Compared to last month, the cattle on feed report for October showed a 2% decline. According to the report, Texas, Kansas and Nebraska lead the nation with total fed cattle numbers. The report also indicates an increase in cattle placed weighing less than 800 pounds.
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Texas, Kansas and Nebraska lead the nation in total fed cattle numbers
Compared to other states, Nebraska, Kansas and Texas lead the pack when it comes to total fed cattle numbers. These three states account for about two-thirds of the total on-feed inventory. The state with the most is Texas, followed by Kansas and then Nebraska.
This is due in part to the fact that these three states have the most beef cows in the U.S., which is a pretty big deal considering that cattle are valued at around $2,000 a head. However, it is not all about the cows. It is also about how they are raised, fed and then killed. In other words, the beef industry is very much dependent on other industries such as agriculture, food processing and transportation.
Canadian cattle on feed count increased 17% year-over-year
During the month of October, Canadian cattle on feed numbers grew 17% over the same month last year. The count was particularly robust after the Memorial Day weekend. This bodes well for the Canadian feed industry, which has recently recovered from the aftermath of the COVID-19. In other words, a larger percentage of cattle weighing in at the packing plants is an asset to be proud of.
The Livestock Marketing Information Center has been busy churning out the numbers in the form of demand indexes. They are not exactly precise, but the count is on the rise. The Livestock Marketing Information Center has a vested interest in providing a steady stream of relevant information.
U.S. economy and export markets will be challenged by tariffs and retaliation
Several rounds of tariffs have been imposed by the Trump administration on thousands of goods and services. These tariffs will have a clear impact on the economy and export markets.
The total cost to consumers is estimated to be around $51 billion each year. Tariffs will reduce real income, reduce employment, and increase the cost of goods and services. Tariffs can also affect the after-tax value of capital income and labor income. In effect, they will reduce long-run GDP by 0.22 percent.
Tariffs also increase the value of the dollar, which makes it harder for exporters to sell their goods and services on the global market. This also reduces output and economic growth.
Placements and marketings are important components of the COVID-19 report
Traditionally, the manufacturer created and marketed the product while retailers promoted assortments and promotions. With the advent of sophisticated digital technologies, manufacturers and retailers have begun to blur the boundaries between the two sides of the business.
Using user-generated content and social media to interact with consumers is the new norm. This new model also allows retailers to nudge consumers into the purchase funnel. Retailers have also stepped up their efforts to promote special offers, brand-name products, and special events.
As consumers have become the true producers of value, manufacturers have had to re-invent themselves. They are taking the lead on the new product development process, including product customization and innovation. This can improve the product’s performance and increase consumer satisfaction. It has also been found that consumer-centric product customization can increase consumers’ willingness to pay.
2% decrease for cattle on feed by Nov. 1
Despite a 2% drop in cattle on feed by November 1, the USDA’s Cattle on Feed report showed that the number of cattle and calves in feedlots increased in October. This report is published every month, and provides estimates of cattle and calves on feed for slaughter.
The report also showed that feedlots marketed an estimated 1.80 million head of fed cattle in October. This is a 1% increase over last year’s total. This reflects a thinner show list that will help drive throughput higher.
However, despite this positive development, there is a risk that these numbers could get tighter over the next few months. In the fall, cattle are typically placed in feedlots, and will be under 800 pounds by the time spring comes around.
Increase in cattle placed weighing less than 800 pounds
Compared to the previous month, net placements of cattle on feed rose by 2%. The increase was driven by a larger proportion of heifers on feed. A smaller proportion of the supply was comprised of cattle weighing over 800 pounds. This was largely due to drought-related pressures.
The most popular category of cattle on feed is heifers. This category is led by Texas, where the largest number of cattle were placed. Missouri and Montana saw modest decreases. Other states got mixed results.
The most common breeds are sires, but the largest proportion of cattle on feed are feeders. Compared to a year ago, the amount of feeders increased by more than 10 percent. The total number of feeders placed on feed amounted to more than 11.4 million head.
