Page 12 - MWC 08-5-2021s

The Midwest Cattleman · August 5, 2021 · P12
LARGE COW SLAUGHTER CONTINUES GROUND BEEF DEMAND

By David P. Anderson, Texas A & M AgriLife Extension Service By James Mitchell, Livestock Marketing Specialist, University of Arkansas
Cow slaughter Our colleague David An- Southern Plains slaughter
continues to run derson at Texas A&M wrote cow prices have averaged 8.1
ahead of a year an article that you’ll see percent above 2020 and 14.7
ago, led by beef here as well that provided percent above 2019 prices.
cows. Even with an update on cow slaughter Fresh 90% lean trimmings
larger slaughter, and cull cow markets (Large have averaged 4 percent
prices are ahead Cow Slaughter Continues). below 2020 prices but 11 per-
of last year. Over I thought I would continue cent higher than 2019 prices.
the last three this discussion by examin- Lower dairy cow slaughter
months, beef ing one of the main drivers and beef imports (the other
cow slaughter of cull cow markets, ground two sources of lean trim)
totaled 818,000 beef demand. have helped support cull cow
head, the most To review, cull beef cows and ground beef markets.
since the 837,000 contribute to ground beef Ground beef demand is the
during the same period in Slaughter in Region 9, which production as a source of 90% other factor driving cull cow
2010. Total cow slaughter includes Arizona, California, lean trimmings, which are values and lean trimmings
over the same period is the and Nevada, was the most blended with 50% lean trim- prices.
largest since 2013. At that since 2013. Region 10, the mings to make the majority Much like other meat pric-
time, the industry was reduc- Pacific Northwest (Washing- of our ground beef and ham- es, ground beef prices have
ing the number of beef cows ton, Oregon, and Idaho), had burger. The other two sources averaged higher this year.
due, mostly, to low prices and their largest beef cow cull- of lean trimmings are dairy Data through May 2021 from
then the drought in Texas ing in more than a decade. cows and lean beef imports. the Bureau of Labor Statis-
and the Southwest hit. While drought is likely driv- Fed cattle trimmings are the tics shows that ground beef
Weekly beef and dairy ing more culling, expanded main source of 50% lean trim. prices have averaged $4.04/
cow slaughter is report- cow packing capacity in the Beef cow slaughter has lb or 0.5 percent higher than
ed by region. Region 6 in- region likely skews the data. been averaging 9.9 percent 2020. Lean ground beef pric-
cludes Texas, New Mexico, Region 8 includes the rest of above 2020 slaughter and es have averaged 1.6 percent
and Oklahoma. Beef cow the mountain West and the 12.4 percent higher than and 9.9 percent above 2020
slaughter in Region 6 over Dakotas. Beef cow culling in 2019 slaughter. This means and 2019 prices, respectively.
the last three months totaled those states totaled 73,600 a larger supply of lean trim- The only way to have higher
204,000, the most since 2011. head, the most since 2019. mings from beef cull cows. All prices with larger supplies of
On the dairy side of the else equal, we would expect cull cows and lean trimmings
ledger, cow culling totaled lower cull cow and lean trim is with strong ground beef
Callaway 667,000 over the last 3 prices due to larger supplies. demand.
months, the smallest since However, this has not been
Livestock 2015. Excluding comparisons the case this year.
to 2020, dairy cow culling in
Center, Inc. the Midwest and California
are the smallest since 2015.
On I-70, 4 miles east of Culling in Texas, New Mexi-
Kingdom City, MO on outer road co, and the Pacific Northwest
are larger than prior years.
573-642-7486 Cull cow prices usually
increase from the beginning
of the year until mid-year.
Feeder Sale Southern Plains 85-90 per-

Monday cent lean cows have increased
at a normal seasonal rate
12:30 p.m. to about $65 per cwt at the
end of June, about $8 higher
than last year. National cut-
1st Thursday Night ter cows hit $67, also about
$8 above a year ago. The cow
of Each Month beef cutout and wholesale 90

6:00 p.m. percent lean boneless beef
are also above a year ago.
Special Cow Sale Cow culling tends to in-
crease seasonally from mid-
year through Fall and pric-
es tend to decline. Drought
Jack Harrison development in the West and
the course of milk prices will
573-386-2138 affect culling. Large early

John P. Harrison beef cow culling might affect
later culling.

573-386-5150