Drought takes its toll on US cattle herd
US cattle producers are suffering as drought, especially in the south and west of the country, combined with rising inflation, input costs, and poor pasture are causing cattle to be marketed earlier than normal.
The August Cattle on Feed report from the US Department of Agriculture showed that the number of heifers and heifer calves on feed were 4.45 million head, up 3% year on year.
These animals are being removed from pasture and placed in feedlots, which will reduce the number in the breeding herd for next year’s crop of calves.
More heifers entering the slaughter pipeline now not only means a smaller cattle inventory for 2022, but a reduced number of calves for 2023 and beyond.
Producers have to make ends meet and turn a profit while they can but questions are already being asked if a decline in the total cattle and calf herd from the last count of 98.8 million will result in higher beef prices next year.
The offsetting factor is that the amount of beef already in cold storage is currently 29% above the same period in 2021, which should be sufficient to temper prices at the grocery store end of the supply chain.
