Jim Robb News
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U.S. hog farmers are slaughtering animals at the fastest pace since 2009 as a surge in feed costs spurs the biggest losses in 14 years, signaling smaller herds next year and a rebound in pork prices.
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The U.S. cattle herd probably shrunk to the smallest size since 1958, and the drop in beef supplies may boost prices to a record, analysts said.
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The cattle herd in the U.S. may be the smallest since 1958, when McDonald’s Corp. had just 79 hamburger restaurants, signaling tighter beef supplies and higher costs for companies including Tyson Foods Inc.
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The U.S. cattle herd as of July 1 probably shrunk to the smallest on record, signaling tightening beef supplies and higher costs for shoppers and companies from Tyson Foods Inc. to Wendy’s Co.
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The U.S. may ship the most beef ever in 2011, after doubling its share of the world market in four years, as demand from Asia revives a $3.84 billion export industry decimated by mad-cow disease.
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The U.S. cattle herd shrank to the smallest size in 53 years as of Jan. 1, as feed costs climbed and beef producers slaughtered more animals to take advantage of higher prices.
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Texas cattle ranchers, the biggest suppliers in the world’s top beef-producing nation, will cull the most breeding cows ever this year as drought increases feed costs, driving livestock prices to a record.
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A prolonged drought from Kansas to Texas probably forced U.S. ranchers to sell more cattle to feedlots last month, signaling increased supplies for meat processors including Tyson Foods Inc. and lower beef prices.
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U.S. meat consumers are swapping premium steaks for cheaper ground beef as concern for high unemployment and slower economic growth forces families to trim their food budgets, according to industry researcher CattleFax.
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