Slow Growth Forecast for U.S. Meat Industry

WASHINGTON - May 12/06 - SNS -- Total U.S. meat production in 2007 is projected to grow at a considerably slower rate than expected for 2006, according to updated supply and demand forecasts by the USDA's World Agricultural Outlook Board.

Beef, pork, broiler meat, and turkey are each forecast to increase around 2% next year. As cattle producers expand herds, growth in feedlot supplies and slaughter is expected to slow. In addition, after strong gains in cattle carcass weights in 2005 and 2006, weight gains are expected to be smaller next year.

The pig crop in 2007 will expand slowly, and carcass weights will continue to rise gradually. Hog slaughter is expected to continue to be complemented by increasing imports of Canadian feeder pigs for finishing and slaughter in the United States.

Broiler expansion in 2007 is forecast to slow as strong production gains, rising feed prices, and weaker 2006 prices result in moderate output next year. Turkey and egg production is forecast slightly higher.

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