April 30, 2004

US Beef Production Up Despite Falling Weights And Import Bans
 

Despite lower average carcass weights and bans on US beef imports in overseas markets, US beef production in March increased 1% from last year to 956,626 tons cwt.  Poorer cattle performance in feedlots and the early turnoff of cattle out of feedlots contributed to March carcass weights falling 4kg from February this year and 2kg below March 2003 to 336kg.

US cattle slaughter in March lifted 4% from year ago levels, as processors capitalised on rising boxed beef prices.  US Choice cutout averaged 138US¢/lb in March, up 11% from February 2004 and 15% from March last year.  However, there was a 19% decline in total March cow slaughter, as dairy producers held onto cows in response to rising milk prices, while beef cow supplies remain tight.

The light cattle kills earlier in the year, in response to the bans on US beef imports, contributed to cattle slaughter falling 6% in the first quarter to 7.9 million head.  The decline in slaughter is further highlighted by the maximum weekly kill this year of 624,000 head, being well below the average weekly kill of 642,000 in the calendar year to March 2003.  The decline in slaughter and lower carcass weights levels reduced first quarter beef production to 2.6 million tons, 8% below year ago levels.