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The average price of EU cattle reached EUR 4,135/MT, up 1.3% m-o-m and 14% y-o-y in June, as EU
beef production declined 3.7% y-o-y in Q1 2021 . Also, the number of EU cattle available for meat
production was forecast to drop by 2.4% y-o-y in H1 2021, indicating beef supply tightness. This was
due to structural adjustments in the beef sector amid COVID-19 measures in many EU countries and
low demand from the foodservice sector.
US cattle slaughter, and thus beef supplies were disrupted for two days in June as one of the world's
largest meatpackers was the victim of a cyberattack that resulted in the closure of nine of its plants in
the US. Also, persistent drought conditions in some regions such as the Northwest and North Dakota
hindered market supplies. As a result, poor pasture conditions, coupled with higher feed costs and
manufacturing disruptions, led to an increase in the average price of US cattle by 2.4% m-o-m and
17.1% y-o-y, to reach USD 4,292/MT in June.
The average price of UK cattle increased by 1% m-o-m and 9.3% y-o-y to GBP 3,807/MT in June.
Tightness in cattle supplies remains the underlying driver for high UK beef prices. In addition, the
reopening of restaurants supported demand from the foodservice sector, keeping UK beef prices
firm. Retail sales were driven by a seasonal rise in demand for steak meat cuts, such as chuck, brisket,
ribs and mince (for burgers), particularly for summer barbecues, supported UK beef prices.