Southern Ag Today

Category: Livestock Marketing

  • Strong Meat Export Totals in 2021

    Strong Meat Export Totals in 2021

    The latest estimates for meat trade were recently released by USDA ERS. These estimates include export and import data across many different meats including beef, pork, and broilers during the month of August. This article highlights beef export data as each sector is on track for record or near-record export totals in 2021.  

    Beef exports set a record at 325 million pounds during August and were 21 percent higher than in August  2020. Japan was the largest volume destination for beef exports during August followed by South Korea and  China. The year-over-year increases in beef exports to China have been large throughout 2021 as shown in the chart above. Exports to Hong Kong have declined. Combined, year-to-date beef exports to China and Hong  Kong are 163 percent above 2020 levels. 

    Pork exports during August were about the same as during August 2020. However, there were big shifts in volumes to particular destinations. Pork exports to China (the third largest volume destination) during August were 49 percent lower than during August 2020. However, exports to Mexico were 50 percent higher which offset the declines to China. Mexico was the largest volume destination during August followed by Japan. 

    Broiler exports were up 5.5 percent above August 2020. The biggest increases were in exports to Mexico (up  22 percent) and Cuba (up 80 percent) from August 2020. These countries were the top two export destinations during August. 

     

    Maples, Josh. “Strong Meat Export Totals in 2021.”. Southern Ag Today 1(44.2). October 26, 2021. Permalink

  • Commercial Poultry Input Costs Heating Up!

    Commercial Poultry Input Costs Heating Up!

    Poultry growers across the southeastern broiler belt are watching heating fuel prices closely. Most commercial poultry houses are heated with either liquid propane (LP) and natural gas (NG) and heating costs can account for upwards of 40% of the annual cost of production.  Currently, commodity trading prices of LP and NG are at 5-year highs. The reasons for this are multi-faceted but are closely related to a national supply deficit approaching 30 million barrels of LP per the latest U.S. Energy Information Center’s inventory update. Additionally, the NG crisis in Europe and Asia created a driver for prices to move higher as traders buy BTUs across the energy spectrum. Since LP is primarily a byproduct of crude oil & NG production, recent disruptions in offshore oil and the overall decrease in domestic oil production has shortened LP supply. Natural gas price has moved up 2.5x in the past year. This has a major impact on propane prices as natural gas acts as a price floor for propane. These factors, along with higher trucking costs, are indicators that LP prices could continue to rise this winter and reach all-time highs in the short-term.  The bottom line for poultry growers is to do all they can now to prepare for significantly higher heating fuel costs this winter. This includes considering available price security options sooner rather than later and doing all the tightening up and insulating of their houses they can manage. It could be a long winter. 

    commercial poultry graphic

    Brothers, Dennis. “Commercial Poultry Input Costs Heating Up!” Southern Ag Today 1(43.2). October 19, 2021. Permalink

  • Cow Prices Start Seasonal Slump

    Cow Prices Start Seasonal Slump

    Fall is here and cow prices have begun to decline from their summer seasonal highs.  Cull cow prices in the Southern Plains that hit $64 mid-year have given back about 22 percent of that price as of last week.  Over the last five years, cow prices have declined by about one-third from mid-year to November.

    Cow prices normally decline this time of the year because culling picks up across the country.  Beef cow culling normally hits its annual peak in October-November each year.  This year, beef cow slaughter remains well above last year (up 10 percent), likely encouraged by drought in the West.  Dairy cow culling normally peaks in January-February and again late in the year.  Beef and dairy cow sales, increasing at the same time in the Fall, combine to force lower cull prices.

    A couple of good questions remain for the Fall.  Did the surge in beef cow culling over the Summer pull ahead cow slaughter so there are fewer to go to market this Fall?  Will high feed costs and struggling milk prices push more dairy cow culling?  A long-used strategy has been to buy cows (or keep some cows) at depressed prices in the Fall to take advantage of seasonal price increases the next Spring.  A smaller beef cow herd will likely support higher cow prices in 2022, but it will be important to consider high feed costs in this strategy.

    Anderson, David. “Cow Prices Start Seasonal Slump.” Southern Ag Today 1(42.2). October 12, 2021. Permalink