Spanish Cattle Market Adjusts to Middle East Tensions and European Demand

The Spanish cattle market is experiencing shifts in trade dynamics, driven by rising prices and geopolitical factors. While prices for young cattle meat remain elevated above €8, impacting exports to third countries, particularly the Middle East, a redistribution of supply within the European market is occurring.

Rising Cattle Prices and Export Adjustments

Increased prices for young cattle meat are prompting a decrease in exports to regions like the Middle East. Instead, these animals are being redirected to European markets – specifically Italy, France, and Germany – where they are being offered at competitive prices. This shift reflects a broader trend of adapting to global economic pressures and regional instability.

Demand Trends and Market Segmentation

Despite sustained high price levels, a downward trend in demand is being observed, with manufacturers facing challenges in placing French meat. The market for female cattle remains particularly competitive, especially for dairy and mixed breeds, contributing to the recent price increases.

Price Ranges for Different Cattle Types (March 23, 2026)

• Heavy P +/O- prim’holstein cows: €6.40 to €6.50
• P = cattle: €6.20 to €6.35 (depending on weight)
• Normandy and Montbéliarde cattle: €6.40 to €6.90 (depending on production area)
• Charolaise R cattle: €7.45 to €7.60
• Light or less-conformation Charolaise cattle (O): €6.80 to €7.30
• Good ankle females: Prices are stabilized due to ongoing slaughter animal competitions.

Impact of Middle East Conflict and Input Costs

While direct Spanish fresh produce exports to Persian Gulf countries represent a small portion (0.3%) of the country’s total exports, totaling 38,715 tonnes valued at €69mn in 2025, the broader Middle East conflict is indirectly impacting the sector through rising input costs. Fepex highlights increases in fuel and fertilizer costs, as well as rising maritime transport costs, with freight rates doubling on some routes.

Broader Economic Context

The Spanish stock market opened higher amid Middle East tensions and anticipation of central bank meetings, including the Federal Reserve. The IBEX 35 had previously dropped 1.3% on Friday, falling below the 14,000-point level. Oil prices continue to rise, potentially influencing monetary policy decisions. Markets are too awaiting U.S. Retail sales and industrial production data, as well as the German ZEW economic sentiment index.

Looking Ahead

The Spanish cattle market will likely continue to navigate a complex landscape shaped by geopolitical events, fluctuating input costs, and evolving demand patterns. Monitoring these factors will be crucial for stakeholders across the supply chain.