The EU markets for animal products in July
Slaughter cattle prices above previous year's level
Significantly fewer slaughter cattle were available for sale in the EU in July. The prices developed inconsistently, but young bulls and slaughter cows brought in more than in the previous year. The range of pigs for slaughter was not too extensive, so that the suppliers usually got more money than before. The European chicken markets tended to be consistently balanced. There was little movement in the turkey sector. The egg market was characterized by weak demand and price pressure in the summer. The reduction in intervention prices for butter and skimmed milk powder did not have an immediate effect on the milk market.Beef cattle and pigs for slaughter
The supply of slaughter cattle across the EU was noticeably smaller in July than in the previous month; in Germany slaughter fell by around two percent, in the Netherlands by almost nine percent and in Denmark by almost five percent. Compared to July 2003, significantly more animals were slaughtered, especially in Denmark and the Netherlands. The payout prices for slaughter cattle developed inconsistently from June to July.
Although cows for slaughter were valued somewhat more firmly in the course of the month, the level of the previous month was not reached. The same applied to Denmark, the Netherlands, Greece and Ireland. In contrast, producers in Spain and France made more money for their animals ready for slaughter. The EU average price paid for slaughter cows in trade class O3 was EUR 210 per 100 kilograms slaughter weight, which was a good EUR less than in June, but EUR 18 more than twelve months previously.
Producer prices also developed differently for young bulls within the EU. While providers in Denmark, Germany, Greece, Holland and Great Britain made more money for their animals than in June, prices fell, especially in southern European countries. In July 3, young R2004 bulls brought in 263 euros per 100 kilograms, just as much as in the previous month, but a good two euros more than a year ago.
Slaughter pigs were not widely available in the EU as a whole. The Netherlands slaughtered three percent fewer pigs, Germany slightly more than in the previous month. Only in France did slaughtering increase significantly, namely by around four percent. The prices for slaughter pigs developed quite differently in the individual countries. Some losses had to be accepted at the beginning of the month, while some were under pressure at the end of the month. Only in France did prices trend steadily weaker in July. On average in the EU, class E pigs cost 150 euros per 100 kilograms in July, a good four euros more than in June and 17 euros more than a year ago.
Poultry and eggs
The European chicken markets tended to be consistently balanced. There were no reports of serious supply pressure. The focus of demand was seasonally on fresh poultry. Grillable chicken pieces in particular were in high demand in many places. Producer prices mostly held up, in some EU countries they tended to be somewhat weaker. There were different results compared to the previous year, but the prices mostly fluctuated close to the previous year's line. There was little movement on the European turkey market. There was a little more demand for turkey breast. The offer was not very urgent across the EU. Goods from Poland, which had previously caused irritation on the German market, were no longer offered at such aggressive prices.
The EU egg market was characterized by weak demand in the summer. Supply exceeded demand in most countries, resulting in significant supply pressure. Exports to third countries were steady. Hong Kong again appeared increasingly as a buyer. Nevertheless, the quantities were not sufficient to significantly relieve the local markets. EU egg production will probably only reach its peak in September/October, the calculated production potential is still well above the previous year and increasingly higher than in 2002. Egg prices have literally plummeted in many EU countries and have in some cases reached historic lows.
milk and milkproducts
Milk deliveries in the EU have been falling for seasonal reasons since May and are below the previous year's level. However, the year-on-year arrears continued to shrink in July. Not least due to the lower milk supply, the suppliers in the raw materials trade achieved high prices. The reduction in intervention prices for butter and skimmed milk powder on 1 July 2004 did not have an immediate impact on the market. Intervention sales did not take place after July 1st, butter intervention was closed in almost all countries.
The situation on the butter market has calmed down. After the intervention price reduction on 1 July was no longer compensated, the demand for butter for private storage decreased. The export business has also continued to calm down for seasonal reasons. The multiple reductions in export refunds and sales of intervention goods had a dampening effect on prices.
Brisk demand was observed on the European cheese market. Orders were placed quickly both on the domestic market and from third countries. The stocks were comparatively low for the time of year, especially for semi-hard cheese. Prices rose slightly in some cases.
The skimmed milk powder market was balanced. As export business slacked off and the animal feed industry increasingly covered its needs with goods from intervention stocks, demand calmed down. This development contrasted with a sharp decline in production. Prices developed somewhat inconsistently, but mostly remained stable. Stable prices could also be observed for whole milk powder, while the quotations for whey powder have firmed up somewhat.
Source: Bonn [ZmP]
