Less Heifers on Feed

Less Heifers on Feed

I’m KayDee Gilkey with today’s Open Range.

January USDA’s Cattle on Feed Report was released a week ago. There was a lot of information to sort through but one reduction in feedlot numbers may be an indicator that beef producers are considering future herd expansion.
USDA Livestock analyst Shayle Shagam gives more details.
Shagam: “There was a 10 percent decline in the number of heifers and heifer calves in feedlots on January first.”

That is a 10 percent decline in actual numbers compared to a year ago at just over 4 million head. More telling Shagam says is the percentage of heifers compared to the total numbers is also down from last January.

Shagam: “You are talking about 36 percent of the number on feed on January were heifers compared to almost 38 percent last year. So the total number of heifers on feed proportioned to the total number is smaller which could imply that there is some retention of heifers in hopes that they can breed those animals next year if there is a return to good forage.”

Certainly the prices that feeder cattle are fetching would encourage expansion. The drought continuing into this summer, may derail some ranchers hopes of expanding their herd. We will get a better idea of what is going on with herd numbers as today USDA is releasing its semi-annual Cattle Inventory Report so we will learn more shortly.