Higher cattle prices in 2022 could halt downward trend in EU beef production

Published 2022년 12월 15일

Tridge summary

The article provides an analysis of the European Union's agricultural sector, focusing on the decrease in industrial slaughter and the dynamics of foreign trade and domestic cattle prices. The volume of industrial slaughter in the EU experienced a decline by 1.5-1.6% from January to August compared to the previous year, despite a slight compensation from increased imports. Domestic cattle prices in Poland peaked in May 2022, showing a notable increase year-over-year, which improved profitability and slightly increased the cattle population in the EU, including Poland, by 1% in the first half of 2022. Looking ahead to 2023, higher profitability might slow down the decline in EU meat production, although high prices could hinder exports and domestic sales, leading to an increase in beef supply and potentially weakening prices, as long as production costs remain high.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

According to the analyst, in the period January-August, the volume of industrial slaughter in the EU was lower by 64 thousand. tons on an annual basis, i.e. by 1.5 percent. The partial data for September also showed a y/y decline of 1%. - However, the foreign trade balance has deteriorated. During the first eight months of this year, exports from the European Union in terms of volume decreased by 5%. compared to the same period of the previous year. At the same time, imports grew, which in the indicated period was higher by 34 percent. on an annual basis. This fully or partially (depending on the month) compensated for the decline in EU meat production, informs Rykaczewski. Domestic cattle prices According to the analyst, domestic cattle prices peaked in May 2022. In the indicated month, the average purchase price in Poland was PLN 11.72/kg (+61% y/y). In subsequent periods, the quotations remained in a slight downward trend - in November, cattle were paid on average by 7 percent. ...

Source: Farmer.pl