France, one of the largest producers and buyers of beef, has seen its market hit by a weak economy. While other European economies have experienced strong growth – recovering to pre-crisis levels – France’s economy has been stagnant. It is only expected to grow by a modest 0.7% this year.
Inevitably, this means beef prices have been hit hard. According to EBLEX, Grade R cow forequarter prices were hit hard, falling by 22% compared to the previous year. Hindquarters were down by 10%. These sharp falls will make some farmers reconsider any possibility of exporting to the country.
Trading conditions in the UK and Ireland, especially for young bulls, have not helped matters. The decline in consumer confidence in France and relatively high unemployment (10%) are other factors for the price falls.