February 4, 2013

Texas' 2012 cattle herd down 5% due to drought

As the region was hit by a multiyear drought, Texas saw its herd shrink 5% to 11.3 million head in the past year.

The drought that scorched the Southern Plains last summer helped shrink the nation's herd to its smallest size in more than six decades and encouraged the movement of animals to lush fields in the northern and western US, a new report shows.

The National Agricultural Statistics Service reported that the US inventory of cattle and calves totalled 89.3 million as of January 1. That was down by 1.5 million cattle, or 2%, from this time a year ago. The agency says this is the lowest January cattle inventory since 1952.

It does two counts per year, in January and July. The January report had been eagerly awaited because it shows the impact of the drought as it spread across the nation last summer and provides a state-by-state breakdown documenting the shift of animals north.

Nebraska's herd shrank 2% to 6.3 million as the drought spread north this summer. In Kansas, also hit hard, the number of cattle shrank 4% to 5.8 million as ranchers sold off animals when pastures dried up and the price of hay skyrocketed.

By contrast, North Dakota ranchers expanded their herds by 6% to nearly 1.8 million, while South Dakota's cattle numbers grew 5% to 3.8 million. Montana, Idaho and Washington also boosted their herds.

Glynn Tonsor, a Kansas livestock extension specialist, said the shift away from drought-stricken areas makes sense.

"It doesn't surprise me that the Southern Plains continue to have a pullback in the number of cows, and it doesn't surprise me that the Northern Plains has been increasing," he said.

The northern growth did not make up for losses elsewhere, however, and the repercussions are being felt in the meatpacking industry. Cargill Beef, one of the nation's largest processors, announced in January that it will idle its slaughterhouse in Plainview and lay off all 2,000 employees because there's less work. For consumers, fewer cows will mean less beef and higher prices down the line, particularly as overseas demand increases, Tonsor said.