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CME: Results of 'Meat Production, Distribution and Income' Report

03 June 2019

US - USDA NASS released "Meat Production, Distribution and Income" last Thursday for 2018, along with the Final Estimates from 2013-2017. Among the reported numbers is cash receipts, value of home consumption and gross receipts, reports Steiner Consulting Group, DLR Division, Inc.

Sheep and lamb values were discontinued from this report since 2012, leaving only cattle and calves and hogs and pigs. Nearly 100 billion pounds of pork and beef were marketed in 2018, 40 percent of which was pork production. Over 75 percent of the cash receipts value was generated by cattle and calves. Total gross receipts for these two industries was $88.6 billion in 2018.

Cattle and calves cash receipts data dates back to 1979. The highest annual value ever reported was $81.1 billion in 2014, brought on by very tight cattle inventory following several severe drought years and boosted by the highest cattle prices on record.

Prior to 2009, cash receipts for cattle and calves had never broken $50 billion and the highest was $49.8 billion in 2007. After breaking the $50 billion mark in 2010, cash receipts in the cattle industry have averaged $67.2 billion per year over the last 9 years.

The range though during those years has been quite wide, from $51.2 billion to the record large $81.1 billion. Last year, was the fourth largest cash receipts value in the last 10 years.

The value of home consumption, defined as the total value of on-farm and custom slaughter consumed on the farm where it was produced, has had several inflection points since 1979. Prior to 1985 the value of home consumption for cattle and calves was worth between $500 to $700 million but steadily declined from 1979 to 1996.

In 1996 the value of home consumption was at its lowest point at $274 million, before picking back up again. Today, that value is back up to $431 million in 2018, and was even up above $600 million in 2014 when prices were record high. The long term farm slaughter trend is one of shrinking numbers in the cattle industry.

You can view the Meat Production, Distribution and Income report for 2018 by clicking here, and the Final Estimate from 2013-2017 can be viewed by clicking here.

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