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The Midwest Cattleman · March 10, 2022 · P3

                     March 10, 2022   Volume 28   No. 3

              RUSSIAN INVASION IS BAD NEWS                                                 TIGHTENING SUPPLIES
                   FOR U.S. MEAT CONSUMERS                                              By Stephen R. Koontz, Department of Agriculture and
                                 By Jennifer Shike                                        Resource Economics, Colorado State University
         Will the expected sanc-                                              Cattle and beef markets  and abundant supplies at the
      tions on Russia impact glob-                                          continue to show  good and  farm and ranch level. These
      al meat trade and demand?                                             improving      strength     into abundant supplies have com-
                                                                            2022.  The opening weeks of  pounded the market dynam-
      Steiner Consulting Group
      posed this question in a re-                                          February communicate po- ics also attributable to supply
                                                                            tential tightening of, most no- chain disruptions experi-
      cent Daily Livestock Report.
         “A while back, Russia was                                          tably, feeder animal supplies  enced since the beginning of
      a major buyer of proteins in                                          into the summer. Likewise,                      continued on page 12
      the world market.  We still           In the last decade, Russia      the strong volumes of fed
                                                                            slaughter suggest that the
      remember when prices for           has become self-sufficient in
      chicken leg quarters in the        providing its own meat pro-        substantial volume of long-
                                                                            fed cattle are being worked
      U.S., or the price of beef in      tein.  According to USDA’s
      Brazil, would be greatly af-       Foreign Agricultural Service       through.  All this  is reason-
                                                                            ably bullish news for cattle
      fected  by events  in Russia.      data, as recently as 2010,
      That is no longer the case,”       Russia relied on pork im-          markets.    And a fairly sub-
                                                                            stantial change from the past
      Steiner Consulting Group
      wrote.                                          continued on page 10  three years of large numbers
                                                                             THE CONTRIBUTION OF HEIFERS PLACED IN
                RECORD BEEF EXPORTS IN 2021                                  FEEDLOTS TOWARDS ESTIMATED NATIONAL
       By Josh Maples, Department of Agricultural Economics, Mississippi State University
                                                                                             HERD CONTRACTION
         The latest monthly  Live- setting year for beef exports                By Elliott Dennis, Livestock Marketing and Risk Management Economist
      stock and Meat International  that exceeded expectations.               Beef cow herds generally  vious year. This signals to the
      Trade  dataset was recently           According to the report,        consist of four types of cattle:  market that fewer feeder cattle
      released and included the De- during December 2021, beef              bulls, cows, both bred and devel- are expected to be delivered to
      cember trade estimates. This  exports totaled 288 million             opment heifers, and feeder cat- the market in the coming year.
      release provides a complete  pounds.  This was one per-               tle. Producers use bulls, cows,      A significant amount of at-
      look at beef trade during  cent above December 2020                   and heifers to make feeder cat- tention  has been given to the
      2021 which was a record  levels and exports to main-                  tle. Heifers are either retained  accelerated pace of cow slaugh-
                                         land China saw the biggest         from the producers' feeder cat- ter in the United States, and
                                         increase and exports to Mex-       tle or are purchased from heif- rightfully so. The pace of beef
                                         ico experienced the largest        er development programs to  cow slaughter in 2021 finished
                                         decline among the top desti-       replace cows as they move be- with approximately 10% more
                                         nations. Imports during De-        yond their reproductive life. A  beef cows harvested in 2021
                                         cember totaled 273 million         beef cow herd grows, both indi- than in 2020 and 12% more
                                         pounds.                            vidually and nationally, when  than in 2019. This is the most
                                                      continued on page 10
                                                                            the number of cows and heifers  aggressive year-over-year beef
                                                                            is larger this year than the pre- cow slaughter since 2016. This
            AMERICAN AGRICULTURAL EXPORTS                                   vious year. This signals to the  accelerated slaughter has been
                 SHATTERED RECORDS IN 2021                                  market that more feeder cattle  helped by larger consumer
         The American agricultural          “These      record-breaking     are expected to be delivered to  incomes from personal sav-
      industry posted its highest  trade numbers demonstrate                the market in the coming year.  ings, government transfers,
      annual export levels ever re- that U.S. agriculture is in-            Herd  contraction  is  when  the  and assistance programs. This
      corded in 2021, Secretary of  credibly resilient as it contin-        number of cows and heifers is  combined with consumer ex-
      Agriculture Tom Vilsack an- ues  to  provide  high-quality,           smaller this year than the pre-                 continued on page 14
      nounced recently.  The final  cost-competitive farm and
      2021 trade data published                        continued on page 12
      by the Department of Com-                                                                            Coming Sales-46
      merce shows that exports of                                                                          Life is Simple-5
      U.S. farm and food products                                                                          Market Report-8
      to the world totaled $177 bil-
      lion, topping the 2020 total                                                                         Agribusiness
      by 18 percent and eclipsing                                                                          Directory-44
      the previous record, set in
      2014, by 14.6 percent.
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