Rate of Herd Expansion Slows Down

USDA’s July 1 cattle report confirmed that drought conditions across much of the U.S. prompted a slowdown in the rate of increase of the cow herd.  The total number of beef and dairy cows was very modestly above 2005’s.

According to USDA, as of July 1, all cattle and calves in the U.S. totaled 105.7 million head, 1.2 million head (or 1.1 percent) above a year ago and 2.2 percent over 2004’s.  The number of beef cows was reported at 33.9 million head, up less than 1/2 a percent from last year while the number of dairy cows at 9.2 million head was 1.1 percent larger.

Of importance was the number of heifers 500 pounds and over held for beef replacements, which totaled 5 million head, unchanged from the prior year and lower than the average industry expectation.  However, dairy heifer replacements were nearly 3 percent higher than 2005 at 3.8 million head and 200,000 head above 2004.

USDA reported the number of steers 500 pounds and heavier was 3.5 percent larger than a year ago.

The USDA estimated the 2006 U.S. calf crop at slightly above 2005’s, however the year-to-year increase was smaller than expected given the larger cow herd on Jan. 1 of this year.  USDA reported the calf crop at 3.79 million head, 3/10 percent or 120,000 head more than 2005.