U.S. Red Meat, Poultry Stocks Tighten

U.S. red meat and poultry stocks at the start of the month were below year ago levels.

The USDA says the red meat total on May 1^st of 893.577 million pounds was down 6% on the year, with a 2% decrease for beef to 418.147 million pounds due in part to lower production in April and a 9% decline in pork at 455.803 million pounds, at least partially because of lower demand.

The poultry total of 1.076 billion pounds was 5% less than last year, as a 2% rise in chicken to 775.327 million pounds was more than canceled out by an 18% drop in turkey at 318.783 million pounds, with monthly production and demand differences impacting both.

The USDA’s updated annual supply, demand, and production numbers for red meat and poultry will be released on June 12^th.

EDITOR’S TAKE:

Ok, what do all these numbers mean? It appears that chicken production is recovering the most, but other meat supplies are lagging. Generally speaking, supplies are tight and prices at both the producer and consumer levels are likely to remain higher for the time being. As we have stated in prior issues of the AIR, rebuilding production levels takes time, especially for beef. We will be anxious to see the updated numbers for supply and demand when available in June.

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