March 17, 2014
US cow numbers down to lowest due to drought
The US is experiencing the lowest beef cow inventory since 1952 due to various droughts that have happened across the country which started in the Southeast and Southwest and affected other areas and caused California''s slaughterhouse to close and lay off 1,300 people.
This is according to Neil Hannon, whose family has farmed and raised cattle in Morgan Township in Porter County since the Civil War, cattle are being brought into the US from Brazil through Mexico in such numbers that they are controlling the beef market. It''s all because America has a cow shortage.
"Brazil and China are some of the biggest influences on the market," he said. "A lot of the lower end beef that will be used in fast food restaurants is being controlled all the way from conception to consumption by Brazil, and it''s influencing the demands."
The low beef production in the US plus the loss of 100,000 cows last fall in an early snowstorm means restaurants and supermarkets are locking onto the lower prices for poultry and pork. Restaurants that don''t want to pay high prices for beef for low-priced meals are using the lower grade Brazilian beef, Hannon said.
He projected it will take the US industry about five years to replenish the stock, barring other disasters, but he expects that despite the record high prices, the demand for high quality beef will be strong, especially when some countries pay US$100 an ounce for top quality
beef.Since feed is the largest expense of raising beef, and the price of hay and grain have been high recently, the less a cow eats to reach the desired size and weight, the better the profit for the farmer.
Bob Wichlinski, whose family raises 4-H show cattle, said this year''s tough winter is increasing costs for things like keeping water and food thawed that hasn''t been done for several years.
The Hannons also work in the field of embryo transfers to speed the production of cattle with the most desirable genetic traits. Young cows with the desirable traits are induced to produce a large number of eggs that are implanted in other young cows.
"We''ve been trying to pass regulations on labelling the country of origin of meat so consumers know where it comes from," he said. "Our concern is for all the beef coming from Brazil. The Brazilians own more slaughterhouses than any of the corporations in the US, and consumers will buy the lower-dollar beef.
He said a couple of cases were discovered recently in which a form of plastic was used as feed that expands to add weight to the cows. China and Russia are expanding their beef production at a rapid pace to feed their people, and Russia recently invested millions to buy cattle from the Dakotas to raise in the Ukraine, which has a similar climate.