Big cow numbers being slaughtered

Yesterday’s mention of beef cow slaughter brought to mind a conundrum with which I have grappled for the past few weeks — Why are we slaughtering so many beef cows? While feed prices are indeed higher than they once were, beef cow slaughter 15% to as much as 30% higher than one year earlier on a weekly basis and 12% higher year-to-date usually occurs in the face of an absolute economic disaster. Specifically, it usually happens when cattle prices have fallen off the face of the earth or when rains have been few and far between, leaving pastures in major cow-calf areas looking like parched pool tables. But neither are the case this year. Range and pasture conditions are remarkably good for this time of year. Only 11% of pastures nationwide were rated poor or very poor last week. Dr. Ron Plain of the University of Missouri provided a very plausible explanation — which had escaped me thus far. It centers on the structure of the beef cow-calf sector. This business is still heavily influenced by 600,000 small herds, generally owned by part-time farmer/ranchers, that still control nearly 30% of all cows. Many of these herds are, no doubt, only marginally profitable. Some probably require subsidization from off-farm income. With money tight due to the recession, “Sell the cows” may be the best way to generate some cash and/or stop the subsidies. High cow prices would trump low costs and plentiful grass and there are enough cows in small herds (roughly 10 million!) to push slaughter higher for a good while...more