This 12 months was difficult for the livestock and poultry industries. Excessive enter costs, together with agricultural chemical substances, farm labor, feed, and gasoline, raised the price of manufacturing. Extreme drought led to accelerated herd liquidation and poor hay manufacturing for cattle producers. Logistical and transportation points proceed to stress agricultural provide chains. Extremely pathogenic avian flu has negatively impacted poultry and egg manufacturing. Regardless of these challenges, U.S. purple meat and poultry manufacturing is projected to succeed in a document 107.5 billion kilos in 2022 (Dec WASDE).
The Livestock Advertising Data Middle (LMIC) estimates 2022 money prices for cow-calf producers at $963/cow or 13% increased 12 months over 12 months. The biggest expenditure for cattle producers is harvested forage and feed. LMIC’s 2022/2023 season-average hay value is $160/ton, a rise of 9% in comparison with the 2021/2022 season-average value. Poor rising situations this summer time and costly inputs contribute to these record-high hay costs. LMIC’s 2022/2023 common corn value is $7.00/bu, a rise of $1/bu in comparison with their 2021/2022 corn value. Feed prices are likely to observe the corn market, and we won’t see cheaper corn till a minimum of the 2023/2024 advertising and marketing 12 months.
Main cattle manufacturing areas have handled widespread drought since mid-2020. The Southeast has principally averted vital drought impacts. Nevertheless, situations this summer time deteriorated quickly. For instance, in late June, solely 15% of Arkansas pastures have been rated as poor or very poor. By late July, USDA estimated that 75% of Arkansas pasture and vary was poor or very poor. The speedy decline and pasture situations introduced massive numbers of cows to market within the Southern Plains and Southeast.
Federally inspected beef cow slaughter will end 12% increased 12 months over 12 months. By way of 48 weeks, nationwide beef cow slaughter totals 3.58 million head, and is the best since 1996. Regionally, beef cow slaughter in Area 6 (AR, LA, NM, OK, & TX) totals 1.02 million head and represents 28% of the nationwide complete. These massive slaughter totals will considerably have an effect on cattle stock numbers that USDA will launch in January. We are going to see additional tightening of cattle provides and growing costs in 2023.
Cattle markets improved in 2022, with costs at their highest since 2014-2015. Within the Southern Plains (SP), fed steer costs averaged $141/cwt, a rise of $20/cwt in comparison with final 12 months. SP costs for 500-600 pound steers averaged $191/cwt or 13% increased 12 months over 12 months. Regardless of massive volumes of cull cows at markets, SP costs for 85-90% lean slaughter cows averaged $63/cwt, a rise of 17%.
This would be the final CMN article this 12 months. We’ve had enjoyable writing these articles and stay up for writing extra subsequent 12 months. Thanks to everybody who reads and subscribes to CMN. Merry Christmas and Completely satisfied New 12 months!
