Source:  Tom Johnston, MEATINGPLACE.COM, 12/9/10

A sharp decline in the number of Canadian cattle threatens to exacerbate a shortage of grinding beef in the United States, according the CME Group’s Daily Livestock Report.

From Oct. 11 to Nov. 20, USDA reported imports of Canadian feeder cattle at 9,111, almost 46 percent lower than the comparable period in 2009 and 82 percent lower than in 2008 livestock analysts Steve Mayer and Len Steiner wrote in the report.

“More recently we have also seen a notable reduction in the number of Canadian slaughter cows coming into the U.S. market,” they wrote. “This is important as we see a developing shortage of grinding beef in the U.S. due to very light shipments from Australia and New Zealand.”

Imports of Canadian slaughter cows over the last six weeks were 22,634 head, a 24 percent drop from the same period a year ago.

“If current trends continue, imported beef will continue to be very tight in [the first quarter] of 2011 and slaughter cow supplies, both U.S. and Canadian, likely will be more limited,” the analysts wrote.

They attributed the reduction in imports of Canadian cattle, as well as declines in imports of Canadian feeder pigs, to a combination of a strong Canadian dollar, shrinking livestock supplies and country-of-origin labeling laws.

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