February 15, 2005

US beef production down in 2004

United States total beef production for 2004 declined by 1.7 billion lbs. from 2003. Total beef production was 24.5 billion pounds or six per cent lower than last year. Weekly slaughter rates in 2004 were generally smaller, due to reduced slaughter cattle imports, smaller domestic supply, an increase in heifer retention, smaller cow kill and unfavorable packer margins.

The slaughter of individually fed cattle was six per cent smaller than in 2003 at 27 million head and cow and bull slaughter was 1.05 million head or 15 per cent smaller totaling 5.7 million head.

Reduced slaughter rates as well as a continued lack of imported feeder and fed cattle from Canada all contributed to beef production during 2004 that was the smallest recorded since 1994.

Annual carcass weights in the United States on all classes were 750 lbs., up 10 lbs. from the previous year. Analysts in the United States attributed this increase to favorable feeding conditions, a slower utilization rate and a reduction in fed cattle profitability in 2004.

The net beef supply consists of domestic production minus beef exports plus beef imports, the calculation to determine how much beef is in the system that will be used by American consumers.

Net beef supply in the United States in 2004 was the second largest in history totaling 27.9 billion lbs, from limited export potential in the United States as well as an increase in imported beef products. Beef imports in 2004 totaled 3.6 billion lbs. while exports were just over 400 million lbs.

U.S. analysts project that domestic beef production will grow in 2005 by one billion pounds. This growth is expected to come from larger slaughter totals (imports) and heavier carcass weights.

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