April 11, 2008

USDA raises meat production forecast

The USDA raised its meat production forecast for 2008, with higher beef and pork output expected enough to offset the predicted decrease in broiler production.

Production of beef was increased on continued strong cow slaughter and on higher-than-expected cattle weights.

Beef export forecasts for this year were decreased due to slow exports to both North America and Asia markets.

Pork production forecasts were raised as USDA's March 28 Quarterly Hogs and Pigs report showed large hog inventories, upwardly revised pig crops for second half 2007, and pointed to a relatively large pig crop in the first half of 2008.

Poultry production was lower as hatchery data indicate a slowdown in production and higher grain prices are expected to affect growth later this year.