Idaho’s Beef Industry

Beef production is essential for the vitality of Idaho’s economy.  As of January 1, 2008 there were 2.23 million head of cattle and calves in the state ranking Idaho 14th in the U.S., which represents 2% of the United State’s production.  The total value of all these cattle is over $2.83 billion.  Of these cattle, 460,000 were beef cows that had calved.  In 2007 Idaho had a record high for calves born in the state, which accounts for the record high of all cattle and calves on January 1, 2008.  However, the number of beef cows in the state decreased from 473,000 head in 2007 to 460,000 head in 2008.  The cost of inputs, such as feed and fuel, and the devastating fires in 2007 were among many factors that contributed to the reduction in Idaho’s beef cow numbers.  On the other hand, dairy cow numbers increased throughout the state.  Inventory as of January 1, 2008 showed beef cow replacements to total 95,000 head, down from 2007 by 10,000.     

Cash receipts for all commodities in Idaho were just under $5.682 billion in 2007.  Receipts from livestock increased by 35% in 2007 for a total of $3.27 billion.  This was the 7th consecutive year for Idaho in which the cash receipts from livestock exceeded those of crops.  The number of cattle and calves marketed in 2007 increased by 3% as compared to 2006 (total equals 1.22 million head).  However, when broken down the number of fed cattle marketed in 2007 was 524,000 head; a decrease by 18,000 head compared to 2006 and the lowest numbers recorded since 1998.  The number of calves marketed in 2007 was equal to those marketed in 2006.  This means that cows and other categories of cattle marketed increased.  This increase in total marketing, along with record high prices for beef cattle at $82/cwt factored into the 7% increase in cash receipts for 2007 to total $1.09 billion.  However, the price for calves under 500 pounds fell from an average of $121/cwt in 2006 to $111/cwt in 2007.

We had a wild year in 2008 with the economy, which most definitely has had an effect on the beef industry in not only Idaho, but also the U.S. and the rest of the world.  As we have seen here in Idaho, the beef cattle numbers are declining worldwide.  There has been volatility in the cost of everything from feed to fuel this past year.  Consumer demand for beef has declined and they are buying the less expensive cuts.  For 2009 there will be a tight supply, which could mean better prices for cattle; however, experts say the greatest impact on price will come from the demand side of the equation and that producers also need to be careful of the volatility in feed prices.

  All values are from the 2008 Idaho Agricultural Statistics compiled by the
USDA, NASS, Idaho Field Office