Beef prices are rising rapidly: consumers are turning away from meat!

Beef prices are rising rapidly: consumers are turning away from meat!

In Styria, cattle production is struggling with dramatic declines. According to Werner Habermann from ARGE Rind Austria, there are currently only 9,277 cattle farmers left in the region, and almost 800 businesses have closed down since 2020. This led to a decline in cattle numbers by almost 12,000 animals. The causes are varied, but the main problem lies in the small structures of the companies and a significantly deteriorated economic efficiency in production. Habermann explains that production costs in Austria are high compared to other European countries, which puts a heavy burden on breeders' incomes. Rising operating expenses, especially for energy, are making the situation even worse. This situation also has a noticeable impact on beef prices, which have increased by two euros per kilogram since 2020. The current price for conventional beef is 13.88 euros, which will continue to place a heavy burden on consumers today-news.eu determines.

Rising prices and consumer behavior

The price increases are primarily due to declining production and strong export markets. Since 2015, the number of slaughters has fallen by 25 percent, making Austria's beef prices above average compared to Europe. Those looking for alternatives often switch to cheaper pork. This development is not new: According to Habermann, there is an increased awareness of quality among consumers, who tend to eat less meat but switch to high-quality alternatives. In addition, the looming Mercosur free trade agreement, which will allow cheaper beef imports from South America, is leading to concerns about the future competitiveness of domestic producers.

At trading companies such as Spar and Rewe, the price increase is being reinforced by increased procurement costs and other expenses, while Hofer is already expecting a decline in demand for beef. Customers are increasingly leaning towards cheap protein sources, which could end the historic price rally, according to Hofer. This all happens against the backdrop of a cattle industry that is shockingly small, with an average of just 27 animals per farm. Styria could therefore be facing a decisive turning point that will affect not only the industry itself, but also consumers in the coming years.