The U.S. beef-cow herd on July 1 was the smallest in at least 37 years as farmers remained wary of beef demand during the economic recovery after losing money in the past two years.
Cattle producers may make about $51.53 per cow this year, after losses in 2009 and 2008 because of high feed costs and declining beef demand, said Erica Rosa, an economist at the Livestock Marketing Information Center in Denver. Uncertainty about economic recovery may be keeping ranchers from expanding herds, she said.
“Overall, cow-calf producers continue to reduce herd numbers, rather than expand by retaining heifers,” Rosa said by e-mail. “Although calf and feeder-cattle prices are higher than 2009, input/production costs still remain high and there is still quite a bit of uncertainty currently and about the future.”
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