Meat + Poultry - June 2007 - 32

OVER-CAPACITY

The U.S. Dept. of Agriculture's National
Agricultural Statistics Service reported its
monthly survey of refrigerated warehouses
May 21. The report showed total stocks of
beef, pork, chicken and turkey meat accumulated in cold storage were 1.896 billion pounds, 14.8 percent lower than April
30, 2006 and 12.7 percent lower than the
2002-06 average.
BEEF: NASS reported total beef supplies in cold storage as of April 30 were
411.8 million pounds, 6.7 percent lower
than the previous year but 3.5 percent
higher than the five-year average. Boneless
beef stocks were 9.5 percent higher than
last year while stocks of bone-in beef were
8.9 percent lower than last year.
PORK: Supplies of pork products in
cold storage have climbed and are now at
levels similar to a year ago and the five year
average. NASS reported total pork supplies
to be 521.9 million pounds, 0.4 percent
higher than a year ago and 0.3 percent
lower than the five year average.
Pork belly stocks were at 61.8 million
pounds, 1 percent lower than a year ago
and also 1 percent lower than the five
year average.
Ham stocks were 79.2 million pounds,
13.8 percent higher than a year ago and
2.9 percent higher than the fi ve-year
average. Boneless ham stocks are 42 percent higher than last year. Bone-in ham
stocks were 4 percent lower. Pork trimmings were 53.7 million pounds, 7 percent
higher than last year.
CHICKEN: Stocks of chicken as of
April 30 were 606.9 million pounds, 28
percent lower than a year ago and 19 percent lower than the five-year average. The
large reduction in chicken stocks reflects
the surge in overall chicken prices and the
decision on part of some end users to work
off some of the accumulated stocks. NASS
reported turkey stocks to be 355.7 million pounds, 16 percent lower than a year
ago and 28.9 percent lower than the fiveyear average.
NASS reports are available at: www.
nass.usda.gov.

MEAT&POULTRY

June 2007

Photo courtesy of Sioux-Peme Packing Co.

Cold storage supplies
keep falling

Pork processing capacity has slowly increased in recent years, largely in response to growing
hog numbers in the U.S. and Canada.

This renewed focus showed up in
Tyson's positive beef results for its January to March quarter, but is bound to
put more pressure on other beef processors as there will be more competition for still-tight fed cattle supplies.
Right now, packers are asking each other which large plant will have to close
for the rest of them to run efficiently,
say analysts.
The U.S. feedlot industry also suffers
from over-capacity and is likely to do
so for some time. That's because available feeder cattle supplies will remain
tight the next two years and because
high corn prices will keep cattle outside
feedlots longer than normal. This factor
plus severe winter weather reduced the
cattle on feed total to 11.644 million head
on April 1 in feedlots with more than
1,000 head of capacity. Total capacity on
Jan. 1 of this year was 16.8 million, according to USDA. So feedlots nationally
were only 69.3 percent full. Even with
the record 12 million head on feed last
Dec. 1, feedlots were only 71.4 percent
full. Much of the under-utilization ap-

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pears to occur in the smallest feedlots,
between 1,000 head and 4,000 head of
capacity. These feedlots are less likely
than the larger commercial feedlots to
feed cattle year round. Nonetheless,
they still compete with larger feedlots
for cattle to fill pens and so they create
added demand for those cattle.
The United States has capacity to
feed at least 19 million cattle at any one
time. The main category of feedlots includes those containing 1,000 head and
over, which report feedlot data to USDA
each month. Data suggest the smallest
feedlots feed about 1.5 turns of cattle
annually, against two turns for larger
lots. It also shows the number of days
on feed has increased in recent years
from an average 120-130 to 160-170 in
most large feedlots. High-priced corn is
likely to reduce days on feed because
cattle will stay out on grass as long as
possible, say analysts. As noted, national herd numbers and feeder cattle
supplies have scarcely increased in the
past year, so feedlots will continue to
find it difficult to fill their pens.

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Meat + Poultry - June 2007

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