Outlook: Beef becomes scarce and expensive
Outlook

Beef becomes scarce and expensive

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Earnings in the bull fattening sector have risen. Thanks to a rainy summer, farmers in Lower Saxony harvested a lot of maize and grass, so that the feed silos are well filled.
Earnings in the bull fattening sector have risen. Thanks to a rainy summer, farmers in Lower Saxony harvested a lot of maize and grass, so that the feed silos are well filled.

GERMANY, Hannover. Prices for slaughter cattle could remain comparatively high in the coming year. However, producers are complaining about increased costs. Slaughterers and processors have to adjust to this.

"Beef is a scarce commodity throughout the EU. This will be reflected in revenues next year, and the positive trend will continue," predicted the market expert of the Lower Saxony Chamber of Agriculture, Dr Albert Hortmann-Scholten, recently at the Beef Committee of the Lower Saxony Landvolk. However, its chairman, Martin Lüking, also pointed to limitations, according to the state farmers' association. "Part of the price increases will remain with us producers, but we will have to pass part of it back to the processors and the trade," said the bull fattener from the Nienburg area.

According to Hortmann-Scholten, the reason for his optimism with restrictions is the "worrying cost explosion" in the area of raw materials. Record prices have to be paid for diesel, heating oil, fertiliser and above all feed. The market was also affected by a lack of cutting personnel, mainly due to the still noticeable consequences of the Corona pandemic. With only 11.2 million cattle left in Germany, meat, which is still in great demand, is becoming increasingly scarce, and prices correlate with those for feed and other raw materials.

"We are observing that after the prices for grain, those for meat are also rising," explained the Chamber expert. In this context, the relationship to costs is more favourable for beef producers than for sow farmers, because the wet year 2021 has brought sufficient volume yields for maize and grass silage, as well as for hay and straw, he said. According to Hortmann-Scholten, despite a slight increase in production, the global supply of beef is also rather scarce compared to the increase in demand and has therefore also become more expensive.
Source: fleischwirtschaft.de; AgE

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