COW  SLAUGHTER

Last year, in response to a number of factors (i.e. drought and rising costs) the U.S. beef cattle industry reduced the breeding herd.  The dairy industry which has been facing rising costs and low milk prices since late last year, has begun contracting this year.  Thus, total cow slaughter so far this year has averaged above last year, due to a larger number of dairy cows in the slaughter mix.  However, smaller numbers of beef cows in the mix have helped to offset the annual increase in dairy cow slaughter.

As of mid-June (latest actual slaughter data), Federally Inspected (FI) total cow slaughter on a weekly average basis was about 3 percent higher than last year and nearly 16 percent larger than the 2003-2007 average.  FI beef cow slaughter for this period was down on average about 6 percent from 2008, but still around 13 percent larger when compared to the prior five-year average.  At the same time, dairy cow slaughter through mid-June was 15 percent above a year ago and nearly 20 percent larger than the 2003-2007 average.  Of note, dairy cows have accounted for nearly half of the total cow slaughter mix this year, which is up from about 40 percent for the same timeframe last year.

Slaughter cow imports from Canada factor into the total U.S. cow slaughter mix as well.  So far this year (latest weekly trade is for weekending June 13^th), slaughter cow imports have been slightly above last year, about 2 percent or 1100 head.  Most of the year-to-year increase was in the first quarter of this year as U.S. weekly cow imports have been well below a year ago since the start of April.  The recent decline in imports has also helped to counteract the increased number of domestic dairy cows in the mix this year.  However, U.S. slaughter cow imports could increase this summer, as drought in western Canada has been severe.