Poland: Beef production is down despite record profitability

Published 2024년 12월 21일

Tridge summary

Creditor Agricole analysts report an increase in cattle purchase prices in the EU, driven by rising export demand and decreasing supply. The EU beef market is shrinking despite record profitability due to structural changes such as declining interest in breeding and succession issues. However, high demand and low supply are expected to keep prices high. Polish beef exports have increased by 3.7% y/y from January to September 2024, driven by higher sales volume and prices. The livestock/feed price ratio has improved, indicating better production profitability. The cattle purchase price forecast for Poland at the end of 2024 is around PLN 10.45/kg, and PLN 10.80/kg at the end of 2025.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The increase in cattle purchase prices in the EU is continuing, supported by increased export demand for EU beef in conditions of continued decline in its supply, as analysts from Credit Agricole emphasize in the latest agromap. The EU beef market is shrinking. Why is production falling? However, despite record profitability, production is falling, as the authors of the report add. "This results from structural changes taking place in the EU cattle sector, reflected in the decline in interest in its breeding due to high regulatory uncertainty and increasing problems with succession on farms," the analysts explain. Cattle purchase price forecast Therefore, in the opinion of experts from Credit Agricole, cattle purchase prices in the coming quarters "will remain high, and their variability will be determined mainly by fluctuations in demand in conditions of systematic decline in supply." A risk factor for the sector is cases of bluetongue disease, as the authors of the report add. ...
Source: Farmer.pl

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