Drought situations in Texas and all through the U.S. proceed to take a toll on cattle numbers, with greater calf costs and fewer beef manufacturing projected for 2023, in accordance with a Texas A&M AgriLife Extension Service livestock economist.
“A lot of the nation is in some type of drought,” stated Extension Economist David Anderson, Texas A&M Division of Agricultural Economics, Bryan-School Station, on the current South Central Texas Cow-Calf Clinic in Brenham.
“Drought impacts all features of the cattle enterprise. The rationale now we have culled so many cows this yr is due to drought and the price of corn. Excessive corn costs will result in a excessive feed price setting into subsequent yr. Manufacturing prices have additionally elevated sooner than calf costs.”
Drought-related culling impacts future calf costs
Anderson’s value outlook requires tighter provides of cattle going into 2023.
“In a few years, we will probably be speaking about report calf costs once more,” he stated. “We’ll probably see over $2 a pound in 2024 for 550-weight calves just because there are fewer cattle, tighter provides.”
Anderson stated that’s being pushed by extra cull cows and heifers being slaughtered because of the drought.
“Drought is admittedly affecting the place wheat pasture is planted,” he stated. “That’s additionally affected calf costs. Proper now, there’s extra worth in heavier-weighted calves. Why? Feed is dear.”
That is ensuing within the largest slaughter since 2012, which is about 80,000 cows per week, Anderson stated. U.S. beef manufacturing is on observe to eclipse 28 billion kilos.
“Proper now, we’re producing a report quantity of beef,” he stated. “We’re getting somewhat extra beef from dairy, and almost about beef cows, we’re culling an even bigger proportion of the herd. When the January U.S. cattle stock quantity comes out, I believe we may have at the least 3% fewer cows.”
“We’ve positioned much more lightweight animals, and there are fewer complete cattle on feed than a yr in the past,” he stated.
Robust shopper demand
Client demand continues to be regular as these report quantities of beef are being produced because of compelled promoting in drought-stricken areas. That demand is protecting cattle costs excessive and serving to offset greater manufacturing prices.
Nevertheless, Anderson stated, the consequences of inflation have brought about some customers to chop again or change into choosier with grocery purchases.
“You do have some customers in a bind,” he stated. “When do folks stop shopping for as a result of the value level is just too excessive?”
Attendees all through area
The South Central Texas Cow-Calf Clinic, sponsored by AgriLife Extension, drew lots of of beef cattle producers from Austin, Brazos, Burleson, Colorado, Fayette, Grimes, Lee, Waller and Washington counties.
A scholarship raffle with $34,000 in prizes was additionally held to help youth in sponsoring counties and the cow-calf clinic youth program. Keynote speaker was Temple Grandin, Colorado State College, who mentioned grazing cattle, sheep and goats, all of that are a part of a sustainable agriculture future.
Supply: Texas A&M AgriLife Extension, AgriLife At this time
