Will expansion fever keep more cows at home?

Nevil Speer

July 13, 2015

2 Min Read
Industry At A Glance: What are the implications of declining beef cow cull rate?

Beef cow slaughter, measured as a percentage of the beef cow inventory, is an important determinant of the following year’s cattle inventory. With that in mind, the front half of the year generally serves as a fairly good indicator of what happens at the back end of the year – barring any major weather disruptions.  

Through the first half of 2015, the beef cow slaughter rate is on pace to fall under 4% for the first time since 2005 (final slaughter numbers through June will be confirmed in the coming weeks). That’s especially important given that 2004 and 2005 were the only years since 1996 that U.S. beef producers grew the cowherd, although growth in those years occurred at a very small, incremental pace. Moreover, 2015’s rate through June is nearly 1% below the 10-year average.

It appears that beef producers have turned the corner in terms of culling cows, at least through June; they’re looking to retaining more cows as one means to rebuild the cowherd. Meanwhile, during the past 10 years, the average slaughter rate during the second half of the year increases by nearly a half percentage point compared with the first half of the year. If that relationship holds in 2015, it’s likely that beef cow slaughter between July and December will fall below 5% - making the annual beef cow slaughter rate 9% or lower in 2015 than the year prior. 

january to june cow slaughter rates

With this trend in mind, 2015 is on track to establish a larger cow inventory for 2016—that’s especially true given that reduced culling rates also generally correspond to more aggressive heifer retention. Watch for more on that in weeks to come. 

How do these observations line up with what you’re witnessing in your area? How do you foresee weather and various market signals shaping up between July and December? What’s your perception of the general consensus among beef cow producers in the years to come? 

Leave your thoughts in the comments section below.  

Nevil Speer is based in Bowling Green, Ky., and serves as vice president of U.S. operations for AgriClear, Inc. – a wholly-owned subsidiary of TMX Group Limited.  The views and opinions of the author expressed herein do not necessarily state or reflect those of the TMX Group Limited and Natural Gas Exchange Inc.

 

You might also like:

7 tools to win the war against cattle flies

7 U.S. cattle operations that top the charts for their stewardship efforts

How to prevent foot rot in cattle

Why baleage has an advantage over dry hay

Can ranching be sustainable without profits? Burke Teichert says no

Can we measure cow efficiency? Not as a single trait

Best tips for controlling flies on cattle

About the Author(s)

Nevil Speer

Nevil Speer serves as an industry consultant and is based in Bowling Green, KY.

Nevil Speer has extensive experience and involvement with the livestock and food industry including various service and consultation projects spanning such issues as market competition, business and economic implications of agroterrorism, animal identification, assessment of price risk and market volatility on the producer segment, and usage of antibiotics in animal agriculture.
 
Dr. Speer writes about many aspects regarding agriculture and the food industry with regular contribution to BEEF and Feedstuffs.  He’s also written several influential industry white papers dealing with issues such as changing business dynamics in the beef complex, producer decision-making, and country-of-origin labeling.
 
He serves as a member of the Board of Directors for the National Institute for Animal Agriculture.
 
Dr. Speer holds both a PhD in Animal Science and a Master’s degree in Business Administration.

Contact him at [email protected].

Subscribe to Our Newsletters
BEEF Magazine is the source for beef production, management and market news.

You May Also Like