August 8, 2005

USDA: Disease-related trade restrictions shaped animal product markets in 2004 and affected 2005 forecasts

Disease outbreaks and related trade restrictions that affected U.S. animal product markets and exports in 2003 continued to constrain markets in 2004. U.S. cattle and beef markets were most affected.

Pork, dairy, and lamb markets did not face any direct disease issues but both U.S. and international outbreaks of Avian Influenza buffeted poultry markets.

Forecasts of 2005 U.S. animal-products trade reflect expected market responses, given the uncertainties surrounding cattle and beef markets in the United States.

Brazil has emerged as a significant competitor of the United States in international poultry markets and as a major player in international beef markets. Exchange rate movements that weakened the dollar relative to key currencies also affect international animal-product markets.

The outlook for the U.S. meat, poultry, and dairy markets in 2005 relies on assessments of domestic production, the continuing effects of disease and trade restrictions on exports to major trading partners, the role of "new" animal product suppliers, and currency exchange relationships. 

For the full USDA report, click here.