Billa increases beef procurement to support Austrian farmers amid drought

Beef prices in Austria have dropped by approximately one-third in recent weeks due to a drought-induced shortage of animal feed. This scarcity has forced farmers to slaughter cattle earlier than planned, resulting in a market surplus that exceeds current demand.

To support local producers and stabilize the market, the supermarket chain Billa has announced it will increase its beef procurement by 20 percent. Billa CEO Erich Szuchy stated that this move aims to create additional sales opportunities for Austrian farmers. These purchases will be made at fixed prices previously agreed upon with the producer community ARGE Rind. Billa also plans to launch various promotional activities focused on beef in its stores.

While prices are currently low, experts suggest this trend may be temporary. Werner Habermann, managing director of ARGE Rind, expects prices to dip further in September but predicts a rise in producer prices starting in 2027 due to expected shortages across Austria, France, Bavaria, and Switzerland. Additionally, Erste Bank is offering financial assistance to affected farmers through interest-free overdraft facilities of up to 25,000 euros.