Preview of the agricultural markets in April

Partly quieter business after Easter

At the beginning of April, many agricultural products are in greater demand because of the upcoming Easter holidays. Business calmed down again in the second half of the month. On the meat markets, interest will initially focus on beef, veal and lamb. After Easter, weather permitting, demand could shift more to pork cuts that can be grilled. However, the prices for slaughter cattle are tending somewhat downwards. Eggs are lively up until Easter, after which demand is more reserved. The sale of dairy products also benefits from Easter. In the case of potatoes, the focus of sales has already shifted significantly to the imported early goods over the course of the month. The range of fruit and vegetables is becoming more and more diverse. Large quantities of strawberries and asparagus are already coming from southern Europe.

Slaughter cattle prices often weaker

The fixed price development in the marketing of young bulls should come to an end in April for the time being. The quotations are likely to tend to be weak. Strong discounts are not to be expected, as the number of young bulls is likely to remain small. The domestic beef trade is concentrated in the first half of April on the fine cuts that the trade has already stocked up on from mid-March. The Easter holidays could affect beef sales somewhat, as many German citizens go on vacation abroad. When sending young bull meat to EU partner countries, however, no significant recovery is expected.

On the slaughter cow market, prices often collapse in April due to increased slaughtering. In the current year, however, significantly more cows have been slaughtered since January than a year ago. The further reduction in inventories will therefore probably be kept within very narrow limits. It is therefore possible that slaughter cow prices will hold up this April.

The producers of veal for slaughter have to reckon with slightly falling prices. Because after Easter, interest in veal will noticeably decrease again. Since the supply of veal for slaughter is also declining, the discounts should not be too significant. — Lambs are increasingly on offer before Easter as producers adjust their production to the Easter trade due to the increasing demand for lamb. After the holidays, sales will drop noticeably again. Since the supply is then still large, the prices for slaughter lambs are likely to come under pressure.

The development of the piglet population over the past few months suggests that the supply of pigs will continue to be limited. Should the weather in April also develop positively and allow the first barbecue activities, a revival in demand for pork can be expected. The slaughter pig prices should then hold their own at a relatively high level. On the other hand, however, many Germans spend the Easter holidays abroad, which has a negative impact on meat consumption on the domestic market. In addition, the first quantities of pork from private storage may already be outsourced in April; they then push into the German or European market.

Break at the egg market

The supply of eggs should continue to be sufficient. Only in the case of prompt games could there be isolated bottlenecks shortly before the holidays. Brisk consumer demand is expected at the beginning of April, after which business is likely to be more subdued. The egg product industry may then buy more eggs again. Prices are expected to rise until Easter and then tend to weaken. They fall short of the previous year's level, because in April 2003 prices had skyrocketed due to avian influenza in Holland.

Chicken and turkey are readily available to meet demand, and there are no foreseeable bottlenecks. Demand gradually increases as the season progresses. There is no clear upward or downward trend in prices, but the previous year's line is still being exceeded.

Demand for cheese is increasing

With the beginning of the new quota year, the milk delivery to the dairies will increase again, but it will probably remain lower than in April 2003. The production of milk products increases according to the season. Easter is stimulating business in fresh produce, cream and butter, and demand for cheese is also picking up. The quotations on the dairy markets have changed only slightly. Butter and cheese are thus valued lower than a year ago, while skimmed milk powder tends to be slightly higher.

New potatoes advance

Due to the limited shelf life, many batches of old-crop ware potatoes had to be placed on the market early. In April, therefore, not too many goods are available. At the same time, more and more retail chains are discarding old-crop potatoes for quality reasons. Potatoes from the previous year's harvest are still needed at least until the end of the month to cover demand; especially in the east of the country, trade uses them over a longer period of time. In the case of stock goods, supply and demand are in balance, so that no significant price changes are to be expected. Steady demand is to be expected for processing raw material. Since many potatoes are not suitable for long-term storage, farms may try to pre-produce some for the summer. New potatoes from the Mediterranean are entering the market in increasing quantities. The interest in the early goods is likely to increase significantly from Easter. As early as March, individual chains were already planning to switch completely to the new harvest offer. Due to demand, prices are higher than a year ago.

Start of the strawberry and asparagus season

The supplies of strawberries from Spain, our main supplier country in April, are increasing significantly. The Jonagold and Jonagored, Golden Delicious and Idared apples are particularly well represented here, while there are plenty of the Gala variety from overseas. Williams and Packham's Triumpf varieties from countries in the southern hemisphere will dominate the table pears.

On the vegetable market, the range of fruit vegetables is shifting more and more to Western European production. Tomatoes, cucumbers, peppers and aubergines are being offered in increasing quantities and at falling prices, primarily from the Netherlands. German producers are also becoming increasingly involved in the cucumber range. At the turn of the month March / April, the first German rhubarb, which is premature under foil, is harvested; the outdoor crops are then harvested in April. The supply of fresh asparagus from Spain and Greece is increasing sharply and will be available at falling prices. The range of salads and radishes, bunched carrots and spring onions is also increasing. German storage onions will still be available until the end of April, while overseas suppliers will continue to supply the German market.

Source: Bonn [ZmP]