Beef prices on the rise: pressure builds across the chain

The price of a steak has gone up significantly in a short time. Not just for consumers, slaughterhouses and farmers are also facing steep cost increases. According to Wageningen University & Research, the entire beef supply chain saw a sharp price jump in May 2025 compared to just two months earlier.

11 percent more at the checkout

The consumer price index for beef and veal reached 155 points. That’s an 11% increase compared to March, and even 22% higher than the same month last year. After a few months of slight decline in 2024, prices have been climbing again since November.

And that increase didn’t come out of nowhere. The strongly rising prices among meat processors and livestock farmers, caused by beef shortages, are now being passed on to consumers.

Processors paying more for fewer cattle

The producer price index also surged: from 175 in March to 184 points in May. Meat processors are fishing in an increasingly empty pond. Slaughter cattle are in short supply, so they’re raising their bids just to keep hooks filled. The price index has been climbing steadily since August 2024, up 40 points in less than a year. So far, processors have managed to pass those costs on to buyers. But how long will that last?

Supply can’t keep up, but demand isn’t dropping

Farmers are also seeing better prices. In May, the index for farmgate prices hit 241 points. That’s nearly 10% more than in March, and 47% higher than in May 2024. Yet Dutch slaughter numbers are falling. Almost 8% fewer cattle were slaughtered compared to the same period last year. What’s behind it? A tight global supply. Drought in the US and Canada. Falling production in France. Meanwhile, demand for slaughter cattle remains steady.

Imports aren’t making much difference. While the EU is bringing in more beef, it’s doing little to ease prices. France remains Europe’s top beef producer, followed by Germany and Spain. The Netherlands ranks seventh.

Agrimatie.nl