USDA’s Foreign Agricultural Service recently released the latest Livestock and Poultry: World Markets and Trade report. The report provides estimates for production, consumption and trade for beef, pork and chicken for major countries. The article focuses on the Mexican beef and cattle industry.

Both feedlot inventories and cattle slaughter have remained stubbornly high this year due to drought-forced movement of cattle out of the country. Feedlot production, cattle slaughter and beef production are all expected to decrease sharply in 2023.

The year kicked off with a cattle inventory estimated to be down 2%, thanks to a 2021 calf crop down 2.3% from the previous year, due largely to the pressures brought on by drought and high input costs for feed, fuel, fertilizer and labor. This Market Intel provides farmers and ranchers with a snapshot of what is happening to the U.S. cattle herd as we head toward the finish line of 2022.

Drought and pasture conditions have improved from the previous month, but the situation is still very poor compared to last year and previous years. 

Month after month this year, feedlots have maintained large numbers of cattle on feed relative to history as more calves are being pushed into feedlots at a quicker-than-normal pace due to the drought impact on forage availability.

Year-to-date U.S. cattle imports total 951,910 head, down 6.3% year over year. Total cattle exports thus far in 2022 are 192,415 head, down 36.7% from the record cattle export total last year.

The U.S. beef export market has shown that it will continue to expand, even if export access is lost to key countries.

Aided and abetted by the drought, feedlots put together another month of large placements in July.

On July 22, the USDA National Agricultural Statistics Service (NASS) released the midyear Cattle report. It provided a snapshot of the U.S. cattle herd, which includes both beef and dairy cattle as well as a glimpse into producers’ outlook for retaining heifers and the availability of cattle for placement in the coming year.