High-Path Avian Flu has been confirmed in more than 1,000 herds across 17 states. While it spreads easily in cow udders, researchers have found no signs that it is adapting to humans.
The virus seems to thrive on receptors in cow mammary glands that are similar to those in birds. Most cows recover after a couple of weeks, but the outbreak is still putting a major financial strain on producers.
One estimate from an ag economist suggests a dairy cow 2,500 cows in quarantine could lose half a million dollars a day due to treatment costs, labor, and lost production.
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Shrinking slaughter capacity may delay heifer retention, complicating herd rebuilding plans.
Smaller cow numbers and a declining calf crop point to prolonged tight cattle supplies, limiting near-term herd rebuilding potential.
The federal government’s status is far from the only factor moving the markets on Friday. Two critical reports released today on producer inflation and the status of the U.S. cattle herd are also top of mind.
Record milk output looks strong today, but shrinking replacement numbers mean future supply adjustments could be faster and more volatile.
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