U.S. beef prices are rising and slaughter remains at record highs

As discussed in Meat & Livestock Australia's (MLA) recent January livestock report, the dynamics of the US cattle population is a significant driver of cattle prices at Australian auctions. As a competitor to Australian beef, the US market subsequently influences the Australian market. In the last few years, the United States has seen a decline in livestock. In January, the US Department of Agriculture (USDA) published data showing that the herd decreased by 3% to 89.3 million head. At the same time, US slaughter rates are likely to decline later this year, and the end of the drought in the southern and southwestern regions of the US is likely to lead to an aggressive recovery of herds, which will limit supply and increase demand (and prices) for Australian cattle and beef. In the first five weeks of 2023, US slaughter was 3.16 million head of cattle (unchanged from last year). Slaughter of cows and bulls has decreased slightly, but the female slaughter rate for the current year ...