Category: Livestock Marketing

  • A Little More Insight on Meat Trade 

    A Little More Insight on Meat Trade 

    Over the last 2 months, the rapidly changing tariff environment has had livestock market analysts anxiously awaiting USDA trade data releases.  The latest monthly trade data from the USDA was published on June 6th.  It included meat and livestock exports and imports for April 2025.
     
    Trade is interesting because of all the moving parts.  Tariffs are only a part of the story.  Domestic production impacts prices, creating incentives to import or export.  For example, record high beef prices creates an incentive to import more beef and export less.  Relative prices between countries, exchange rates, shipping costs and availability, and other countries’ actions may impact trade, overwhelming the effect of a new tariff.  
     
    U.S. companies exported 237 million pounds of beef in April, an 18.5 million pound decline from March and 22.3 million pounds less than April 2024.  Exports to China declined the most, down 27.7 million pounds, or 34 percent, compared to March.  The impact of China on total U.S. beef exports was partially offset by larger exports to Japan, South Korea, and Hong Kong.  It’s not unusual for beef exports to decline from March to April.  On the pork side, exports declined 58 million pounds, or 9 percent, from March, and 73 million pounds less than April 2024.  Shipments to most markets declined, led by Canada, Mexico, and China.  The decline in pork exports to Canada accounted for 41 percent of the total export reduction from March.
     
    Beef imports declined in April compared to March, down 27 million pounds.  As with exports, it’s normal for imports to decline from March to April.  Fewer imports came from Canada, Mexico, New Zealand, and Uruguay.  Imports jumped 17.8 million pounds, 17 percent, from Brazil.  The increase in imports from Brazil bucked the usual trend of declining imports after January.  
     
    Lamb imports have been a very contentious issue for the industry for many years.  The imposition of tariffs on Australian and New Zealand imports, which make up 99 percent of U.S. lamb imports, has had industry backers and detractors.  Imports in April were 5 percent larger than those in March and 10 percent larger than those in April 2024.  Some other factors are clearly at work in the lamb market, and it may take more time to see any impacts of tariffs that were imposed in early April.
     
    The April trade data gives us an early glimpse at the impacts of tariffs on meat trade.  The May data may give us a better look at impacts because that will better account for shipping time lags for some markets.  Clearly, the very large tariffs between the U.S. and China did impact that transaction.  Other markets with smaller tariff levels may not reveal large changes yet.


    Anderson, David. “A Little More Insight on Meat Trade.Southern Ag Today 5(24.2). June 10, 2025. Permalink

  • Tallow and Lard

    Tallow and Lard

    It’s often said that everything is sold from cattle and hogs except the moo and oink.  These products include all the variety meats, hides, tendons, and anything else.  One category of these products that has been increasing in value is tallow, grease, and lard.  These can be edible or inedible.  Several factors have been important in increasing their values.  One is the renewable fuel market.  The increased demand for used cooking oil and animal fats to meet renewable standards has boosted prices.  On the edible side, recent trends in deep-frying foods and French fries in beef tallow have further boosted demand.  And it’s hard to make good biscuits or tamales without lard.

    USDA reports weekly prices for several types of these fats.  As you might expect for these types of products, prices are often not reported every week.  But what is reported can give us some insight into added values to cattle and hogs.

    Edible tallow, delivered to Chicago, was $58 per cwt for the week ending May 2nd compared to $49 per cwt the same week in 2024.  For the year-to-date, edible tallow has averaged $54.65 per cwt versus $51.82 per cwt last year.  While prices are generally higher than last year, tallow prices hit $92 per cwt in September of 2022.  A decade ago, edible tallow was about $30 per cwt.

    Choice, inedible white grease hit its high price for the year, $51 per cwt, in April.  It was $39 per cwt in April 2024.  Bleachable, inedible tallows have seen similar price increases compared to last year.  A decade ago, these products were about $26 per cwt.  

    While growing demand has certainly been a factor in rising prices, the supply side is also important.  Fed cattle weights have been increasing to record highs.  Increasing weights are mitigating tallow supply declines due to fewer head produced.  Heavier fed cattle weights have led to more yield grade 4s and 5s, resulting in more fat on the market.  While cattle are discounted in price if they fall into yield grade 4 and 5, the rising value of tallow helps to offset the lost value. Tallow, grease, and lard are a small portion of the total value of a carcass, but every little bit adds value to cattle and hogs.  


    Anderson, David. “Tallow and Lard.” Southern Ag Today 5(23.2). June 3, 2025. Permalink

  • From Grass to Gains: Why Stockpiling Bahiagrass Pays Off

    From Grass to Gains: Why Stockpiling Bahiagrass Pays Off

    In the southeastern U.S., cattle producers are continually seeking sustainable grazing strategies that will support their cattle herd for a greater number of days and into the winter months.  One method producers use to extend the grazing season is forage stockpiling. This practice involves suspending the use of a grazed pasture for a period to allow the accumulation of the forage in the fall until a killing frost. Stockpiling ensures that there is enough mature pasture available to support the cattle herd, ideally for a month or more, bridging the gap until cool-season forages are grazable and reducing the reliance on supplemental feeds and hay.  

    We conducted a two-year on-farm demonstration evaluating the nutritive value and yield of stockpiled bahiagrass across two Alabama locations and stockpiling seasons. In 2023, forage yield in Montgomery County differed significantly from that in St. Clair County (Table 1). The St. Clair producer applied 60 lb N/ac of nitrogen at the onset of stockpiling and stocked fewer cattle (3 head/ac), which likely contributed to greater forage yield and plant height. While no significant differences were observed between locations for neutral detergent fiber (NDF), acid detergent fiber (ADF), acid detergent lignin (ADL), or total digestible nutrients (TDN); crude protein (CP) was significantly higher in Montgomery (Table 2). This may be attributed to the Montgomery forage remaining in a more vegetative state, whereas bahiagrass at the St. Clair site was more mature and undergrazed.

    In 2024, both locations experienced warmer fall temperatures and reduced rainfall during the early stockpiling period. Unlike the previous year, the St. Clair site did not receive fertilizer, and as a result, forage yield was not significantly different between the two locations (Table 1). NDF was significantly higher in Montgomery, indicating reduced dry matter intake potential due to elevated fiber content. ADL levels were also higher in Montgomery, suggesting an increased proportion of indigestible material that can negatively impact forage digestibility. Additionally, TDN were significantly higher in St. Clair, while CP concentrations were greater in Montgomery (Table 2). These findings emphasize how both environmental factors and fertility management influence the yield and quality of stockpiled bahiagrass.

    Stockpiling forages provides a cost-effective strategy for winter feeding by reducing the need for hay and supplements while supporting cattle performance. A comparison of feeding systems shows that stockpiled Tifton 85 bermudagrass costs $174.18 per cow, whereas feeding hay and whole cottonseed costs $506.53 per cow, which is nearly three times more (Carol et al., 2022). The higher cost of providing harvested forages is due to expenses of hay, supplements, labor, and machinery (Table 3). In contrast, stockpiling relies on pasture management, with lower input costs aside from nitrogen fertilization and grazing setup. Although this data is based on bermudagrass, similar economic benefits are expected with stockpiled bahiagrass

    Table 1. Forage yield (lb DM/ac) and forage heights (in) of stockpiled bahiagrass grown in Montgomery County, AL and St. Clair County, AL

     MontgomerySt. Clair
    2023202420232024
    Heights (in)10.914.412.815.1
    Yield (lb DM/ac)2345.53989.33232.23797.5

    Table 2. Nutritive values (% DM basis) of stockpiled bahiagrass grown in Montgomery County, AL and St. Clair County, AL

     MontgomerySt. Clair
    2023202420232024
    NDF (%)51.144.851.039.7
    ADF(%)25.623.726.423.5
    ADL (%)6.27.25.16.1
    TDN (%)62.666.362.769.3
    CP (%)7.37.76.96.5

    Table 3. Comparison of stockpiled Tifton 85 Bermudagrass and Hay and Cottonseed Supplementation on Cow-Calf Winter Feeding

    InputStockpiled T85Hay + Supplement
    Labor$16.97$32.50
    Hay$0$237.27
    6 lb whole cottonseed/head/day$0$146.16
    50 lb N/acre$23.91$0
    Grazing cost$108.80$0
    Machinery costs$24.50$90.63
    Total expense/cow$174.18$506.53

    Hurst, Ashlyn, Kim Mullenix, Leanne Dillard, and Josh Elmore. “From Grass to Gains: Why Stockpiling Bahiagrass Pays Off.Southern Ag Today 5(22.2). May 27, 2025. Permalink

  • Working Less on Friday!

    Working Less on Friday!

    Friday, May 23rd, brings us the next USDA Cattle on Feed report.  Most analysts anticipate April’s feedlot marketings to be more than 3 percent smaller than last year, with the same number of working days in April 2025 compared to April 2024.  Fed steer and heifer slaughter has declined dramatically, more than 5 percent from year-ago levels, over the last six weeks.  

    Saturday slaughter is often used as a measure of capacity utilization.  Fewer animals processed on Saturdays indicates declining capacity utilization or over capacity.  Declining cattle numbers mean that fewer may be processed on other days of the week.  Daily slaughter should suggest some thoughts about the ability of current packing plants to remain open in future months as cattle numbers contract.

    Over the last 6 weeks, steer and heifer slaughter has averaged 58,671 head on Fridays, down from 85,958 head during the first quarter of the year.  Other days of the week have remained relatively close to the average during the first quarter of the year and compared to all of 2024.  It appears that overall, packers are dealing with fewer cattle numbers by maintaining capacity on Monday through Thursday, even increasing head per day in the middle of the week, while sharply cutting back on Friday.  

    The decline in fed steer and heifer slaughter, even combined with historically heavy dressed weights, has certainly supported fed cattle prices to new record highs in recent weeks.  Grilling season beef demand has pulled the market even higher.  Feeder cattle and calf prices have gone along for the ride.  The cattle on feed report will provide another indication of how tight fed cattle supplies will be in the next few months.  Fewer cattle on feed will continue the trend of reduced Friday slaughter and may lead to reductions on other days, as well.  


    Anderson, David. “Working Less on Friday!Southern Ag Today 5(21.2). May 20, 2025. Permalink

  • Screwworms, Part II

    Screwworms, Part II

    The U.S. closed the border to Mexican cattle again on May 11, 2025.  This closure is the next round following the closure in late November 2024 and reopening in February 2025.  The closure was prompted by continued expansion in screwworm cases in Southern Mexico.  Additionally, new cases were reported as far North (or West as you read the map) as the states of Veracruz, Oaxaca, and Tabasco.  The narrowest part of Mexico, geographically the Isthmus of Tehuantepec, has been considered an important line of defense because this is where the country begins to widen. The widening area leads to more land area to treat, making effective control that much more difficult.

    Since the border was reopened to cattle in February, feeder cattle imports rebounded to about 20,000 head per week.  Imports have remained below 2024 and the previous five-year average.  Additional inspection and quarantine regulations likely slowed the pace of imports, as well as not all ports of entry operating for cattle.  Only 4 of the 11 ports of entry for cattle have been operating.  For example, of the six Texas ports of entry, only Presidio had cattle crossing since the border was reopened.  Santa Teresa, New Mexico is the largest cattle port of entry, and it had been operating since the week of February 8, 2025.

    Feeder cattle imports from Mexico peak seasonally in the Spring and Fall.  Over the 10 years from 2015-2024, feeder cattle imports from Mexico averaged 5.2 percent of feedlot placements into feedlots with over 1,000 head capacity.  Presumably, most of those cattle are placed into feedlots in Texas and the Southwest.  Annual feeder cattle from Mexico was the equivalent of  18.0 percent of annual feedlot placements in Texas, Oklahoma, Arizona, and California over the 2015-2024 period.  

    The loss of feeder cattle imports will further tighten feeder cattle supplies.  Already record high calf prices will likely see some more upward pressure.  The loss of these cattle will further pressure feedlots in the Southwest as well. 


    Anderson, David. “Screwworms, Part II.” Southern Ag Today 5(20.2). May 13, 2025. Permalink