Meat & Poultry
Beef
The average price of EU cattle reached EUR 4,280/MT, up 2.3% m-o-m and 13.2% y-o-y in December,
on the back of tight cattle supplies across the EU. Also, reducing margins, due to high input costs, are
likely to result in a decline in EU beef production in 2022. According to market participants, net
margins in cattle rearing are projected to drop below the average of the last 5-10 years.
In December, the average price of US cattle rose by 5.1% m-o-m and 28.6% y-o-y to USD 4,836/MT,
on continuing strength in beef demand and tight cattle supply. The price was also driven by increased
exports to China and Japan. Additionally, higher feed costs have led to an increase in the average
price of US cattle. At the same time, processing facilities have dealt with labour shortages, which have
reduced their capacity to process meat at the same rate as before the pandemic.
2,500
3,000
3,500
4,000
4,500
5,000
Dec 19 Mar 20 Jun 20 Jun 21 Sep 21 Dec 21
Cattle steer ddwt US - USD/MT
Sep 20 Dec 20 Mar 21
ZK33 - Cattle steer ddwt US
The average price of UK cattle remained stable m-o-m and increased by 7.1% y-o-y, to GBP
3,916/MT in December, as demand continues to outstrip supply. The strong demand from the retail
sector for the British beef also supported the UK beef prices. Rising farm input costs are likely to keep
UK beef prices firm in the short term.
4,400
4,300
4,200
4,100
4,000
3,900
3,800
3,700
3,600
3,500
3,400
Dec 19 Mar 20 Jun 20 Jun 21 Sep 21 Dec 21
Cattle steer ddwt R3 mp EU - EUR/MT
Sep 20 Dec 20 Mar 21
MDC2 - Cattle steer ddwt R3 mp EU
4,150
3,950
3,750
3,550
3,350
3,150
2,950
2,750
Dec 19 Mar 20 Jun 20 Jun 21 Sep 21 Dec 21
Cattle steer ddwt O3 NIr UK - GBP/MT
Sep 20 Dec 20 Mar 21
MF05 - Cattle steer ddwt O3 NIr UK
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