Drought and feed shortages force EU livestock farmers to reduce herds

Drought, shortages of roughage and rising costs are increasing pressure on the EU livestock sector. Major beef producers, including Germany, France and Italy, are already facing tighter feed supplies, prompting some farms to increase culling and reduce herd sizes.

In Germany, prolonged heat and drought pushed cow slaughter up 6% y/y. Pasture conditions deteriorated in several regions, forcing farmers to start using winter feed reserves earlier than usual. A similar situation is developing in France, where dairy cow slaughter increased by 8.8%, while beef cow slaughter declined by 10.4%.

In Italy, roughage production fell by 30–40% in some regions. Higher irrigation and electricity costs are adding further pressure by increasing livestock production costs. Market participants do not rule out further herd reductions by some producers.

EU beef trade is also changing. In June, French beef exports declined by 13.8% y/y, while shipments to other EU countries fell by 17.2%. Exports outside the EU rose by 34.7%, but this was not enough to offset the decline in intra-EU shipments.

The average price of R-grade cattle in the EU stood at around €6.27/kg in early September. Prices remain relatively stable for now, but further deterioration in feed availability and herd reductions could tighten EU beef supply in the coming months.

Tags: compound feed, herds, feed shortages, weather conditions, EU