Food Business News - August 26, 2014 - (Page 20)

Market Insight Beef's troubles Slow herd rebuilding to prolong tight supplies he U.S. Department of Agriculture's mid-year cattle inventory report showed slower-than-expected herd rebuilding, despite sharply lower grain prices and improved pastures in much of the country. "The NASS Cattle report indicated little or no increase in replacement heifer inventories for either beef or dairy herds over July 1, 2012, inventories, when the last July 1 estimates were released," the U.S.D.A. said in its Aug. 18 Livestock, Dairy and Poultry Outlook. "This was not expected, and it indicates that any herd rebuilding is pushed into the future." The inventory report was not issued in July 2013 due to U.S.D.A. budget constraints. That implies beef cow numbers will stay low longer, beef supplies will remain tight and beef prices will continue at or near record highs, although delayed herd rebuilding may keep nearby beef supplies a bit higher than would be expected if heifers were held back from feedlots. There were some mixed signals. "At the same time, the proportion of heifers on feed is the lowest since July 2006, during T 20 FOODBUSINESS NEWS ® the last upturn in total cow inventories," the U.S.D.A. said. The department noted that Jan. 1, 2014, beef replacement heifer inventory was up about 4% from 2012 and up about 2% from 2013, but all other heifer categories were lower from feedlots during June, down 6% from June 2013, an indication of continued tight slaughter cattle supplies, although kill numbers still will show some seasonal increase in the fall. The tightness in cattle numbers has been offset somewhat Per capita red meat and poultry consumption per retail lb Beef 16.1 Turkey 16.0 Broilers 16.0 Pork 15.7 82.9 80.4 81.9 83.4 84.8 45.7 45.9 46.8 45.6 46.0 57.3 57.4 56.3 54.2 53.4 2011 2012 2013 *2014 Source: U.S. Department of Agriculture both 2012 and 2013. The total U.S. cattle inventory on Jan. 1, 2014, was the lowest in more than 60 years. In its latest Cattle on Feed report, the U.S.D.A. said there were 10.1 million cattle in feedlots on July 1, down 2% from a year earlier, with heifers accounting for 3.6 million head, down 5%. The U.S.D.A. said 1.46 million cattle were placed in 15.9 *2015 *2014-15 forecast by heavier slaughter weights, the result of sharply lower prices for feed, mainly corn, which means beef production is not reduced as much as may be expected. The same is occurring in pork and poultry production. "The forecast for total meat production in 2014 is raised from last month," the U.S.D.A. said in its August World Agricultural Supply and Demand Estimates report. "Production is raised for beef, pork and broilers as lower feed prices encourage producers to raise animals to heavier weights. For 2015, lower feed costs are expected to lead to higher cattle, hog and broiler weights, but in the case of beef, reduced feedlot numbers are expected to lead to lower slaughter, more than offsetting any gains from carcass weights." Hog and poultry growers may adjust production much more rapidly than can cattle ranchers, thus taking advantage of changes in feed costs much sooner even if profit margins are favorable for all. Cattle have gestation cycles of nine months and typically have only one calf, compared to hogs that can have litters of about 10 pigs in a little over three months and chickens that lay an egg a day. It takes years to increase the cattle herd, months to grow more hogs and only weeks for chickens. "To the extent that heifer retention occurs, it will further reduce feeder cattle supplies for placement on feed," the U.S.D.A. said. "If heifers are not bred until next summer, it will be spring August 26, 2014

Table of Contents for the Digital Edition of Food Business News - August 26, 2014

Food Business News - August 26, 2014
Wal-Mart in effort to be even more price competitive
Coca-Cola Co., Monster Beverage enter energy drink deal
Beverage Business News - Blending innovation in the juice segment
Table of Contents
Web Contents
Editorial - Social progress tied to diet
Wal-Mart in effort to be even more price competitive
Nestle to implement animal welfare standards
TreeHouse ahead on Keurig 2.0 product
Kraft, McDonald’s going forward with McCafé partnership
Gary Rodkin to retire from ConAgra Foods
Pinnacle Foods moving past Hillshire ‘distraction’
Displays, distribution propel Hostess cakes, rival says
Popcorn has global possibilities
TreeHouse Foods eyeing private label organic, natural category
Big Lots ramps up food offerings
Market Insight - Beef's simmering troubles
Washington - Transportation proposal under scrutiny
Ingredient Innovations - Rallying around omega-3
Oil blend with omega-3s offers stability
Health and Wellness - Better living through nutrition
New Food Products
Ingredient Market Trends - Canadian crop forecasts at ‘more normal levels’
Ingredient Markets
Supplier Innovations and News
Classifieds
Marketplace
Ad Index
Food Business in the News

Food Business News - August 26, 2014

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