US slaughter levels drop
11 December 2008Livestock analysts say that lower wholesale beef prices have forced packers to cut slaughter levels.
According to meatingplace.com, total slaughter dropped in the first week of December to 618,000 head, representing an almost 7.5% reduction from the year-earlier period. Steer and heifer fell 7.8% to 486,000 head from 527,000 head and cow and bull slaughter declined 5 to 132,000 head. Analysts said wholesale beef prices closed the week down 3.3% on the week before and were slightly below year previous levels, but noted two additional factors are affecting the cattle complex: plummeting feeder cattle prices due to limited demand from feedlots and a sharp decline in cattle hide/offal values owing to a decline in export prices.
