October 5, 2009
US' CWT to implement third cow cull this year
A group of dairy cooperatives and dairy farmers in the US said it will implement its third herd retirement of 2009 and fourth in the last 12 months in an effort to boost milk prices. Bids are due October 15.
Cooperatives Working Together said its previous three culls removed 226,000 cows from the nation's herd.
Livestock analysts Steve Meyer and Len Steiner estimate the next round will remove 70,000 to 80,000 heads, with the majority of them coming to market in November and early December.
While US beef producers have worried that increased dairy cow slaughter might depress overall beef prices, much of the rise in cow slaughter has been offset by fewer beef cows going to market, the analysts wrote in their Daily Livestock Report. They expect the same to continue in the fourth quarter, and estimate only a 1.5 percent increase in total US cow slaughter during the same period.
Meanwhile, Congress has yet to vote on a US$350 million dairy farmer aid package, which could prompt dairy farmers to hold off on entering bids in the herd retirement program.
