July 13, 2009

                        
Exceptional drought forces US cattle herd liquidations
                             


What has been called one of the worst droughts on record for southern Texas is forcing area cattle ranchers to liquidate their herds or to take other drastic steps to cope.

 

Brian Black, assistant commissioner for communications for the Texas Department of Agriculture, said there are no totals of how many cattle have been sent out of the area or to slaughter because of the drought, but anecdotally it has been extensive. Some ranchers were selling their entire herds; some were culling their cow herds more deeply and much earlier than usual, and others are weaning calves early and selling them.

 

"Whatever it takes," Black said.

 

The National Oceanic and Atmospheric Administration's Drought Monitor shows an area of "exceptional" drought that covers nearly all of the lower third of the state. Comparisons with previous maps show the drought area growing over time.

 

David Scott, president of the Texas and Southwestern Cattle Raisers Association, said most pastures in the affected area were "in terrible shape," and even some pastures in parts of the state that are outside of the exceptional drought area were parched.

 

Scott said some producers were feeding hay to their cattle, but that hay was becoming increasingly difficult and expensive to obtain.

 

Drew Lerner, president of World Weather Inc., said prospects for change in the drought-affected area were "not good." The high pressure system dominating the area needs to be moved or dissipated.

 

A tropical storm might work, Lerner said, but nothing is on the horizon, even though the 2009 hurricane season has begun.

 

Market analysts said cattle producers began trimming their herds in March, when the drought first became harsh. More selling ensued as the drought worsened and widened, and some thought nearly all of the area's cattle had been sold already.

 

There are no up-to-date figures on how much damage has been done to the industry, but the Texas Agrilife Extension Service said more than 60 percent of the state's beef cows are located in counties categorized as being in severe to exceptional drought.

 

The January US Department of Agriculture cattle inventory report listed Texas as the No. 1 cattle state with 5.6 million cows that have calved, up 1 percent from the same time a year earlier.

 

Drought effects also last, the extension service said. It results in reduced conception rates and smaller calf crops in the following year, and the lack of feed brings lower cattle weights.

 

Range and pasture recovery can take years and result in lower stocking rates as grasslands recover, the extension service said.

 

The financial impact of drought for livestock producers was estimated to be $569 million from November 2008 until March 1, 2009, the last time the economic effects were calculated, the extension service said. Adding in losses from earlier in 2008, the livestock industry has suffered about US$829 million in losses.

 

Although newer data aren't available, the drought has only worsened since March so losses are likely to build.
                                                         

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