Beef exports continue to face headwinds as beef production decreases and beef prices increase in the U.S. market. Beef imports are dominated by imports of lean processing beef to supplement supplies of nonfed beef.
Market cow prices have increased significantly as demand has grown for product in the nonfed beef market, and the supply is tightening faster than that of fed beef.
A primary reason feedlot inventories have remained high is due to the continued placement and feeding of heifers. At some point, increased heifer retention will lead to more pronounced decreases in feedlot inventories.
Mexico has become one of the major beef import sources for the U.S. as beef trade evolved from simply supplementing deficit beef production in Mexico to bilateral, product specific trade between the two countries.
Lean beef trimmings, a key component of ground beef production, have rallied significantly, with the price of 90% lean trimmings quoted over $317 per cwt. the first week of March, an all-time record dating back to 1978.
The set of products included in total by-product values is quite varied and includes edible offals, inedible offals, meat. bone and blood meal, edible and inedible tallow, hides, and pharmaceutical products.
The feedlot inventory as a percentage of the total inventory has increased over time, and the declining number of feeder cattle means there are not sufficient feeder cattle to maintain feedlot inventories this year.
Statistically, impulse heifer breeding is about 80 percent more variable than planned heifer breeding. Therefore, impulse heifer breeding plays an important role in the dynamics of cattle cycles.
January may seem early to start planning grazing for the coming growing season but the ability to minimize non-grazing feed costs will depend on comprehensive grazing plans and management for the entire year.
