Cattle Inventory... US Herd Continues To Shrink

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From Longhorns Head to Tail Store, Barnesville, Ohio, ph 740 758 5050.

Don't get me wrong! I am not saying there will not be any steaks or grind on your local store counters next week -- I didn't say that. But, it may be from a country outside the USA. Read the article below that just came from Western Livestock Journal today, and form your own opinion.

The fact is, in the USA the cost of production of normal natural beef is getting higher. There are land acquisition prices going up, higher compliance costs from USDA, more inspections of US beef product - far more than imported meats, and gas, labor, etc. With government taxes on land tripling in the last 4 years, costs of livestock feeds, this is the problem. Ranchers like Dickinson Cattle Co LLC are going broke to the tune of 1000 per month in the USA.

Here at DCC we do dozens of things to assure a continuous supply of lean healthy beef, but the margin is thin. Each of you are very appreciated for your continued purchases of our beef products. Things are changing. Please recommend our beef to your friends. We are doing our best. DD

Cattle Inventory; herd continues to shrink

Two key cattle reports were just released, the biannual Cattle Inventory report and the monthly Cattle on Feed report. The reports were called bullish with both the Inventory report showing continued tightening of the cattle herd and the Cattle on Feed report showing decreased populations, placements, and marketing activity.

The cattle herd is down in all relevant areas for the beef sector. Total cattle and calves (beef and dairy) stood at 95 million head, down 3 percent. Recall that the July 2013 Cattle Inventory report was canceled due to the sequestration. The January 2014 report pegged the national herd at 87.73 million head.

The mid-year Cattle Inventory report came out last week confirming that the nation's cow herd is still in decline and dropped down to 29.7 million beef cows in production, a 2.5 percent decline from the prior mid-year report. The 2013 report was not completed because of USDA budget cuts. The dairy herd grew 0.7 percent.

The number most market watchers were looking for was beef replacement heifers, which were down nearly 5 percent. The report showed that the nation's total cattle numbers are down 3 percent from two years ago. So we're just having a tough time growing the nation's cow herd. WL