Source:  Rita Jane Gabbett, MEATINGPLACE, 1/22/14

The extreme cold weather across much of the cattle areas of the continental United States disrupted meat processing and livestock movements to slaughter and has had a negative impact on cattle body maintenance and gains, according to USDA’s latest Livestock, Dairy and Poultry Outlook report.

Along with prices for other categories of cattle, cow prices have recovered dramatically during the last few weeks However, with livestock slaughter more erratic than usual for the end-of-year holiday season because of winter storm disruptions and the fact that both Christmas and the New Year holidays came during the middle of the week, disrupting slaughter schedules and markets, it is difficult to determine whether an upward trend is really developing.

At the same time, cow prices are projected higher in 2014 because of anticipated declines in cow slaughter as a result of expected efforts to rebuild cow herd inventories.

Despite the likelihood of almost a 3 percent year-over-year decline in total 2013 commercial cow slaughter, the rate of total cow slaughter (ratio of slaughter to Jan. 1 total cow inventory) appears to have continued throughout 2013, matching the high rates of 2010, 2011 and 2012.

The high cow slaughter rates led to declines in cow inventories and the expectation of continuing declines in Jan. 1, 2014, cow inventory.

The dynamics are different for beef and dairy cows. Consistent with total cow slaughter, commercial beef cow slaughter is on track for 2013 to be the 6th consecutive year for commercial beef cow slaughter to exceed 10 percent of Jan. 1 beef cow inventories.

Dairy cow slaughter is on track for the second highest rate of slaughter relative to dairy cow inventories since 1980.

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