LIVESTOCK OVERVIEW

The Cattle industry is truly the last bastion of small independent producers left in United States agribusiness. Approximately 67 percent of the Cattle produced in the United States are small to mid size, single, family-owned Cattle operations with less than 500 head. According to a survey done in 1996, almost half of the Cattle businesses in operation have been in the same family for over 50 years.

Supply / Production Considerations
Cattle production begins with the cow/calf operator. These traditional ranchers are in the business of breeding cows and producing calves (or baby cattle). Cows are typically bred in the late summer or early fall to time birthing with the onset of spring, since Cattle require range to graze and the pasture conditions can support larger herd sizes more easily. Because Cattle production tends to be centered in states with harsh winters, like Texas, Kansas, Nebraska, Colorado, Oklahoma, Iowa, South Dakota, Minnesota and Montana, spring birthing is important since the weather is more hospitable to the calves.
Roughly one to three months after a calf is born, the male calves are castrated, producing a steer. Calves are typically weaned from their mothers at 6 to 10 months of age, when they weigh between 300 to 600 pounds. Commercial cow/calf operators then usually sell the weaned calf to a stocker operation, which grazes the animals until they reach "Feeder" weight of 600 to 800 pounds.

Demand / Consumption Considerations
The major demand for Live Cattle is as beef. Beef is what's for dinner, (at least that is what the American Beef Council would like one to think). The Cattle Industry, through boards and councils (like the American Beef Council), have taken to marketing in recent years to increase public awareness of beef, as well as educate people on the nutritional aspects of beef. This type of target marketing, with an emphasis on advertising on radio, television and print, has turned around the consumer's viewpoint of beef. After declining since 1986, average per capita beef consumption has stabilized at approximately 67 pounds per capita retail weight. Consumption is expected to range from 64 to 67 pounds in the next several years.

The bulk of United States produced beef is used domestically, though the export market for United States Beef is increasing. Demand for beef tends to increase when the population and income levels increase. Demand for the better cuts of meat, referred to as choice beef, has kept pace with population increases, though rarely exceeding it. Beef demand is somewhat elastic. When beef prices increase, people tend to eat more pork, poultry and pastas. Shifts in public tastes play an important role in the Cattle population cycle .

To learn more, contact USIG today: 1- 800-974-8744

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