Beef, pork, broiler meat, and turkey are each forecast to increase around 2%
next year.
Broiler expansion in 2007 is forecast to slow as strong
production gains, rising feed prices, and weaker 2006 prices result in moderate
output next year. Turkey and egg production is forecast slightly
higher.
The World Agricultural Outlook Board forecasts meat
production for 2006 to rise slightly compared to last month, because of higher
expected beef output. The broiler production was raised slightly higher because
strong first-quarter output more than offset lower second-quarter output implied
by slowing chick placements.
Meat exports are forecast to increase in
2007, according to WASDE. Broiler exports are raised slightly because of
stronger-than expected first quarter shipments. The suspension and subsequent
reissuing of poultry import licenses by Russia did not change the 2006 broiler
forecast.
In 2007, beef and broiler prices are forecast higher than
2006, but hog and turkey prices are forecasted lower. Although 2007 broiler
supplies are forecast to increase, slower production growth and improved demand
are expected to support a modest price recovery. Turkey prices are forecast
lower as higher production begins to weigh on the market.
Broiler
prices are lowered on weaker parts prices. Turkey prices are increased due to
tight whole-bird supplies.
The full
report can be viewed at the USDA website.
