Average Heifer Beef Prices in Europe at New Multi-Month Low

Average heifer beef prices among the largest producers in Europe resumed their WoW decline and now stand at a fresh multi-month low.

In week 28 of 2022, which ran from July 11 through July 17, the average heifer carcass price (weighted by heifer beef production) among France, Germany, Italy, Ireland, Spain, Poland, and Austria, which together made up 90% of total heifer beef production in H1 2022 in the EU 27, stood at EUR 5.07/kg, which represents a decline of 2% compared to week 19 prices, the most recent peak for this indicator.

As reported in June, it seems that general inflation has dampened consumer demand, pressuring beef prices downward. Other factors contributing to the decline are generalized lower input prices for cattle feed and slower demand due to people leaving for summer vacation.

However, the story varies among countries. France, which produced 91 thousand mt of heifer beef in H1 2022, still hasn't seen a peak in prices, at EUR 5.37/kg in week 28. Compared to week 19, which ran from May 9 through 15, prices are up by 2%.

In contrast, prices in Germany, which produced 84 thousand mt of heifer beef in H1 2022, stood in week 28 at EUR 5.04/kg, down by 6% from week 19. In the same line, prices in Italy, which produced 83 thousand mt in the period, stand at EUR 5.37/kg, down 2% from week 19.

Meanwhile, in Ireland, which produced 76 thousand mt of heifer beef in H1, prices stood in week 28 at EUR 4.95/kg, down 2% from week 19 and down 7% from their recent peak in week 23.

Prices in Spain, which produced 62 thousand mt, stand at EUR 4.84/kg, which is 0.6% above week 19 prices, but down 0.6% from their recent peak in week 27. Prices in Poland fell by the fastest pace, standing at EUR 4.49/kg, down 8% from week 19 and down 9% from week 21, their most recent peak. Poland produced 37 thousand mt of heifer beef in H1 2022. Meanwhile, prices in Austria, which produced 17 thousand mt, stood at EUR 4.70/kg, down by 0.4% from week 19.

Source: Tridge and European Commission

According to data from the European Commission, in H1 2022, the EU 27 slaughtered 1.64 million heifer cattle heads, and produced a total of 498 thousand mt of beef. Beef exports (excluding fats) in Jan-May 2022 to destinations outside of the EU 27 totaled 170 thousand mt, representing a YoY decline of 15%. The EU 27 as a whole, as of Jan-May 2022, was the eight largest beef exporter in the world, following Brazil, US, Australia, India, Canada, Argentina, and New Zealand.