The US Livestock Industry: The Paradox of the Depression

Exports of red meat hit records in both volume and value. However, many breeders in the US are standing on the brink of bankruptcy.

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US red meat exports hit a record both in the bloc quantity and value. Photo: southeastagnet.
US exports of red My Mom My Center Of Gravity Thanksgiving 2020 Holiday Hoodie meat hit records in both volume and value. Photo: southeastagnet.

US beef and pork exports reached record levels
According to the US Department of Agriculture and the United States Meat Export Federation (USMEF), US pork exports hit new records in both volume and Official Essential Worker Nurse T-shirt value in March and the first quarter of 2020. Beef exports also tended to be higher than the previous year in March, setting a record in the first quarter.

Dan Halstrom, President and CEO of USMEF said: “The export results are very solid, positive. or working from home creates enormous challenges, some currencies fall against the US dollar, logistics obstacles appear in Official I Speak In Tongues Blacksmith T-shirt some major markets, but demand for US red meat does not seem to affect “.

Strong demand from China, Hong Kong continues to push US pork exports to new heights, but March export ports also increased significantly to Mexico, Japan and Canada.

Export volume reached 291,459 tons, up 38% from a year ago and topped the previous Official Support Your Local Ranchers Eat Beef T-shirt record set in December 2019.

Export value increased 47% to 764.2 million USD. In the first quarter, pork exports increased 40% from a year ago to 838,118 tons, worth $ 2.23 billion (about 52%).

Breeders stand on the brink of bankruptcy
Contrary to the Raul Nutritional Facts Serving Size Calories Hoodie optimistic figures from pork and beef exports, US farmers are on the brink of bankruptcy.

A farmer checks a herd of pigs on a farm in Illinois, USA. Photo: Getty Images.
A farmer checks a Sorry I Missed Your Call I Was On The Other Line Fishing T-Shirt herd of pigs on a farm in Illinois, USA. Photo: Getty Images.

Over the past few weeks, pig slaughter capacity has continued to decline by as much as 40 percent, said Lee Schulz, an extensive livestock marketing economist at Iowa State University.

“Up to this point, we slaughter about 510,000 heads / day and are operating at full capacity.” If capacity is reduced by 40%, equivalent to slaughtering 200,000 Soy Mujer Latina Fuerte Independiente Chingona Mujer Latina T-Shirt pigs / day, equivalent to one million pigs per week (in a five-day working week), then the backlog will be huge.

Although the pig prices have rebounded slightly recently, Mr. Schulz estimates that farmers lose $ 30-60 per head of cattle. Mr. Schulz said that even when the market recovers, breeders suffer an average annual loss of between $ 20-30 per head.

Schulz said even though President Donald Trump, used the Defense Manufacturing Act to keep factories open, it would be difficult for repackaging capacity to return to pre-pandemic levels. In fact, after the executive decree of the government, some factories continue to “cover the blanket”.

Social outliers also reduce productivity.

Iowa-based feed supplier Jeff Pruess has been in business for decades but says it’s hard to predict the situation in 2020.

“It’s always been a tough job but it’s never been. as bad as it is now, ”he said.

Covid-19 is complicating matters in the cattle market. Manufacturing plants reduced capacity significantly or closed.

“In terms of beef, over the past three weeks, we have produced 300 million pounds less beef than in the same period last year,” says Oklahoma State University expert Derrell Peel.

Cattle continue to grow, but there is no place for slaughter. Pruess said it has been difficult to sell any cash cattle in the area in about five weeks.

“We are burning off our equity at a fast rate. If nothing changes, it will force us to quit our job, ”he said.

Only processing company is profitable
According to analysis by CZ CattleMarket, Choice beef price closed on May 1 at 375.45 USD / cwt (cwt – short for “Latin centum + English weight”, meaning weights; 1 cwt in the UK ≈ 50.8 kg, 1 cwt in the US ≈ 45.3 kg), an increase of 84.08 USD compared to April 24. In the same period last year, this price was 227.36 USD / cwt. On the afternoon of May 7, the price of Choice beef was 458.54 USD / cwt.

“The profit from canned beef is over 3.60 USD / cwt, but the farmer is paid less than 1 USD,” Mr. Pruess said.

An interior of a meat processing plant in the United States. Photo: North American Meat Institute.
An interior of a meat processing plant in the United States. Photo: North American Meat Institute.

“This is quite serious when farmers are worried about their livelihood. I think the breeder has too much to worry about, ”said Phil Reemtsma, a cattle rancher, feeder and veterinarian in Eastern Iowa.

On May 6, President Trump accused US meat packers of violating antitrust laws, with prices paid to farmers and breeders falling even as meat prices rose.

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