Red Meat Production Rising, Poultry Easing

WASHINGTON - Apr 9/08 - SNS -- The forecast for total 2008 U.S. meat production is raised as higher expected beef and pork production more than offset lower forecast broiler production, according to the latest supply and demand update from the USDA's World Agricultural Outlook Board.

Beef production is increased due to continued strong cow slaughter and higher-than-expected cattle weights. Pork production forecasts are raised as USDA's Quarterly Hogs and Pigs report, released on March 28, indicated large hog inventories on March 1, upwardly revised pig crops for second half 2007, and pointed to a relatively large pig crop in the first half of 2008. Although this implies larger slaughter in 2008, increased forecast corn prices are expected to limit hog weights.

Poultry production forecasts are reduced as hatchery data point to a slowdown in production and higher grain prices are expected to affect growth later in the year. Turkey production is increased slightly as early gains in the first part of the year offset expected slower growth in the second half. Egg production is raised slightly for 2008 as the industry responds to continued high egg prices.

Beef import forecasts for 2008 are lowered from last month as high domestic cow slaughter reduces the demand for imported processing beef. Pork imports are unchanged from last month. Beef export forecasts for 2008 are lowered due to slow exports to both North America and Asia markets. Pork and broiler export forecasts for 2008 are unchanged.

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