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With its abundant grasslands and large grain supply, the United States
has developed a beef industry that is largely separate from its dairy
sector. The United States has the largest fed-cattle industry in the
world, and is the world's largest producer of beef, primarily high-quality,
grain-fed beef for domestic and export use. The industry is roughly
divided into two production sectors: cow-calf operations and cattle
feeding.
Cattle Cycle
The cattle cycle refers to cyclical increases and decreases in the cattle herd over time, which arises because biological constraints prevent producers from instantly responding to price. In general, the cattle cycle is determined by the combined effects of cattle prices, the time needed to breed, birth, and raise cattle to market weight, and climatic conditions. If prices are expected to be high, producers slowly build up their herd size; if prices are expected to be low, producers draw down their herds. The cattle cycle averages 8-12 years in duration, the longest of all meat animals, but the effects of persistent dry conditions on pastures and harvested forage supplies can lead to shortened or extended cycles.
Dry conditions that began in 1996 and persisted from 1998 through 2003 held down the retention of heifers until forage conditions improved. By late 2003 and 2004, grazing conditions had improved and ended a 9-year cyclical liquidation of cattle inventories. This, together with strong feeder calf prices, began the process of herd expansion through the addition of heifers and calves. The expansion lasted until 2007; then inventories began declining because of increasing feed and energy prices. The National Agricultural Statistics Service (NASS) provides information on cattle
numbers in semi-annual inventory reports.
Cow-Calf Operations
Cow-calf operations are located throughout the United States, typically
on land not suited or needed for crop production. These
operations are dependent upon range and pasture forage conditions,
which are in turn dependent upon variations in the average
level of rainfall and temperature for the area. Beef cows
harvest forage from grasslands to maintain themselves and
raise a calf with very little, if any, grain input. The
cow is maintained on pasture year round, as is the calf
until it is weaned. If additional forage is available at
weaning, some calves may be retained for additional grazing
and growth until the following spring when they are sold.
The average beef cow herd is 40 head, but operations with
100 or more beef cows comprise 9 percent of all beef operations
and 51 percent of the beef cow inventory. Operations with
40 or fewer head are largely part of multi-enterprises,
or are supplemental to off-farm employment.
Cattle Feedlots
Cattle feeding is concentrated in the Great Plains, but is also important
in parts of the Corn Belt, Southwest, and Pacific Northwest. Cattle
feedlots produce high-quality beef, grade Select or higher, by feeding
grain and other concentrates for about 140 days. Depending on weight
at placement, feeding conditions, and desired finish, the feeding
period can be from 90 to as long as 300 days. Average gain is 2.5-4
pounds per day on about 6 pounds of dry-weight feed per pound of gain.
While most of a calf's nutrient inputs until it is weaned are from
grass, feedlot rations are generally 70 to 90 percent grain and protein
concentrates.
Feedlots with less than 1,000 head of capacity comprise the vast majority of U.S. feedlots but market a relatively small share of fed cattle. In contrast, lots with 1,000 head or more of capacity comprise less than 5 percent of total feedlots but market 80-90 percent of fed cattle. Feedlots with 32,000 head or more of capacity market around 40 percent of fed cattle. The industry continues to shift toward a small number of very large specialized feedlots, which are increasingly vertically integrated with the cow-calf and processing sectors to produce high-quality fed beef. NASS provides monthly Cattle on Feed reports.
Census Maps
The following maps from the 2002 Census of Agriculture provide information
on cattle inventories and cattle sold.
To view all the maps, see 2002
Census of Agriculture, Maps and Cartographic Resources.
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