US broiler meat production seen to increase in Q4

US broiler meat production during the fourth quarter is expected to increase one percent on-year to 8.95 billion pounds, marking the first year-on-year increase in the last five quarters, according to the USDA.

This increase is expected to be driven by a small increase in the number of birds slaughtered and a slight increase in average live weights.

Production during the third quarter dropped three percent on-year to 9.17 billion pounds, mostly due to a smaller number of birds being slaughtered as the average weights were nearly identical to the previous year.

In 2010, broiler meat production is expected to increase only 1.3 percent to 36.1 billion pounds, as lower prices for corn and soymeal are expected to be offset by little growth in real disposable income and continued high unemployment.

Ending cold storage stocks totalled 615 million pounds, down 16 percent from the previous year and down 17 million pounds from the previous quarter due to lower production during the third quarter and strong exports.

Broiler exports in September totalled 580 million pounds, down sharply from the previous year but similar to volumes in July and August. September sales were mostly driven by strong shipments to Mexico and the combined China/Hong Kong market.

During the third quarter of 2009, broiler shipments totalled 1.719 billion pounds, down 11 percent from last year's record exports, but up 64 million pounds from the second quarter and was stronger than originally expected.