January 8, 2007
 

US storms may force cattle prep prices up
 

Feedlot operators still reeling from storms that pounded prime cattle ranges in the central US likely would have to pay more to prep cattle for market in the weeks ahead.

How much more and for how long would depend on factors such as the animal losses from the storms, the weather and supplies.

The storms sent blowing snow into huge drifts that stranded thousands of animals on open range in the Oklahoma Panhandle, Kansas, south-eastern Colorado and parts of Nebraska, representing at least one-half of the nation's cattle feeding areas.

A similar storm in 1997 killed 30,000 cattle in Colorado.

The affected herds in Colorado represent about US$ 1.8 billion worth of cattle including breeding cows that will produce calves for next year's supply, Colorado State University agriculture extension agent Leonard Pruett said.

As ranchers and feedlot operators try to get operations back to normal, there already have been short-term disruptions in supplies in Colorado, Nebraska and Texas, but they shouldn't linger, Colorado State agricultural economist Stephen Koontz said.

He added in the long run, it would not seriously change the number of cattle out there or impact demand though the major disruption would be among feedlot operators who would have to feed cattle more to get the animals up to market weight. This would cost them more.

Apart from an impact on the feedlot, the cattle trapped by snow and ice could become dehydrated and hungry. This would mean a vast majority would lose weight they typically carry when they reach feedlots, said economist Gregg Doud of the Denver-based National Cattlemen's Beef Association, an industry trade group.

The price of cattle heading from the feedlot to the packing plant would increase by about 5 percent in the near term, according to Doud and Cattle Fax analyst Kevin Good.

They expect slight recovery provided the weather improves over the next few weeks.