Bullock prices skyrocket 50% in the year so far

In recent months, beef prices across Europe have escalated to unprecedented levels, driven by a confluence of factors affecting both supply and demand. In US$ terms, bullock prices reached almost 8,50, after starting the year at US$ 5,65, an increase of almost 50%. The strength of the € also contributes.

Wouter de Heij wrote in Protein Trends portal that a significant contributor to the rising prices is the reduction in dairy cattle populations across Europe. “European consumers predominantly consume beef from culled dairy cows; thus, a shrinking dairy herd directly translates to reduced beef availability. This decline is attributed to several factors: an aging farming population without successors, farmers opting for cessation schemes, and a shift towards sustainable practices involving fewer animals on larger land areas. Notably, the European Commission projects a minimum 10% decrease in the dairy herd over the next decade.”

Market analysts, including Éva Gocsik from Rabobank, predict that beef prices are more likely to rise than fall in the coming years due to sustained demand. Fast-food chains and supermarkets continue to be major beef purchasers, and while consumers might forgo expensive cuts like steak in favor of cheaper options such as ground beef, the overall demand for beef remains robust.