Marginal Increase in U.S. Meat Output

WASHINGTON - Feb 9/07 - SNS -- Total U.S. meat production for 2006 is reduced fractionally from last month based on lower estimated fourth quarter slaughter, according to the latest supply and demand forecasts from the USDA's World Agricultural Outlook Board.

Forecast meat production for 2007 is lowered from last month mainly due to smaller beef and broiler output. The recent Cattle report indicated that there was little expansion of the cattle herd in 2006.

Total cattle inventory was slightly higher on January 1, 2007, but the 2006 inventory was revised down. The 2006 calf crop was fractionally below the previous year.

Assuming pasture conditions improve in the spring, relatively high grain prices will encourage cattle to remain on grass longer and slow feedlot placements. Thus, beef production forecasts for later in the year are reduced.

Pork production forecasts are unchanged from last month. Broiler production for 2007 is reduced throughout the year.

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