How has the demand for beef and lamb changed in the EU in 2021?

Overall beef demand in Europe was under some pressure in 2020 and this will continue until the end of 2021.

In the EU, overall demand has been negatively impacted by ongoing covid-19 restrictions and weak demand from the foodservice sector. However, the demand for European-produced beef has grown and cattle prices in the EU have been on the rise lately. This reflects strong retail sales and, importantly, limited livestock stocks. The imported product has suffered from a drop in demand levels, as it is most often used in food service outlets. A similar trend is being seen in the UK, where strong retail demand for British beef has helped drive prices to exceptionally high levels while imports have fallen.

In Germany, fresh beef purchases by households rose by 14% in the first quarter of 2021, although ground beef sales volumes were more stable.

Retail growth in France over the same period was not as strong. Please note that both Germany and France implemented eating out restrictions in mid-March last year, so this affected retail volumes in the second half of the first quarter of 2020.

Reports show that beef demand in Europe tends to decline at this time of year, with rising temperatures reducing demand for hearty beef products. While temperatures were unacceptably cold until recently, that has now changed and demand for beef on the continent could decline. On the other hand, the reopening of catering outlets could help mitigate the potential impact of this factor, although this may be favorable for imported rather than European beef.

Mutton

Recently, supply reduction trends have dominated the European lamb market. Farm-farm prices were unusually high in the EU and the UK, and global supplies were relatively low. Ultimately, high prices and lack of supply are expected to dampen overall demand this year. So far, this has been facilitated by the limited number of open food service outlets due to COVID-19.

However, so far this year, French retail mutton sales growth has been strong, up 15% in January-March from a year earlier. Unlike other meats, retail sales of mutton in France fell last year despite the lack of opportunities to eat out. There appears to be some recovery in retail demand for mutton this year, which has also helped support the recent high price levels.

 And this fact will be taken into account when preparing the monthly analytical report Meatinfo.ru