Cow-Calf Corner: How will cattle and beef markets be different in 2016; Passive immunity status and long-term health and performance of calves

Author: Kristy

Jan. 4, 2015

How will cattle and beef markets be different in 2016?
by Derrell S. Peel, Oklahoma State University Extension Livestock marketing specialist

Cattle markets in 2015 transitioned from what 2014 was to more like what 2016 will be. Beef production will be up three to four percent annually from 2015 levels, which was the lowest since 1993. Increased beef production in 2016 is still a low number historically. That increase began with a two percent year over year increase in beef production in the fourth quarter of 2015. Beef production will grow more in the second half of 2016 as limited recent feedlot placements will constrain beef production the first few months of the year.

Beef herd expansion was aggressive in 2015. The annual inventory numbers due out on Jan. 29 will confirm just how aggressive and how the stage is set for 2016. Herd expansion will continue in 2016, though perhaps a bit slower than earlier expected as a result of the market shake-up in late 2015. Feeder cattle supplies will increase on a projected 1.2 percent higher 2015 calf crop but will be tempered by continued heifer retention and lower cattle imports. Cattle imports from Canada were down 27 percent year over year through October and Mexican cattle imports, though up nearly five percent for the year, dropped an estimated 30 percent year over year in the fourth quarter of 2015. Herd rebuilding in both Canada and Mexico and lower U.S. cattle prices will likely keep cattle imports down in 2016.

Changes in meat trade and the situation for competing meats will modify 2016 meat consumption significantly relative to 2015. For beef, 2015 consumption was fractionally higher year over year from 2014 as a surge in beef imports more than offset decreased beef production. In 2016, sharply lower beef imports will likely offset much of increased domestic production and lead to an expected one percent increase in domestic beef consumption. Beef imports began dropping in late 2015 with October imports (latest data) down 13 percent, led by a 33 percent year over year drop in imports from Australia. 2016 beef imports are projected down year over year by 12 to 15 percent. Beef exports are expected to be plus or minus equal to 2015 levels after dropping by nearly 14 percent in 2015. Beef export recovery will be slow but may begin in 2016. Lower beef prices will support beef exports but continuing global economic concerns, especially regarding China, will likely keep the dollar value high and limit beef (and other meat) exports.

Pork production, after jumping 7.4 percent year over year in 2015, will grow much more modestly in 2016, perhaps around one percent. Most of that growth will be in the first quarter of 2016 as peak market hog inventories move through meat markets. The December Hogs and pigs report confirmed that current hog numbers are record high but also showed that peak production is on the ground now and sow farrowings are expected decrease into 2016. Pork exports, up a sluggish 1.9 percent in 2015, are projected to increase six to seven percent in 2016. Modest production increase and better pork exports mean that domestic pork consumption may actually decline fractionally in 2016.

Broiler production is also expected to grow more modestly in 2016; perhaps two to three percent compared to nearly 4 percent in 2015. More importantly, in the absence of any more avian influenza, broiler exports are projected to increase seven to eight percent year over year, compared to a 12 percent drop in 2015. Domestic broiler consumption is projected to increase 1.5 percent in 2016; compared to a 6.2 percent increase year over year in 2015.

Taken together, these changes in meat production mean that total meat production will increase less than 2 percent in 2016, compared to a 2.7 percent year over year increase in 2015. More importantly, meat production combined with trade impacts mean that total meat consumption will only increase fractionally in 2016 following a 4.5 percent year over year increase in 2015. While beef production will increase the most, the overall meat situation will be more favorable in 2016 compared to 2015.

Passive immunity status and long-term health and performance of calves
by Glenn Selk, Oklahoma State University Emeritus Extension animal scientist
You have heard the warning: “What happens in Las Vegas, stays in Las Vegas!!!” Perhaps you have not heard: “What happens in the first 24 hours, impacts the rest of a calf’s life!”

Veterinary scientists, while with the USDA experiment station at Clay Center, Nebr., monitored health events and growth performance in a population of range beef calves in order to identify associations of production factors with baby calf passive immune status.

Blood samples were collected at 24 hours after calving from  263 crossbred calves to determine the amount of passive maternal immunity that had been obtained from colostrum. Colostrum is the first milk produced by a cow upon giving birth. The baby calves were classified with inadequate or adequate passive immune status based on that blood sample at 24 hours of age. Growth performance and health events in the study population were monitored from birth to weaning, and after weaning throughout the feedlot phase.

The lowest levels of passive immunity were observed among calves that were sick or died prior to weaning. Calves with inadequate passive immunity had a 5.4 times greater risk of death prior to weaning, 6.4 times greater risk of being sick during the first 28 days of life, and 3.2 times greater risk of being sick any time prior to weaning when compared to calves with adequate passive transfer. Based on 24 hour proteins (most of which are antibodies or immunoglobulins) in the blood, the risk of being sick in the feedlot was also three times greater for inadequate, compared to adequate calves. Passive immune status was also indirectly associated with growth rates through its effects on calf health. Sickness during the first 28 days of life was associated with a 35 pound lower expected weaning weight. Respiratory disease in the feedlot resulted in a .09 lb lower expected average daily gain.

Thus, passive immunity obtained from colostrum was an important factor determining the health of calves both pre- and post-weaning, and indirectly influenced calf growth rate during the same periods. Therefore, the cow calf producers can help themselves and the future owners of their calves, by properly growing replacement heifers, providing a good health program for cows and heifers, and providing natural or commercial colostrum replacers to calves that do not receive it in adequate quantities on their own. Remember that most of the transfer of antibodies from colostrum to the calf happens in the first 6 hours.  The first day sets the stage for the rest of his life. (Source: Wittum and Perino. 1995. Amer. Jour. Of Vet. Research. 56:1149.)

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