Meat Production Contracting in U.S.

WASHINGTON - Aug 11/06 - SNS -- Meat production in the United States is starting to contract, according to the latest supply and demand outlook developed by the USDA's World Agricultural Outlook Board.

As a result, the USDA expects production to be smaller than expected in both 2006 and 2007. Pork production in 2006 is forecast lower in the third quarter due to lower-than-expected slaughter in July and August. In 2007, production is reduced because of lower forecast imports of hogs from Canada.

Beef production is raised as price premiums for Choice grade beef encourage fed cattle to be marketed at heavier weights. Although the pace of placements in feedlots reflect poor forage conditions, cattle are remaining in feedlots longer. USDA's July 21 Cattle report indicated that cattle inventory is expanding quite slowly.

Poultry production is raised, reflecting reported second-quarter slaughter but subsequent quarter forecasts are unchanged. The rate of growth in egg production is reduced from last month.

Subscribers can read the full text of the article by Clicking here