Significant price premiums for young bulls

The slaughter cattle market in February

On average in February, the local slaughterhouses had only just an adequate supply of slaughter cattle. For young bulls in particular, the slaughterhouses therefore raised the payout prices sharply in the first half of the month in order to obtain the required numbers; From the middle of the month, however, they were hardly willing to grant further price premiums. Domestic demand for beef showed no impulses, so that the higher purchase prices could not be passed on to the downstream trade levels. Farmers also earned more money on a monthly average for slaughter cows, but the premiums were not as significant as with young bulls.

In February, producers received an average of EUR 3 per kilogram slaughter weight for young bulls in the meat trading class R2,50; that was eleven cents more than in January, but still 25 cents less than twelve months ago. For class R3 heifers, the average price rose by two cents to EUR 2,28 per kilogram, which is three cents short of the previous year's level. Compared to January, the proceeds for slaughter cows in the O3 category have also increased, namely by six cents to 1,58 euros per kilogram; the farmers received 16 cents less than in February 2003.

The mail-order slaughterhouses and meat product factories in Germany that are obliged to report accounted for an average of around 49.600 slaughter cattle per week according to trade classes in the month under review. That was a good eight percent less than in January, but almost eleven percent more than in the same month last year.

Source: Bonn [ZmP]