Meat, Poultry Producers Keep Cutting Back, but is it Enough?
A review of the livestock market shows farmers are raising less, but production is leveling off.
Compiled by staff
Published: Jul 6, 2009
Midway through 2009 and livestock and poultry producers are still raising less than a year ago, but market observers note that reductions in production have been leveling off. This could be a troubling development, according to a report from the Chicago Mercantile Exchange.
Through the week ending June 27, 24.2 billion pounds of red meat has been produced, which is a 1.9% drop from the same period in 2008. Beef production remains down about 2.3% for the year, while pork production is off by 1.7%, according to CME. However, weekly red meat totals have been closer to year-ago levels since mid-May and red meat output has been significantly higher than the average for the period from 2003 through 2007. Pork production is pushing the numbers higher in the trend with output 12.% higher than the '03-'07 average. Beef production is 2.9% larger than the long-term average.
That rising pork number has been hit with fewer Canadian pigs in the market and a smaller breeding herd. That shows the productivity increases the industry is hitting, but that could also put a lot of economic pressure on pork producers. Operating losses in both the beef and pork sectors still point to needed output reductions if profits are to return, even with lower grain prices.
Poultry numbers show that output is about 6.1% lower than last year, but production there is also creeping back up.
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Tagged: poultry producers
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