There will be record-high supplies of meat and poultry in the United State – about 100 billion pounds - this year, predicts the U.S. Department of Agriculture, so prices will come down.
Fed steer prices are forecast to decline by seven per cent, hog prices by six per cent and broiler chicken prices are forecast to increase slightly.
“Domestic U.S. consumption can only grow so much given our projection of U.S. population and income growth,” said chief economist Robert Johansson.
“Furthermore, U.S. livestock can only eat so much feed, and alternative uses such as ethanol for the motor fuel pool are assumed to be relatively stable over the next 10 years. As a result, increases in beef, pork, poultry, dairy, feed and food grains, and oilseeds for the most part need to be sold abroad,” Johansson said.
Over the next 10 years, he says broiler exports will increase by about 20 percent, pork exports by about 22 percent and beef and veal exports by 37 percent.
This is despite Russia’s continued ban on imports of U.S. meat and relatively slow economic growth in a number of markets, he noted.
Broiler meat production is forecast to increase by two per cent to 41.53 billion pounds and turkey production by two per cent to a record 6.12 billion pounds.