U.S. Dairy Cow Slaughter Update – Jan ’17
According to USDA, Dec ’16 U.S. dairy cow slaughter of 253,000 head declined 0.3% MOM while also finishing 0.9% below the previous year on a YOY basis when normalized for slaughter days. The YOY decline in U.S. dairy cow slaughter rates was seventh experienced throughout the past ten months while the seasonal decline in slaughter rates of 0.3% was a contraseasonal move when compared to the ten year average November – December seasonal increase of 0.4%.
’15-’16 annual dairy cow slaughter finished down 0.3% 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. As of Nov ’16, the total U.S. milk cow herd stands at 9.34 million head, which is 17,000 head more than November of last year.
The most significant MOM decline in dairy cow slaughter was exhibited within 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 decline in dairy cow slaughter was exhibited within Standard Federal Region 4 (Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina and Tennessee), followed by Federal Region 6 (Arkansas, Louisiana, New Mexico, Oklahoma and Texas).
Dairy cow slaughter within Standard Federal Region 6 (Arkansas, Louisiana, New Mexico, Oklahoma and Texas) increased 2.2% MOM but remained 6.9% 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 8.3% YOY throughout the past ten months.
Dairy cow slaughter within Standard Federal Region 9 (Arizona, California, Hawaii and Nevada) increased 0.9% MOM but remained 1.7% lower YOY when normalized for slaughter days. Dairy cow slaughter within Standard Federal Region 9 has declined on a YOY basis over six consecutive months through December.