Record Production Expected in Beef, Pork, and Broilers

ARLINGTON, VA – Last week, World Ag Outlook Board livestock analyst Shayle Shagam announced that red meat and poultry production in the United States is forecast to increase. Speaking at USDA’s annual Agricultural Outlook Forum, Shagam said the more than 3 percent increase would be driven by record production of beef, pork and broiler meat (108.8 billion pounds). Last year, total red meat and poultry production increased to a record 105.2 billion pounds, the fifth consecutive year of increase. With record production levels, cattle and broiler prices declined in 2019. Hog prices, on the other hand, increased despite higher production as strong packer demand, supported by increased slaughter capacity and export growth underpinned hog markets. After experiencing sharply lower prices two years ago, turkey producers curbed production. As turkey supplies were reduced in 2019, prices moved higher. Although turkey production is expected to increase for the first time in 3 years, it will remain below its recent peak. For 2020, fed steer prices are forecast to remain fairly stable as production growth slows. Hog prices will increase despite relatively large gains in production as an increasing proportion of U.S. pork enters international markets. Broiler prices are expected to decline as the expected increase in production pressures prices. Turkey prices will be higher in 2020 as producers continue to balance supply and demand. USDA also expects exports of all major meats to increase this year.