March 2014 Articles

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Canadian and U.S. Cow Slaughter Numbers Linked

CANADIAN AND U.S. COW SLAUGHTER NUMBERS LINKED Source: www.aragriculture.org
Since late summer, U.S. imports of Canadian slaughter cows have been significantly above a year ago, with rather large year-over-year increases in recent weeks. At the same time, cow slaughter within Canada has declined. There are a number of factors contributing to this situation, most relating to plant closures, reduced processing schedules, and market conditions. This situation has propped-up the number of cows slaughtered in the U.S.
So far this year, U.S. imports of Canadian slaughter cows have been up 32% from last year, with weekly imports above a year ago each week since mid-May. For the first 3 of weeks November, import volumes were more than twice as large as 2011’s. In 2011, slaughter cow imports accounted for about 8% of total U.S. weekly cow slaughter. So far this year, imports of Canadian cows have accounted for 6% of total U.S. cow slaughter. Since May that share fell to 5% as domestic cow slaughter (mostly dairy cows) increased. Canadian cow slaughter numbers so far this year are down about 17% compared to a year ago, with slaughter levels running around half or less of last year levels since mid-September.
According to LMIC Canadian members, in late May a major cow slaughter plant in the province of Quebec was closed resulting in many more animals exported to the U.S., most of these being dairy cows going to be processed in eastern states. Since June, weekly imports from Quebec have averaged about 1400 head larger than a year ago. That situation is expected to continue. Another factor influencing cows being processed in the U.S. and in Canada was the temporary shutdown of the XL-Foods plant in Alberta, the largest beef packing plant in Canada. When that western Canadian plant reopened, steer and heifer slaughter was the priority which resulted in a delay in cull cow marketings. That contributed to both larger U.S. cow imports from Alberta as well as large slaughter declines in Canada. Packing plant closures in Canada have negatively impacted Canadian cow prices relative to those in the U.S., changing the flow of animals mostly in the eastern border areas between the U.S. and Canada.
Source: Livestock Marketing Information Center (www.lmic.info)