May 31, 2012

US cattle slaughter drops by 6% in April

USDA's Cattle Slaughter Report has revealed the declination of cattle slaughter, for April, by 6% on-year, to 2.53 million head, in comparison to beef production in April last year which declined by 3%, to 1.96 million pounds (889,042 tonnes).

During January to April, US cattle slaughter declined 4% on year ago levels, totalling 10.42 million head.

The reduction in cattle slaughter in April occurred across almost all categories - with the exception a slight increase in dairy cow numbers. US steer and heifer slaughter has declined since late last year, falling 4% and 5%, respectively over the four months to April - representing 78% of the overall federally inspected cattle throughput.

Meanwhile, influenced by the tight cow supply, beef cow slaughter declined 6% on-year during January to April, accounting for 10% of the total cattle slaughter during this period. Although dairy cow slaughter increased on-year during April and over the first four months of 2012, numbers in April reportedly fell 14% from March.

Following the reduced cattle slaughter in the US since the beginning of 2012, Steiner Consulting expects that US cow slaughter will remain low through to October, with domestic beef supplies to be boosted by more imported product.

US lamb slaughter also declined 14% on-year in April, following a surge in slaughter during January and February in preparation for Easter. Over the four months to April 2012, US lamb slaughter was down 2% on-year, to 655,000 head - although reportedly heavier average carcase weights helped to offset the fall in slaughter.

In contrast to both cattle and lamb slaughter, US hog slaughter increased 2% in April, with the total number over January to April increasing 2% on-year, to 36.65 million head. The latest USDA Livestock, Poultry and Dairy Outlook indicated US pork production is likely to increase slightly in 2012, although much of the growth is expected to be driven by export demand.

January to April 2012 commercial beef, lamb and pork production totalled 16.1 billion pounds (7.3 million tonnes) - down slightly from the corresponding period in 2011. Beef production declined 2% from the volume registered during January to April last year, while lamb and pork production was up 2% and 3% on-year, respectively.