Broiler production next year is forecast by USDA to be 36.109 billion pounds, 594 million pounds less than its forecast last month and 1.3 percent under the 36.571 billion pounds now forecast for 2012, according to the Department’s World Agricultural Supply and Demand Estimates report today. “Higher feed prices” are expected by Department analysts to pressure net margins for all red meat and poultry production. Broiler exports for next year were also reduced with the outlook now for 6.950 billion pounds, 175 million pounds less than last month’s forecast and 1.8 percent below the 7.078 billion pounds now forecast for 2012. If this year’s broiler exports are 7.078 billion pounds, it would be 1.5 percent above the 6.971 billion pounds exported in 2011.
Despite the reduced forecast for production, the Board sees little improvement in broiler prices for next year. Today’s report has the wholesale, 12-city average broiler price for 2013 being between 84-90 cents per pound, little changed from last month’s forecast of 83-90 cents per pound. For 2012 USDA lowered the comparable price range from 84-86 cents per pound to this month’s estimate of 82-84 cents per pound.
For beef production when compared with last month’s report the Board slightly increased its outlook this month to 24.671 billion pounds, but down 3.9 percent from the 25.679 billion pounds now seen for this year. Pork production was also reduced for next year with 22.962 billion pounds likely or 1.2 percent under the 23.249 billion pounds expected this year.
For total combined red meat and poultry production, the Board forecasts 90.253 billion pounds, 1.450 billion pounds less than last month’s forecast and 2.1 percent less than the 92.194 billion pounds now seen for 2012.
