Weekly livestock news: June 5, 2023

Rising costs for ranchers lead to a smaller cattle herd and more expensive beef for shoppers

A rapidly shrinking cattle supply means hamburgers and steaks, already near record-level prices, are set to get more expensive. Herds are down because of years of drought, pandemic disruptions and widespread cost increases, which have prompted ranchers to sell off livestock. This has brought the number of cattle in the United States to its lowest level in nearly a decade. U.S. beef production is on track to drop more than 2 billion pounds in 2024, the biggest annual decline since 1979, according to the USDA. As costs rise for nearly every aspect of raising cattle, ranchers say they’re running out of reasons to replace livestock they send to slaughter. With less beef available, customers shouldn’t expect lower grocery bills for now, The Wall Street Journal reports.

Continued drought in cattle country will make herd expansion difficult, economist says

A University of Missouri economist warned that while drought conditions have improved across the United States, much of cattle country still desperately needs rain. Without rain, producers won’t be able to expand their herds given lack of pasture and hay prices, said University of Missouri livestock economist Scott Brown. According to the Drought Monitor released May 25, Nebraska, Kansas, western Oklahoma and parts of Texas remain in extreme or exceptional drought, the two most severe drought categories, Brownfield Ag News reports.

North American cattle prices rise as global beef supplies remain steady: Rabobank

Cattle prices in North America continue to rise to record highs even as global beef supplies are expected to remain steady for the next year, according to Rabobank’s Global Beef Quarterly report for the second quarter of 2023. Rising prices in the United States and Canada are “driven by declining production volumes and firm demand,” said Angus Gidley-Baird, senior analyst of animal protein at Rabobank. “It stands in contrast to other beef-producing and -exporting countries, which have declining or steady cattle prices. The spread between U.S. cattle prices and those in other countries is the largest in the history of Rabobank’s index.” Meat + Poultry has more.

What you need to know about new rules on antimicrobials and beef implants

Drovers reviews what livestock producers need to know when new FDA rules take effect June 11, meaning 91 antimicrobial products currently labeled over-the-counter will require a prescription. This means producers will need to have an established veterinarian-client-patient relationship. “I think the No. 1 thing to do is just take inventory of what you’re using and what you won’t be able to purchase after June 2023,” said Dr. Linda Tikofsky, senior associate director of dairy professional services at Boehringer Ingelheim. Additionally, a new FDA rule this month will affect beef producers using growth-promoting implants. The agency has defined specific production stages that will be used to determine if and when an implant can be administered.

Supreme Court narrows WOTUS definition

The Supreme Court has ruled in favor of an Idaho landowner in a case that will curtail the Environmental Protection Agency’s ability to regulate certain bodies of water, Feedstuffs reports. The court ruled that the Biden administration’s definition of “Waters of the United States” was too broad. The administration’s definition had given the EPA the authority to regulate various small bodies of water, including those on private land and farms, if they affected protected waterways. The court limited the EPA’s authority to only wetlands “with a continuous surface connection” to navigable waterways. A concurring opinion said the majority went too far and that the decision means minor features like human-made dikes, natural river berms or beach dunes could leave otherwise connected wetlands unprotected. Livestock industry groups supported the decision.

USDA program aims to help livestock producers prepare for foot-and-mouth disease outbreaks

The USDA wants livestock producers to be aware of and prepared for procedures to take during a potential foot-and-mouth disease outbreak. The Secure Beef Supply Plan is a program funded by the agency that aims to help producers prepare continuity-of-business plans now so they can request a permit faster once livestock movement is allowed during an outbreak. The program may also help them reduce other disease outbreaks, Farm Progress reports. It involves creating an enhanced biosecurity plan and preparing operation personnel to monitor cattle and other susceptible species for signs of FMD.