Meat Output Contracts in U.S.

WASHINGTON - Jul 12/06 - SNS -- Forecast total U.S. meat production is reduced for both 2006 and 2007, according to the latest estimates from the USDA's World Agricultural Outlook Board.

The decline primarily reflects expectations of slower growth in broiler meat output through 2007. Forecast pork production is reduced fractionally for 2006 mainly because hog slaughter in the second quarter was lower than expected. The June 30 Quarterly Hogs and Pigs report confirmed that the hog sector is expanding gradually.

The beef production forecast for 2006 is raised fractionally because of increased cow slaughter. USDA's July 21 Cattle inventory report will provide an indication of producer plans for the cattle sector in light of current dry conditions.

Beef export forecasts for 2006 and 2007 are raised from last month. Exports to North American markets are strong and expected to remain so into 2007. Beef imports for 2006 are reduced as shipments to date have been below expectations.

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