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Veteran Advisor

YES! Cattle feeding losses drop to under

$100/ head! Now that is an headline!


Feeding losses now under $100, packers margins decline

Greg Henderson, Editor, Associate Publisher, Drovers CattleNetwork   |   Updated: September 11, 2012


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Cattle feeding margins improved $31 per head last week, leaving average losses under $100 per head for the first time in two months, according to the Sterling Beef Profit Tracker.

Beef packers saw their margins decline nearly $25 per head on the week to slip to a negative $33 per head. The Sterling Beef Profit Quotient gained 87 points for the week and the industry profitability index is now negative 245, according to estimates developed by Sterling Marketing, Inc., Vale, Ore.

Pork producer margins declined $15 per head last week, with margins now $29 in the red per hog marketed. Negotiated cash hog prices declined $6.71 per hundredweight last week. Pork packer margins improved $5.75 per head for the week, pushing margins to more than $17per head, according to the Sterling Pork Profit Tracker.

A year ago cattle feeders sold cash cattle at $117 per hundredweight, resulting in losses of $109 per head. Last year cash hogs fetched $85.17 per hundredweight, resulting in losses of $1.64 per head.

The Sterling Beef and Pork Profit Trackers are calculated using actual weekly prices for both cattle and hogs, feed costs, beef and pork cutout prices, drop credits and other factors that influence profit margins.

The Sterling Beef Profit Tracker for the week ending Sept. 8:

  • Average feedyard margins: -$78.46 per head.
  • Average packer margins: -$33.34 per head.
  • Sterling Profit Quotient: -245.2.

The Sterling Pork Profit Tracker for the week ending Sept. 7:

Average farrow-to-finish margins: -$29.01 per head.

  • Average pork packer margins: $17.03 per head.

The Sterling Beef and Pork Profit Trackers are produced by Sterling Marketing Inc. and John Nalivka, president, Vale, Ore., and are published weekly by Drovers/CattleNetwork.


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Veteran Advisor

Re: YES! Cattle feeding losses drop to under

Oh yea this is gonna get interesting!


Make sure to read the comments. to.



Yesterday, 11 September 2012

  Eyewitness News



Showing 5 comments

  • Stueybonzo

    And why will there be less farmers? Because they're either moving off and farming in Gambia or being slaughtered like pigs in racially motivated violence...very little of which is being reported on by this news site and the government...

  • I thought this is the land of MILK and Honey....what is it becoming? Hope the bees dont desert us too!!! Then we have nothing left

  • Fiona910

    Jeez, and milk is already a luxury item because of the cost - now they tell us it's going to get even more expensive???

  • iaok

    Farmer gets about R2.80 a liter so who takes the rest before it gets to the shelves at around R9
    Been importing because it was cheaper and this put the farmers out of business. Now the has hit the fan.

  • Defcon_One

    Milk shortage? What, the cows on strike now too?

    "What do we want?"
    "More lucerne!" 
    "When do we want it?"



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