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MID-YEAR CATTLE feed numbers are not sustain- The Midwest Cattleman · August 11, 2022 · P10
continued from page 3 able and beef production lev- AMERICAN FOODS
els will drop. impact. The project will in-
about it. The blue line tracks Since most cow-calf oper- continued from page 3 clude a harvest floor, carcass
this for each mid-year report ations calve in the spring, try need for additional hook chillers, fabrication area,
back to 1973, while the black most culling occurs in the space while meeting the rendering, further processing
line is simply the average fall, after spring-born calves needs of our partners, cus- area, storage coolers, freez-
from all those years. There are weaned. For that reason, tomers, and consumers.” ers, and loading docks.
was no estimate in 2016, the January inventory report AFG said the American Foods Group
which is why the gap exists. tends to be a better measure 500,000-square-foot slaugh- is a family-owned, U.S. beef
In general, expansion occurs of the size of the US cowherd. terhouse near Foristell, MO, processing company based in
when heifer retention exceeds But, there is no doubt that would employ 1,300 workers Green Bay, WI, with locations
the long run average, while 2022 is going to be another with a payroll of more than throughout the Midwest.
contraction occurs when heif- year of contraction for the US $80 million annually, gener- Drovers
er retention is below the long beef cow herd. The combina- ating $1 billion in economic
run average. Note that reten- tion high culling levels and NEW BEEF PROCESSING PLANT SET TO BREAK
tion has been about 1% below decreased heifer retention are
the long run average for the likely to result in something GROUND IN MO
last four years. like a 3% reduction in the size By Will Robinson
One number from the re- of the US cow herd by Janu- American Foods Group is ket to create more competition
port that looks strange at first ary 2023. Weather patterns, set to break ground on a new for our cattle.”
glance is the cattle on feed and prices for calves and cull cattle processing facility in Chinn said the plant will
estimate, which was actual- cows this fall, will ultimately Warren, County Missouri. hopefully incentivize more
ly flat from last year. Since determine how many more Missouri Ag Director Chris cattle to be fed out in what is
calf crops have been getting cows leave the herd between Chinn tells Brownfield the already a top-ranking cow/calf
smaller since 2018, one would now and the end of the year. coming $450 million plant production state.
expect on feed inventories to A full summary of the July 1, will process 2,400 cattle daily. “We see this as an oppor-
follow suit. However, consis- 2022 inventory report can be “They’ll purchase from sale tunity for many family farms
tent with decreases in heifer seen in Table 1 below. barns, direct off the farm; to bring that next generation
retention, more females are they’ll purchase as few head back home to the farm or
being placed on as one, or they’ll purchase an ranch,” Chinn said. “And we
feed. Plus, dry entire goose neck trailer full, see it as a great opportunity to
weather in much or a semi-trailer full,” she said. help grow our rural communi-
of the country Missouri Cattlemen’s As- ties.”
has pushed cat- sociation President Bruce AFG said the expected
tle into feed- Mershon tells Brownfield the 500,000-square-foot plant will
lots sooner than plant will help boost local employ 1,300 workers.
would have nor- market competition and safe- Mershon said he appreci-
mally been ex- guard against a lack of pro- ates the leg work put in by the
pected. As we cessing capacity like the back- University of Missouri, Farm
continue to see logs caused by the Holcomb, Credit Services, and others in
decreases in cat- Kansas plant fire and Covid getting the American Foods
tle inventory, 19. Group plant to come to Mis-
these cattle on “This is a real boost for us souri. Brownfield interviewed
locally,” Mershon said. “And Mershon at the 2022 Cattle
DROUGHT WEIGHING summer grazing programs we hope that happens all Industry Summer Business
continued from page 3 though heavy feeder prices across the country as we de- Meeting in Reno, Nevada.
velop additional slaughter
in the forecast as far as fore- are seasonally higher through capacity and we’ll be able to brownfieldagnews.com
casts reach into the first half the summer. have new players in the mar-
of August. Cattle producers The July volume of slaugh-
will continue to face tough de- ter cows and bulls was more
cisions in the coming weeks. than double last year in Okla-
Rapidly advancing drought homa auctions. The cull cow pace in July. Beef cow slaugh- cent year over year so far this
conditions in July pushed market was overwhelmed ter through mid-July is up year.
Oklahoma auction volumes with prices sharply lower. In 14.1 percent year over year The July 1 inventory of
higher as more cows were Oklahoma City, boning cow for the year to date. Year over heifers in feedlots was up 2.9
culled and increased feed- prices decreased from $89.51/ year percent increases in beef percent over last year and con-
er cattle numbers indicated cwt. the last week of June to cow slaughter may be smaller firms that heifers continue to
early weaning of calves and an average of $66.70/cwt. the in the last part of year (com- be diverted into feeder chan-
early marketings of sum- last two weeks of July. Around pared to increased slaugh- nels rather being retained for
mer grazing cattle. Calf the region, boning cow pric- ter last year). However, beef breeding. The mid-year cat-
prices dropped into July as es were similarly lower from cow slaughter would have to tle inventory showed that the
increased volumes of early Kansas south through Texas. drop to a level less than six beef cow herd was down 2.4
weaned calves accelerated Cull cow prices generally de- percent higher year over year percent year over year and
seasonal price pressure. Calf creased around the country for the remainder of the year the inventory of beef replace-
prices recovered somewhat in July with the sharpest de- before the annual beef cow ment heifers was down 3.5
the last week of July as cattle creases in the central and slaughter would not be dou- percent from last year. The
markets generally firmed up. southern plains. In some mar- ble-digit higher for the entire beef industry is poised to see
Large seasonal supplies of kets, cull cow prices recovered year. Heifer slaughter, which the largest single year beef
heavy feeder cattle were also slightly the last week of July. represents decisions sever- cow herd decrease in more
likely augmented by drought- Nationally, beef cow slaugh- al months ago about reduced than 35 years.
forced movement of cattle off ter continued a double-digit heifer retention, is up 3.9 per-