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The Midwest Cattleman · August 11, 2022 · P3

                     August 11, 2022   Volume 28   No. 6

            AMERICAN FOODS GROUP TO BREAK                                         DROUGHT WEIGHING ON SUMMER
         GROUND ON NEW MISSOURI BEEF PLANT                                                      CATTLE MARKETS
                                By Greg Henderson                                           By Derrell Peel - Oklahoma State University
         American Foods Group,  posed $450 million plant will                 Drought advanced rapidly  Drought Monitor map showed
      LLC (AFG) announced re- have a daily harvest capacity  across Oklahoma in July.  At  that 100 percent of the state
      cently that it has secured  of 2,400 head                             the end of June, the Drought  was dry with 99.81 percent in
      final backing and will break          “The state of Missouri and  Monitor showed that 30.76  some stage of drought.  In fact,
      ground this month on its  the people of Warren County  percent of the state was in  92.11 percent of the state was
      new, state-of-the-art beef  have been outstanding part- some stage of drought (D1- Severe drought (D2) or worse.
      harvest plant in  Warren  ners, and we look forward to  D4) with another 15.15 per-                        The northern one-third
      County, Missouri.  The pro- becoming a member of their  cent abnormally dry (D0).   of Oklahoma received good
                                                    community,” Steve  Four weeks later, the July 26  rains of up to three inches in
                                                    Van Lannen, Pres-                                                      the last week. This
                                                    ident and COO of                                                       will briefly push
                                                    American       Foods                                                   back drought con-
                                                    Groups said in a                                                       ditions in that
                                                    statement.      “Con-                                                  region, but triple
                                                    sumer demand for                                                       digit     tempera-
                                                    beef is growing,                                                       tures are fore-
                                                    and we are invest-                                                     cast to return in
                                                    ing in this project                                                    August and little
                                                    to fill an indus-                                                      follow-up rain is
                                                                                                                            continued on page 10
      American Foods Group proposed beef plant. (AFG)  continued on page 10

        MID-YEAR CATTLE REPORT CONTINUES TO                                         JULY REPORT SHOWS DECLINING
          SHOW DECREASING CATTLE INVENTORY                                                   CATTLE INVENTORIES
                       By Dr. Kenny Burdine, Extension Professor,               By James Mitchell, Livestock Marketing Specialist, University of Arkansas
                      Livestock Marketing, University of Kentucky             USDA recently published  bers. The full report is avail-
         In late July, USDA-NASS         but high production costs and      the July Cattle Inventory,  able on the USDA-NASS
      released their mid-year es- strong cull cow prices have               which showed lower year- website.
      timates of US cattle inven- also been factors.                        over-year    inventories     for     Total cattle inventories
      tory.  As expected, the report        Heifer retention estimates      most reported categories.                       continued on page 12
      showed lower inventory across  also paint a picture of a cow-         While inven-
      most all cattle types. All cat- herd that is shrinking in size.       tories posted
      tle  and calves were estimat- I always like to review the             a year-over-
      ed to be down by just under  heifer development number,               year decline,
      2%, while beef cow inventory  which was estimated to be               NASS      esti-
      was estimated down by 2.4%.  down by roughly 3.5%. Figure             mates     were
      This is very consistent with  1 expresses this number as a            higher than
      beef cow slaughter volumes,  percent of beef cow inventory            pre-report
      which have been running  each year, which is actually                 expectations,
      14% higher than 2021. In  my  preferred way to  think                 with      ana-
      nominal terms, 252 thousand                     continued on page 10 lysts expect-
      more       beef                                                       ing     larger
      cows       have                                                       decreases in
      been harvest-                                                         cattle   num-
      ed     through
      the first week
      of July this                                                                                          Coming Sales-30
      year than last
      year. Much of                                                                                         Life is Simple-5
      this has been                                                                                         Market Report-8
      due to dry                                                                                            Agribusiness
      conditions in                                                                                         Directory-28
      parts of cat-
      tle    country,
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