November 18, 2005

2006 global trade in beef, pork, poultry to hit record levels

Despite continued disease outbreaks and their resulting trade restrictions, global trade of beef, pork, and poultry will reach record levels in 2006, USDA's Foreign Agriculture Service predicted.

The agency said that broiler meat exports by major traders are likely to reach a record 7.5 million tonnes; poultry demand is expected to be strong due to the absence of the US in major beef markets and constraints on growth in Brazilian beef.

In 2004 and 2005, bird flu and BSE outbreaks caused trade distortions which affected the beef and poultry prices set by major exporters. As such, major exporters' pork prices increased in the last two years as consumers changed their animal protein consumption, thus upping pork demand.

World economic growth is expected to remain strong in 2006, with growth rates at about the same level as 2005. The likely positive economic environment will result in investments to improve meat production and processing capacities in many major livestock and poultry producing countries, FAS said.

FAS also predicted that FMD in Brazil will have minimal impact on current meat trade, as the country will just shift the beef production to FMD-free states to meet export demand--particularly to Russia--in 2006.