August 8, 2011

US meat stocks increase 12% on-year

US beef, pork and poultry cold storage inventories rose 12% on-year at 2.2 billion pounds (997,903 tonnes) at the end of June, and 2% above the five-year average, according to data recently released by the USDA.

Boneless beef stocks, at 377 million pounds (171,004 tonnes), were 21% above the same period in 2010 and 4% higher than the five-year average. Contributing to the higher inventory levels has been a 2% increase in production across all cattle categories in the US during May and June, as the severe southern drought conditions continue.

Similarly, cold storage inventories of pork in the US have also lifted 20% on-year ago levels, to 497 million pounds (225,435 tonnes), as pork production levels during May increased 9% on-year.

Regardless of increased beef and pork supplies, US wholesale price indicators for boxed beef Choice and pork cut-out composite over the past two months (June and July) have lifted on-year and on-month. Driving part of the increase has been strong demand for US meat products abroad, whereby US beef and pork exports so far this year (January to May) have risen 27% and 17%, respectively, on 2010.

Poultry inventories as at the end of June also increased 8% on-year, to 1.3 billion pounds (589,670 tonnes), as US poultry production over May and June lifted 6% on-year ago levels. Contrary to beef and pork though, US wholesale broiler prices have been down on-year for much of 2011.