USDA Confirms Cattle Fears

Beef cow numbers in the United States have hit a 50 year low following the scorching drought of 2012, the United States Department of Agriculture (USDA) has confirmed in the semi-annual cattle inventory released in January.

US hay stocks are low. Farmers produced nine per cent less than in 2011 and pasture, grain and soybean growth has been poor, exacerbating forage issues as prices have soared.

Now standing at 29.3 million, beef cattle numbers have decreased by three per cent in a year and 11 per cent from the recent peak in 2007. Particular effects have been seen in feeder cattle with feedlot inventories down five per cent on the year to 13.4 million.

USDA data shows feedlot inventory impact with a fall of five per cent to 13.4 million. Young stock headage is down to 34.3 million, the lowest level since 1949.

In Colorado 500lbs+ steers fell by 90,000 in the year with Wyoming (-20,000), Arizona(-10,000) and Alabama (-5,000) all showing marked decreases.

The overall Texas cattle inventory reported a drop of 600,000.

Beef industry fears mounted over herd and supply volume through the winter and caused more cattle to be retained as breeding stock. This exaggerated the decrease but showed a generally stable replacements outlook in the report due to herd rebuilding plans.

This decline through the year came after drought systems scorched the soybean and corn fields of Indiana, Iowa and Illinois. At its July peak the drought extended from the intermountain west, across the Great Plains and into the mid and south west - 60 per cent of the US was in drought conditions.

Dr David Anderson of Texas A and M Agrilife said central areas have experienced a string of dry summers. He has noted a 22 per cent drop in Texas cattle numbers since 2007.

Dr Anderson added that farmers have been prompted to keep back heifers for breeding by the last month's market levels. There has been a heifer retention rise of nine per cent in Texas through 2012.

The situation was caused and will be rectified by the weather, according to Chris Hurt, Purdue University Economist. Replenished pastures, hay meadows and crop field will only happen if precipitation rates rise.

Looking ahead, Dr Hurt’s outlook into the spring is for feeder prices to strengthen as supply falls.

TheCattleSite senior editor, Sarah Mikesell, will be finding out more about the US and global cattle outlook at the National Cattlemen's Beef Association meeting this week in Tampa, USA. Watch Headline News and Analysis for show coverage.