U.S. Meat Production Rising

WASHINGTON - Feb 8/08 - SNS -- The forecast for total 2008 U.S. meat production is raised reflecting higher production forecasts for all major specie meats, according to the latest outlook from the USDA's World Agricultural Outlook Board.

Beef production is raised for 2008 due to stronger-than-expected cow slaughter. However, steer and heifer slaughter is forecast lower as the December 1 Cattle inventory report points to fractionally tighter supplies of cattle outside feedlots. Weights are reduced slightly due to higher cow slaughter and expectations that feedlot operators will move cattle through as quickly as possible.

Hog slaughter is forecast higher reflecting the current levels of slaughter and expectations of larger imports of live hogs from Canada. Poultry production forecasts are raised. Both broiler and turkey meat production in December were higher than expected. Current hatchery data point to continued expansion in 2008. Red meat and poultry production for 2007 is adjusted to reflect USDA estimates of December production. Egg production is reduced slightly for early 2008 as the industry has not responded as rapidly as expected to egg price increases.

Beef and pork import estimates for the last quarter of 2007 and forecasts for 2008 are lowered reflecting the slow pace of imports in November as a weak U.S. currency partly reduces incentives to ship products to the United States. In addition, imports are also lowered as relatively high domestic cow slaughter and increased imports of slaughter hogs from Canada weigh on imports. Beef export estimates for the last quarter of 2007 and the forecast for 2008 are lowered due to slower-than-expected exports. Pork export forecasts for 2008 are unchanged. Broiler export forecasts are raised as sales are expected to remain strong.

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