Beef cattle herd in the USA on June 1, 2013
The quarterly survey of the US beef cattle herd as at June 1, 2013 showed a slower decline of 3% compared to the same month last year. A random survey is usually carried out of those cattle herds that are kept in units of more than 1,000 animals. The decline in cattle numbers started during the drought last summer, when feed ran out in the central cattle areas of the South West and farmers were forced to slaughter their animals. A fundamental recovery of the herds is still pending, because the lack of expensive feed is still having an effect. The category of animals stalled in feedlots was down 2%. Animals that reached market maturity in May 2013 were 2% down on the same period last year. In some regions of the southwest, there is still a high precipitation deficit.
The inevitably high slaughter volumes have put pressure on cattle prices for both feeders and slaughter cattle. A price recovery is to be expected due to the low number of young cattle. However, future demand and foreign trade must also be in line with this.
American beef imports and exports are just about in balance. At present, the net import situation is once again predominant. The shortage of domestic slaughter has pushed back exports. Only the neighboring countries of Mexico and Canada are still major buyers in exchange for live cattle. Japan remains the largest importer from the USA. US imports from Australia, whose exports are increasingly being diverted to the Chinese market, have declined in particular. New Zealand is approaching its seasonal low point ("winter period") for cattle slaughter, meaning that shipments to the USA are smaller for the time being.
It will take some time to rebuild the US cattle herd.
