CALGARY (Staff) – Cattle numbers are up in the United States as the national herd expands faster than predicted.
The impact of the expansion is bad news for producers as oversupply causes lower slaughter cattle prices. The winners will be consumers, said Cattlefax in its annual summary. Cattlefax is an independent information company owned by cattle producers.
It’s anticipated slaughter cattle prices in 1995 will average no higher and possibly lower than 1994, according to Cattlefax analysts.
Projections for average per capita meat supplies of red meat and poultry will be a record 98.5 kilograms (219 lbs.) in 1995, up three kg (seven lbs.) from 1994. Much of that increase will come during the last half of the year.
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On the supply side, U.S. cattle inventory for Jan. 1, 1995 is 103.3 million head with anticipated annual growth of 1.5 million.
Cattlefax anticipates this growth to continue until 1997 which will bring with it cyclically low prices.
Not only are there more cattle in the U.S. but they are producing more meat. Beef production rose to 11 billion kg (24.3 billion lbs.) in 1994, the highest level since 1986.
An increase in close trimmed boxed beef is also in evidence, said Cattlefax.
