to the Netherlands Enterprise Agency (RVO), the slaughter rate in the Netherlands between weeks 40 and 45 was significantly higher than both the 2024 level and the five-year average. During this period, the slaughter rate was 7,9% above the five-year average. This is due to the significant drop in milk prices that has been observed in recent months. 

While supply remains high, high consumer prices have significantly weakened demand for beef. In the meat market, this is explained by the fact that supply simply exceeds demand. This puts pressure on both sales volumes and margins. This is a highly unusual situation, as December is normally by far the strongest month for the beef market, both in terms of sales and margins.

Slaughterhouses are deliberately choosing not to slaughter at full speed. They want to avoid having to freeze meat, given the fear that beef prices will plummet after the holidays. This decline has already begun for meat trimmings. Prices for this type of product have been under pressure for a month or two.