Drought forces North American cattle ranchers to sell off their future

Published Sep 3, 2021

Tridge summary

Record-setting heat and drought conditions across western North America, including Manitoba, California, and Mexico, have led to significant losses in cattle breeding stock, with some ranchers being forced to sell a third of their herds. This situation is expected to tighten the North American beef supply and increase consumer prices. The drought has also impacted other agricultural products such as wheat, cherries, and honey production, and forced the closure of a major hydroelectric plant in California. Despite the challenges, some ranchers refuse to link the drought to climate change. Meanwhile, the cost of feed alternatives is at a record high, and herd reduction is projected to last years, leading to a decline in operating margins for major meat companies like Tyson Foods. Consumers are expected to bear the brunt of increased beef prices.

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

Original content

WINNIPEG, Manitoba/CHICAGO, Sept 3 (Reuters) - When Canadian rancher Dianne Riding strides across her brown pasture, sidestepping cracks and popping grasshoppers, she has less company than usual. Record-setting heat and sparse rain left Riding with too little grass or hay to feed her cattle near Lake Francis, Manitoba. She sold 51 head at auction in July, about 40 percent of her herd. The sales included 20 heifers, young cows that have not given birth, that were potential breeding stock. "That's your future. As my herd goes down, so does my income," Riding said. "It's gut-wrenching." Such liquidations of breeding stock are expected to limit cattle production in the coming years, tightening North America's beef supply and driving up consumer prices, according to two dozen ranchers and cattle experts. The drought spanning much of western North America - from western Canada to California and Mexico - has cooked pastures and hay crops that fatten cattle. The ranchers' plight is one ...

Source: The Western Producer