May 14, 2004

Hawaii Beef Exports Decline, Local Consumption Rises

Hawaii cattle marketings are down, but local beef production is up. Hawaii cattle producers are finding a greater market here, but are sending fewer animals to the mainland.

Cattle marketings reached 2,800 in March, up a little from February, but down sharply from 3,900 head marketed in the same month last year. Out-of-state shipments accounted for the entire decline as exports decreased 39 percent from a year ago to 1,900 head.

Cumulative marketings for the first quarter of 2004 were 7,400 head, a decrease of 32 percent from the same period a year earlier. Year-to-date exports for 2004 were 4,800 head, a decrease of 42 percent from the same 3-month period in 2003.

Commercial beef production for local slaughter during March totaled 551,000 pounds, up from 485,000 pounds a year earlier. Commercial kill totaled 900 head, 100 more than a year ago. Average live weight per head, at 1,101 pounds, was 4 percent heavier than a year ago. Local-grown beef is becoming a delicacy sought out by consumers, and earlier this week Times Super Market began carrying North Shore beef from pasture-fed cattle.

U.S. national beef production in the same period was 2.11 billion pounds, 3 percent more than last year. Cattle slaughter was up 4 percent but average live weight was down 17 pounds from the previous year, at 1,217 pounds. For the whole first quarter, national beef production fell about 7 percent and slaughter more than 5 percent.

Poor feeding conditions have been holding down slaughter weights. While beef cow slaughter declines are positive for stabilizing cattle inventories, actual herd and production expansion is still several years away. Cow slaughter is expected to remain low, with the beef sector showing the first feeble steps toward expansion with the lowest beef cow slaughter in several decades.

If industry herd expansion has a strong response to higher prices, the beef supplies are going to be tighter through 2006. Cattlemen are likely to remain wary of expansion until forage improves. While the industry is apparently ending the liquidation phase of this much-extended cattle cycle, the expansion phase has yet to materialize.