January 13, 2005

U.S. Expects More Meat Production in 2005

Total U.S. meat production is expected to increase above earlier ideas in 2005 despite slowing growth in the hog sector and forecasts of a smaller poultry meat harvest, according to the latest forecasts developed by the USDA's World Agricultural Outlook Board.

In releasing its projections, the USDA stressed, "Due to uncertainties regarding the length of the bans on trade in ruminants and ruminant products because of the discovery of BSE in the United States and Canada, forecasts for 2005 assume a continuation of policies currently in place, including the recently announced minimal risk rule. Subsequent forecasts will reflect any announced changes."

Increased beef production is behind the larger meat output numbers. It was raised in response to changes in USDA regulations which will allow imports of under-30-month-old cattle from Canada starting March 7.

As a result of the rule, imports of slaughter cattle under 30 months of age and feeder cattle are expected to lead to higher levels of slaughter and beef production. Beef production for 2005 is projected at 26 billion pounds, 6% above last year and about 1.25 billion pounds above last month.