U.S. Dairy Cow Slaughter Update – Apr ’16
According to USDA, Mar ’16 U.S. dairy cow slaughter of 261,800 head declined 6.1% MOM while also declining 3.6% YOY when normalizing for slaughter days. U.S. dairy cow slaughter rates have declined seasonally by an average of 1.2% MOM when normalized for slaughter days from February – March over the past ten years. Despite the decline, ’15-’16 YTD dairy cow slaughter remains up 0.7% YOY throughout the first half of the production season.
The monthly YOY decline in dairy cow slaughter was the largest experienced in the past seven months on a percentage basis. Declining slaughter rates contributed to the U.S. milk cow herd reaching a seven year high during Mar ’16. The total U.S. milk cow herd currently stands at 9.325 million head, which is 14,000 head more than March of last year.
The most significant MOM decline in dairy cow slaughter was exhibited in Standard Federal Region 9 (Arizona, California, Hawaii and Nevada), followed by Standard Federal Region 6 (Arkansas, Louisiana, New Mexico, Oklahoma and Texas). 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 declines in dairy cow slaughter were also exhibited in Standard Federal Region 9 (Arizona, California, Hawaii and Nevada) and Standard 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) continued to decline from the monthly record high experienced in Jan ’16, finishing down 15.8% MOM and 5.6% YOY. Monthly slaughter had reached record high levels as effects from Winter Storm Goliath were experienced, however slaughter levels have declined by a total of 29.0% throughout the past two months.
Dairy cow slaughter within Standard Federal Region 9 (Arizona, California, Hawaii and Nevada) declined 13.6% MOM and 4.8% YOY when normalizing for slaughter days. ’15-’16 YTD dairy cow slaughter is down 0.3% YOY throughout the first half of the production season within Standard Federal Region 9.