US beef and chicken demand drops; pork buoyant

US consumer beef and chicken demand have suffered for the first nine months of 2009, but pork painted a different picture with increased demand.

US beef demand fell 2.3 percent on-year during the period, while beef prices was pushed down by the recession and competitive prices for other meat, particularly pork.

If beef demand continues to drop for the rest of 2009, the beef demand index will reach it lowest level since 1999, according to the CME Daily Livestock Report.

Chicken demand in the US fell 2.9 percent on-year during the nine-month period. Chicken prices are likely to be three-percent lower this year compared with 2008, with prices expected to average 10-percent to 12-percent lower year-on-year in November and December, according to the Steiner Consulting Group.

Chicken breast prices were lower than the five-year average, mainly due to poor demand in the foodservice sector. In contrast, chicken wings performed strongly in 2009, with the foodservice sector reporting robust demand. Wing prices exceeded chicken breast prices for much of the year, reaching a record high of US$1.67 per pound in October.

Pork consumer demand increased four percent in the first nine months of 2009. The pork cutout is expected to average 57.15 cents per pound this year, down 17.4 percent on the average in 2008.

Meat prices are expected to rebound in 2010 on the back of expectations of higher corn prices, reduced supplies and increased exports. Beef imports are seen to remain stagnant while pork imports will decline.

Choice beef cutout prices are expected to average 11.6-percent higher in 2010 year-on year, while pork prices are predicted to rise 37.4 percent to average 79 cents per pound. Broiler prices are forecast to rise 6.5 percent in 2010 year-on-year.