Prepared and written by Jeff Swenson, DATCP Livestock and Meat Specialist. The Market Update draws information from several sources, including trade publications, radio broadcasts, agricultural news services, individuals involved in the industry as well as USDA NASS and AMS reports.
The USDA latest monthly Livestock Slaughter report showed April beef production 11% below the same month last year. The average live weight of cattle harvested was down 19 pounds and the number of head harvested was 9.6% lower. Harvest was lower for all classes of cattle with the exception of fed heifers and dairy cows.
Beef cow harvest is running below year ago levels except in regions still impacted by drought. Beef production year-to-date is 4.9% lower than last year. Last week’s estimate of 625,000 head was 17,000 below the previous week and 16,000 below a year ago.
Margins are a touchy topic depending on where you find yourself in the supply chain. Retail beef prices, while about 25% higher than 2019, have been relatively steady for over a year. Choice box beef prices are 14% higher than a year ago, while fed cattle prices are 25% higher. Feedlot operators have maintained profits even with higher feed costs, but increasing feeder cattle prices will tighten margins in the months ahead. The Choice Boxed Beef Cutout averaged $301.36 last week for a gain of $1.56.
Pork production and prices continue to fall
Pork production in April was down 4% from the previous year. Hog harvest totaled 9.77 million head, down 3% from April 2022. The average live weight was down 2 pounds from the previous year, at 291 pounds. Hog harvest in Wisconsin during April was down 16% compared to last year. Estimated harvest last week was 2.371 million hogs, 26,000 less than the previous week and 25,000 more than a year ago.
Cash hogs were unchanged last week with the pork cutout value decreasing $1.35 to average $82.51. Even with a decrease in beef production, large increases in chicken production have put total meat supplies at a 10-year high. This may be another factor for sluggish domestic pork demand.
Lamb harvest totals down
April lamb and mutton production was 11% lower when compared to 2022. Harvest totals were down 6% with live weights dropping by six pounds. Last week’s estimate of 33,000 was 2,000 head below a year ago and 1,000 head higher than the same week last year.
The cut out value finished lower last Friday at $520.35. Cash prices were called mostly lower last week, although some Eastern U.S. markets reported higher prices.
Nominations sought for HOF
The University of Wisconsin–Madison Department of Animal & Dairy Sciences and Wisconsin Livestock and Meat Council are seeking nominations for the Wisconsin Meat Industry Hall of Fame’s 2023 class of inductees. Nominations for this honor, which is designed to recognize Wisconsin meat industry leaders and innovators, will be accepted through June 16.
Source: wisfarmer.com
Photo Credit: GettyImages-ImagineGolf
Categories: Wisconsin, Livestock, Beef Cattle