3-year drought would push US livestock inventory to a low not seen in 72 years

Published 2023년 1월 16일

Tridge summary

The United States is projected to have its smallest cattle herd since 1951-52, due to three consecutive droughts caused by La Niña, leading to a significant liquidation of the herd. This is expected to result in a reduction in meat production by 400,000 to 500,000 tons in 2023. Despite high beef prices, demand remains strong. However, there are concerns about a tipping point as inflation and interest rates affect consumer income. Meanwhile, beef exports in 2022 increased by 4% to about 1.5 million tons, with South Korea, Japan, and China being the top importers. Other beef-exporting countries like Australia, Brazil, and Argentina are also facing supply challenges.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

After three consecutive droughts caused by La Niña, the United States would have the lowest herd since 1951-52, at about 87.7 million cattle. Consequently, after a 2022 with record production, the amount of tons of meat obtained in 2023 would fall between 400 and 500 thousand tons. At the annual meeting of the American Farm Board Federation (AFBF for its acronym in English), economist Bernt Nelson, quoted by Michigan Farm News, assured that the shortage of pasture and feed resulted in a significant liquidation of the herd in the last three years. “We saw massive numbers of heifers coming into the market; that's been the story all year. When we take the driving force, breeding cattle, out of our inventory, that will lead to a smaller cattle herd for years to come,” he said. All eyes are on the US Department of Agriculture (USDA) report due out on January 31. Many analysts expect a 4-6% drop in inventory. (Read: Inventory of cattle cattle in the United States would drop in 2023) ...

Source: MXContexto