January 4, 2007

Colorado storms may repeat 1997 disaster

About 1,000 cattle were found dead in south-eastern Colorado, US after two major storms buried the region in snow.

About four feet (1.2 meters) of snow blanketed the area last week, and heavy winds created drifts as tall as eight feet, leaving cattle searching for food and ranchers unable to find their livestock, said Christi Lightcap, spokeswoman for the state Agriculture Department.

The death toll might break a 1997 record, according to Lightcap. An October blizzard in 1997 resulted in a loss of 30,000 cattle at a cost of US$ 28 million.

Lightcap expects a similar disaster this year. Colorado produced about 2.65 million head of cattle in 2002, the 10th-most of any state, according to the USDA.

The threat to livestock supplies sent cattle prices in Chicago to their highest since Sept 9. Higher cattle costs might hurt profit margins for US meatpackers like Tyson Foods, Cargill Inc, Swift & Co and Smithfield Foods Inc to name a few.

Cattle prices reached a record high at US$ 1.1925 on Sep 7 as feeder-cattle supplies from last year's calf crop dwindled.

The US is the largest producer, importer and consumer of beef.