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Herd Expansion

BRG

Well-known member
The Cattle Markets: No Herd Expansion In Sight

The U.S. cow-calf sector has been profitable since 1999 and returns the last three years have been the highest the industry has experienced in over 25 years. Ordinarily a string of profitable years would be enough to encourage producers to increase their herd size, primarily by holding back heifers. But that is not what’s been taking place so far in 2007.

During the first quarter of 2007 beef and dairy cow slaughter combined were about 15% larger than in 2006. The biggest slaughter increase was in the beef cow sector as federally inspected beef cow slaughter was 17% greater than 2006’s, whereas dairy cow slaughter was up approximately 13% compared to last year. It looks like cow slaughter will remain large relative to last year until mid-to- late spring. Percentage increases in cow slaughter will likely moderate by late spring because cow slaughter last year increased sharply from about June forward.

To gauge whether producers are actually reducing the size of the U.S. herd, it’s useful to examine the ratio of female (cow and heifer) slaughter to steer slaughter. When female slaughter exceeds steer slaughter, it indicates herd liquidation is underway. When female slaughter falls far below steer slaughter, herd rebuilding is usually underway. So far this year female slaughter has averaged about 97% of steer slaughter. The implication is that U.S. producers are still holding the nation’s cowherd steady. If forage production prospects this summer improve substantially compared to last year, it could still encourage some producers to think about herd expansion, but that hasn’t happened yet.
 

the_jersey_lilly_2000

Well-known member
Down here in Texas, with the last 2 years of drought, and this years moisture bein good, folks that sold off all or part of their herds are lookin to buy replacement heifers.
Went to pick up a ton of feed yesterday for Lil Lilly's Commercial pen of 3 and they asked when the sale was, they have had numerous people askin when and where good replacements will be for sale. So, hopefully this will mean good prices come sale day at the fair!!! woo hoo.
 
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