U.S. Dairy Cow Slaughter Update – Dec ’16
According to USDA, Nov ’16 U.S. dairy cow slaughter of 243,200 head increased 4.8% seasonally MOM while also finishing 1.0% higher on a YOY basis when normalized for slaughter days. The YOY increase in U.S. dairy cow slaughter rates was only the third experienced throughout the past nine months, however the seasonal increase in slaughter rates of 4.8% was larger than the ten year average October – November increase of 2.2%.
’15-’16 annual dairy cow slaughter finished down 0.4% as rates declined 1.5% below the previous year levels over the second half of the production season. Declines in slaughter rates have contributed to the U.S. milk cow herd finishing at the highest figures experienced throughout the past 18 years over recent months. The total U.S. milk cow herd currently stands at 9.34 million head, which is 17,000 head more than November of last year.
The most significant MOM increase in dairy cow slaughter was exhibited within Standard Federal Region 9 (Arizona, California, Hawaii and Nevada), followed by Standard Federal Region 3 (Delaware, Maryland, Pennsylvania, Virginia and West Virginia). Figures for Standard Federal Region 5 (Illinois, Indiana, Michigan, Minnesota, Ohio and Wisconsin) were withheld to avoid disclosing data for individual operators.
The largest YOY increase in dairy cow slaughter was exhibited within Standard Federal Region 3 (Delaware, Maryland, Pennsylvania, Virginia and West Virginia). Slaughter rates remained lower on a YOY basis for the second consecutive month throughout Standard Federal Region 6 (Arkansas, Louisiana, New Mexico, Oklahoma and Texas) and Standard Federal Region 9 (Arizona, California, Hawaii and Nevada), however.
Dairy cow slaughter within Standard Federal Region 6 (Arkansas, Louisiana, New Mexico, Oklahoma and Texas) declined 2.1% MOM while also remained 2.8% lower YOY when normalized for slaughter days. Monthly slaughter rates had reached record high levels during Jan ’16 as effects from Winter Storm Goliath were experienced, however slaughter levels have declined by a total of 8.5% YOY throughout the past nine months.
Dairy cow slaughter within Standard Federal Region 9 (Arizona, California, Hawaii and Nevada) increased seasonally by 6.0% MOM but finished down 0.8% YOY when normalized for slaughter days. Dairy cow slaughter within Standard Federal Region 9 has declined on a YOY basis over five consecutive months through November.