More in Industry At A Glance

If Food Safety Inspection Service inspectors are put on furlough as part of the March 1 sequester, USDA’s Feb. 22 Cold Storage report indicates the complex has approximately one week’s worth of beef and beef products to meet typical business requirements....More

U.S. beef cow numbers have shrunk by an average of 350,000 head/year for the past 17 years. Despite such a huge loss of breeding animals, the industry has proven able to compensate for fewer numbers with better genetics, improved management and better technology. But the industry is flirting with a liquidation mentality that could become self-perpetuating, which would prove very detrimental to the industry in the long term....More

Though the U.S. cattle inventory will likely show contraction again this year – the 17th consecutive year of fewer numbers – an increase in animal productivity has softened the blow. That continually shrinking inventory, however, poses severe challenges on the U.S. industry’s infrastructure and service industries....More

Market trends depict a growing proportion of branded beef sales over time. Another trend in the wholesale market is the increasing proportion of out-front sales of beef. The result is this segment – much like the live-cattle market – is utilizing the spot market less and less....More

Ractopamine is a feed additive that improves the feed efficiency, growth rate and lean carcass percentage of live hogs and cattle, and it is approved by FDA as safe for use. So Russia’s recent announcement that it will require all imported meat products to be certified free of ractopamine has caused some consternation to U.S. industries that increasingly depend on foreign demand for U.S. pork and beef products....More

Final demand is critically important to any industry. The financial crisis and ensuing recession had a sharp outcome on consumer behavior, especially in the food-retailing sector....More

Cow prices are driven by a number of factors, but there’s typically a strong seasonal influence on the market with prices traditionally peaking in late spring. Clearly, the ideal situation is to market all cows at peak prices each year, but the strategy includes a trade-off. That is maintaining cows through the winter....More

The Prime/Select spread, which has seen a dramatic uptick in the past several years, has a 52-week moving average surpassing $50/cwt.! This is an encouraging signal from a final-demand perspective; it means consumers seem willing to pay for high-quality, program-backed beef products....More

Captive supplies have been an enduring and particularly contentious issue for the beef industry over the years. However, despite the debate, it’s clear that packers and feeders are decreasingly utilizing the spot market....More

Packer gross margins are defined by revenue derived from meat, hide and offal sales, less the cost of a fed steer or heifer. The current tight supply of cattle has made competition especially fierce during the past 12 months. As a result, packers have experienced a prolonged period in which beef processing gross margins have been particularly challenging. In fact, the 52-week moving average crossed below $100 in August, and the sector remains under pressure....More

The shifting geography of cattle feeding is a trend that’s been in place for quite a long time. However, it really began to change following the emergence of the ethanol industry, after which cattle feeding followed the ethanol plants back to the Corn Belt....More

July’s cattle-on-feed report represented a slight rise in the feedlot heifer population vs. last year. The overall trend during the past several years has been relatively flat – hovering around 37%-38%....More