Rising feedlot weights stall beef output despite herd decline
By Farms.com
The US is experiencing a decline in beef production, a trend moderated by an increase in the weight of cattle, according to recent findings from CoBank.
Over recent months, feeder cattle have remained in feedlots for extended periods, leading to heavier and larger carcasses. This weight gain has helped mitigate the impact of a nationwide reduction in herd numbers, stabilizing the market temporarily.
Brian Earnest from CoBank reports that despite these challenging conditions, cattle producers are starting to see a turnaround in profits, spurred by easing feed costs and better weather.
The rise in cattle prices resulting from longer feedlot stays has discouraged meatpackers from accelerating slaughter rates, with losses mounting for packers while feeder operators enjoy robust profits.
These developments are affecting beef prices, especially in products like ground beef, where varying fat-to-lean ratios are critical.
As cattle remain heavier and slaughter numbers stay low, the gap in prices between different types of beef cuts is expected to widen, potentially leading to costlier beef products for consumers.
With an eye on future trends, the USDA has revised its beef production outlook for 2025 upwards, anticipating that current trends in carcass weights will extend into the early months of the coming years.
This adjustment underscores the ongoing influence of cattle weights on production metrics and market expectations in the beef industry.