As the industry looks ahead to the inevitable rebuilding of a national cow herd that saw near-record liquidation over the past two years, cattle on feed in the U.S. remained below 2022 levels through the first quarter of 2023, according to the USDA’s Economic Research Service (ERS).
The latest ERS Cattle on Feed report showed that as of April 1, cattle and calves on feed and bound for the slaughter market at feedyards with capacities of 1,000 head or more totaled 11.6 million head, a 4% decrease from the same time a year ago. Among that inventory were 7.12 million steers, down 6% from 2022. Heifers accounted for 4.5 million head, down 2%.
March feedlot placements were also down, but only by 1%, at 1.99 million head. In March, 390,000 head of sub-600-pound calves were placed, with 310,000 head between 600 and 699 pounds, 540,000 head at 700 to 800 pounds, 517,000 at 800 to 899 pounds, 175,000 at 900 to 999 pounds and 60,000 heavier than 1,000 pounds.
The ERS also reported that a total of 1.98 million fed cattle were marketed in March, 1% below 2022, while other disappearance remained unchanged from a year ago at 53,000 head.
Many producers and industry organizations have expressed optimism regarding feed availability and prices for the second half of 2023 after drought severely affected those factors over the last two years. Even so, Rabobank animal protein analyst Lance Zimmerman said in a recent report, there will likely not be any significant progress made toward increasing the national cow herd until at least 2025 as cow-calf producers focus on building a more sustainable and economically viable herd. As such, the industry can likely expect similar ERS reports of decreased cattle on feed throughout 2023.
