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The Midwest Cattleman · October 22, 2020 · P3

October 22, 2020 Volume 26 No. 10

CATTLE SLAUGHTER DYNAMICS CATTLE EXPORTS TO MEXICO SURGE
By Derrell S. Peel, Oklahoma State University Extension Livestock Marketing By David P. Anderson, Professor and Extension Economist, Texas A&M AgriLife
Extension Service
Cattle slaughter for the year-to-date through the week ending Imports of feeder cattle from Mexico usually are reported with
September 26, 2020, was down 3.6% year-over-year. This includes interest because ranchers and feeders in the U.S. import more
a 4.2% decrease in steer and heifer slaughter; a 1.2% decrease than 1 million head per year, on average. The U.S. also exports
in total cow slaughter; and a 3.7% decrease in bull slaughter so cattle to Mexico, but in much smaller numbers. In recent weeks
far this year. Varying slaughter patterns across different cattle cattle exports have surged to the highest levels in several years.
classes make it diffi- Weekly cattle exports to Mexico are reported for three cate-
cult to project where gories: slaughter cattle, breeding males, and breeding females.
slaughter will end Exports of bulls and cows for breeding have averaged about
up as the year clos- 45 head per week this
es out. year. That is just a touch
The biggest com- slower than last year’s
ponent of cattle 49 head per week.
slaughter is steer The interesting
slaughter, which changes are in slaughter
is down 4.3% year- cattle shipments. After
over-year through exporting 0 head this
late September. year, 240 were shipped
Through March, prior to COVID-19 impacts, steer slaughter was the week ending July
up 5.1% year-over-year. By the end of May, the cumulative steer 11th. That has increased
continued on page 15 to 1,271 head for the week ending September 5th. Only 329
slaughter cattle were shipped to Mexico in all of 2019. It’s also
MIGHT THE ELECTION AFFECT MEAT DEMAND? the largest weekly exports since December 2002. The last con-
By Greg Henderson sistent exports occurred in early 2018.
Several trends suggest the opportunity for exports to contin-
Could a change in administration affect America’s meat con- ue. The growth in Mexico’s cat-
sumption? Purdue University economist Jayson Lusk says it’s tle packing industry indicates
possible. Speaking with AgriTalk host Tyne Morgan, Lusk said that there is some packing ca-
researchers are noticing more partisan divide in terms of meat pacity available. Continued evo-
demand. lution in U.S. beef production
“That’s particu- rewarding USDA quality grade
larly true for highly and some grids excluding breeds
educated, more lib- suggests an opportunity to ex-
eral consumers who port Brahma fed cattle. Prices and exchange rates will play a
show weaker meat role as well.
demand compared In the late 1990s and early 2000s significant weekly ship-
to more conservative ments occurred. Weekly shipments ranged from about 1,000
consumers,” Lusk head to 3,500 head. Slaughter cattle exports had declined sub-
said. “That gap has stantially well before late December 2003 when the Canadian
continued on page 10 cow in Washington was found with BSE. High U.S. fed cattle
prices in 2003 likely depressed exports to Mexico (fed cattle pric-
es set a record high in the fourth quarter of 2003 that was not
LEGISLATION TO PROTECT CALVES AND surpassed until 2010).
In the big scheme of things these are not large numbers. But
LAMBS FROM VULTURES the opportunity to export some slaughter cattle is likely an im-
The U.S. House of Representatives portant outlet for some South Texas feeders.
passed America’s Conservation En-
hancement (ACE) Act recently by a
voice vote, effectively sending another
piece of bipartisan conservation leg- Coming Sales-30
islation to President Donald Trump’s Life is Simple-5
desk to be signed. Market Report-8
The National Cattlemen’s Beef
Association (NCBA) and the Public Agribusiness
Lands Council (PLC) said the bipar- Directory-28
tisan legislation will protect livestock
continued on page 10