Beef production still in decline

11 March 2010



Excluding the week of the Thanksgiving holiday and using four full week figures to December 5, 2009, the average weekly Federally Inspected Slaughter amounted 629,000 head (640,750 in our previous report). Last year the average for the time of year was 624,750. Overall, slaughter was down 3.9% on the previous year.


Cattle and calves on feed for slaughter at feedlots with a capacity of 1,000/plus head totalled 11.1 million head on November 1, 2009 (10.5 million on October 1, 2009). The inventory was 1% above the previous year. Placements on feed lots amounted to 2.47 million in October and marketings of fed cattle during the month were 1.46 million, down 3% on 2008.
According to the US Department of Agriculture, world beef and veal production for 2009 will be down slightly to 56.4 million tons. Beef production for 2010 is also forecast to continue to decline although at a very slow rate of less than one percent.
National Beef Packing Co saw a 13% increase in their profits due to reduced live cattle purchases and lower cattle prices.  They reduced their purchases of cattle by 2.5% weekly and the cost of live cattle fell by around 7.4%.
Production increases in Brazil (4%) and India (5%) will not offset reductions in Argentina (13%), China (4%) and the United States (2%).
Export sales of raw hides  during the period under review showed China once more in their regular top position with 761,300, establishing a new lower trading range (775,100, 713,300 and 1,074,300 previously). With Hong Kong in seventh place with 47,600 (55,500, 16,900), the region accounted for a combined total of 808,900 (830,600, 730,200).
Korea was again in second place with 391,000 (375,700) followed by Taiwan with 111,200 (125,300). Next came Thailand with 77,700 (up from previous purchases of 19,700 and 14,800).
Mexico came in for 70,700 (62,900, 74,500). In sixth place again, Vietnam took 63,400  (36,700, 70,500).
Italy was the last of the larger purchasers with 23,900 (26,500, 52,500). Smaller amounts went to Brazil 9,900 (6,000) and Japan 7,500 (28,100, 12,900). Egypt bought 5,500 (900); Tunisia 2,900 (3,000); India 2,400 (4,500, 10,900); Germany 2,400 and Pakistan 800.
The only reports of kip sales were 3,900 to Italy and 1,400 to Korea. Split sales over the period were minimal with lots of cancellations and adjustments.
Italy took top spot in the wet-blue market taking 199,700 (160,000, 52,500).
Other sales of wet-blue for export during the period under review showed China in second place with 171,200 (214,400, 69,600, 214,000). Along with Hong Kong’s purchases of 21,600, the region took a combined total of 192,800).
Mexico was in third place with 110,900 (69,800, 135,900); then Taiwan with 49,000 (57,600, 53,800); the Dominican Republic with 25,600 (16,000, 16,100); Thailand 25,200; Vietnam 19,300 (48,000, 25,700); Korea 12,480 (14,300,  18,000); Brazil 8,000;  and Japan 3,000 (1,400, 9,100).



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