USDA lowers forecast for red meat and poultry production

According to the latest U.S. Department of Agriculture (USDA) World Agricultural Supply and Demand Estimates (WASDE) report, 2021 red MEAT, poultry and egg production estimates have been adjusted to reflect December production data.

The forecast for total red meat and poultry production for 2022 is slightly lower than last month as a higher forecast for beef production is more than offset by lower pork, broiler and turkey production. The forecast for beef production is raised from the previous month, as the larger expected volumes of livestock for fattening in the first half of 2022 are realized in the second half of the year. However, the increase in the slaughter of fattened cattle is partly offset by a decrease in the slaughter of lean cattle. Pork production is declining amid slower slaughter rates. Broiler and turkey production forecasts are downgraded due to current hatchery data and higher expected feed costs. Egg production forecast is down from last month as it is expected to

 Beef import forecast raised for 2022 due to strong demand; the EXPORT forecast has not changed. Pork exports are falling due to continued weakness in demand from CHINA and increased competition in other markets. The forecast for broiler exports has been lowered due to lower demand in several Asian markets. The forecast for turkey exports is lowered compared to last month due to a general decline in demand.

The forecast for cattle prices has been raised for the second half of the year due to strong demand from meat processors. Price forecasts for pigs, broilers, turkeys and eggs are raised due to current prices and slower production growth expected during the year. Egg prices are also rising due to current prices and slower production growth.