January 14, 2005

World Beef Forecast Higher On Import Expectations

Despite uncertainties over trade between the United States and Canada, the U.S. Department of Agriculture's World Agriculture Outlook Board (WAOB) has upped its forecast for worldwide beef production in 2005.

The report released by the WAOB on Wednesday, predicts 26 billion pounds of beef will be produced this year. That estimate is 6 percent higher than last year¡¯s total and 1.25 million pounds larger than the December forecast.

A notice included in the published report advises that the board's findings are based on the assumption that the U.S. border will be reopened to Canadian cattle. The report cites the USDA rule published earlier this month that would restart live cattle imports from Canada on March 7. WAOB members credit the production boost to the expectation that live cattle imports will expand the amount of slaughter in the U.S.

Cattle prices were forecast lower for 2005, on the planned imports from Canada. Hog prices were also lowered in the most recent report while broiler and egg prices remained the same as last months figures.