US beef production skid to continue through 2015

US beef production will continue to fall next year, keeping prices high as it can't keep up with demand, cattle market analysts said.

Kevin Good, senior analyst of CattleFax, however, predicted that pork and poultry production would both be up about 5% next year. "Even though beef supplies will be thinner in 2015, total meat supplies will be more in 2015," Good told the recent Idaho Cattle Association annual convention. 

The national cattle herd has been declining through the years and has been at its lowest level since 1951. Good said that during 15 of the past 17 years, the nation's cattle producers have liquidated herds and that years of declining herds and lower feed costs have contributed to strong profits.

According to the US Department of Agriculture, total beef production in 2015 is estimated at 23.7 billion lbs, down from 24.5 billion lbs this year and falling behind expected consumption of 23.9 billion lbs. The forecast beef consumption for 2015 is down from this year's 24.8 billion lbs. as high prices curb spending.

"In the short term, beef demand is weaker because consumers are feeling sticker shock and looking at other proteins," said Mike Martin, spokesman for meat producer Cargill Inc, according to a Reuters report.

The USDA on Tuesday forecast that beef prices would climb 5% in 2015, up from its forecast of 3.5 percent a month ago.