News USA
Fewer broiler cows due to high milk prices in US
The number of cattle slaughters in the United States (US) fell by half a percent in July compared to the same period last year. Despite the fact that the country is also struggling with drought, the high milk prices of the past month seem to be keeping their finger in the pie.
In the week from 13 to 19 July, 114.500 animals were slaughtered, which is 3,4% less than in the same week in 2019. A total of 4 beef and dairy cows were slaughtered in the past 455.700 weeks, this includes a short holiday week. The number of slaughters is also 0,5% lower than in the previous year. Given the drought, the picture doesn't seem quite right. In general, slaughter figures go up when a country is struggling with drought. In the US, the high milk prices seem to be stopping this.
High milk prices
Of the 455.700 cows slaughtered in the past 4 weeks, the majority were beef cattle. This share increased by 20.300 animals (+9%) compared to the same period last year. The share of dairy cows, on the other hand, has fallen sharply by 22.400 animals (-10%) compared to the same weeks in 2019. This all seems to have to do with the milk prices, which continued to increase enormously in the past month.
The American class III milk price went upside down in June. The price converted to about €41 per 100 kilos, 73% higher than the price in May. There is talk of a record increase, driven by the sharply rising cheese price in Chicago. The other milk prices (class 2 and 4) rose considerably less quickly. It is therefore not surprising that the number of slaughtered dairy cows has fallen, nor that production is increasing again.
beef prices
Due to the corona outbreak, several meat processors had to close their doors, which affected, among other things, beef prices. These dropped significantly, which meant that the farmer got 25% less for his cows. Slaughter capacity fell by more than 50% at one point, resulting in a 'surplus' of cattle for slaughter. Sending cows to slaughter has not paid off so much for farmers in recent months.
The price is now for August 2020 at $103,10 per 100 pounds (about 45,4 kilos), $2,00 higher than in the previous month. The price is expected to rise to $111,55 per 100 pounds by the end of this year. $2,27 is paid per kilo of beef.
(Prices are in US Dollars ($))
Jorine Cosse
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