November 7,2014
Veteran auctioneer David Macedo of Tulare says he has never seen anything like it.”We’re setting a record price every week at the sales yard” observes Macedo who has been running the Tulare Sales Yard for over 30 years.
“Four year ago we were struggling to get 70 cents a pound on a 300 pound Holstein cow. Yesterday we sold some at a live auction for $3.15 a pound. Video sales have gone as high as $3.23.”
Macedo is also the city’s mayor. He says a recovery in the economy is helping the cattle and the dairy industry this year as well as his city’s budget picture. For now “ revenues are up and expenditures are down.”
Demand overseas continues to drive meat prices higher.
“We see no end to the price increase” even though a stronger dollar in the past month – up about 10% – could slow export sales. ”There are just not enough beef cattle out there which pushes the price of dairy cattle higher. “
The shortage has meant that local cattlemen are selling new born bull calves for $600 each “before they are born.”
Readers in LA got glimpse of the situation when a thief was caught with a calf in his back seat this week after it was heisted from a Riverside dairy.
In California the drought has impacted the number of head being raised adding to the shortage.
“Unlike poultry and hogs it takes a long time for the cattle industry to add new supply since a cow only has one calf a year. ”
The latest USDA report this week shows Cattle and calves on feed for slaughter in California feedlots totaled 415,000 head on October 1, 2014 which is 16 percent lower than October 2013. Marketings of 38,000 head were 28 percent below September 2013. California’s production of red meat during September 2014 totaled 109.7 million pounds, 9 percent higher than the previous month, but 22 percent lower than September 2013.
Live-cattle jumped to an all-time high of $1.705 a pound last week with futures prices up 23% this year. Now that the Midwest has seen a return to wet weather – operators are holding on to their herds looking to build them back up after last year’s Midwest drought. But that has meant for now – beef supply is short.
Consumer are seeing the increases as retail prices in September that have climbed more than 21 percent compared to September 2013 says USDA.