U.S. Meat Output Downtrend

WASHINGTON - Jun 10/08 - SNS -- Total U.S. meat production for both 2008 and 2009 is projected lower than last month as higher feed prices weigh on the sector, according to the latest forecasts from the USDA's World Agricultural Outlook Board.

Beef production is forecast higher in 2008 as cow slaughter forecasts are raised, more than offsetting lower forecast steer and heifer slaughter. Beef carcass weights are unchanged despite higher feed prices as producers are expected to place cattle into feedlots at heavier weights. Beef production forecasts for 2009 are unchanged from last month.

Pork production forecasts for 2008 and 2009 are lowered from last month. Imports of hogs from Canada are forecast lower as production in that country declines. Carcass weights in both years are forecast slightly lower than last month as high feed prices are expected to encourage producers to market hogs as rapidly as possible. USDA will publish its Quarterly Hogs and Pigs report on June 27, providing information on producer farrowing intentions in the coming quarters.

The broiler production forecast for 2008 is unchanged from last month, but the forecast for 2009 is reduced in the last half of the year as higher forecast feed prices slow output growth. Turkey production forecasts for 2008 and 2009 are unchanged from last month. Egg production in 2008 is forecast slightly lower than last month, but 2009 forecasts are unchanged.

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