U.S. Cattle & Hogs Production Update – Apr ’16
According to USDA, U.S. commercial red meat production totaled 4.26 billion pounds in Mar ’16, finishing up 0.4% MOM and 0.6% YOY when normalized for slaughter days. Total red meat production has increased on a YOY basis for seven consecutive months through March. The MOM increase in total red meat production of 0.4% was consistent with the ten year average February – March seasonal decline. ’15-’16 YTD U.S. red meat production is up 2.4% YOY throughout the first half of the production season. Pork – Production Declines on a YOY Basis for the Second Consecutive Month Mar ’16 U.S. pork production of 2.15 billion pounds declined 1.4% MOM and 2.5% YOY when normalized for slaughter days. The monthly YOY decline in pork production was the second experienced in a row and the largest decline on a percentage basis experienced in the past 16 months. Mar ’16 total hogs slaughtered declined 2.0% YOY while average weight/head declined 0.4% YOY. Despite the YOY decline, Mar ’16 pork production remained at the second highest figure on record for the month of March. ’14-’15 annual U.S. pork production finished up 4.6% YOY, which was a seven year high on a percentage basis. ’15-’16 YTD U.S. pork production remains up an additional 2.6% YOY throughout the first half of the production season, despite the most recent YOY declines. Beef – Production Remains Higher on YOY Basis for the Fifth Consecutive Month Mar ’16 U.S. beef production of 2.10 billion pounds declined 2.3% MOM and 4.1% higher on a YOY when normalized for slaughter days. The YOY increase was the largest experienced in over three years on a percentage basis. U.S. beef production has increased on a YOY basis for five consecutive months through March. Mar ’16 total number of cattle slaughtered increased by 2.1% YOY while average weights/head finished 1.7% above the previous year. ’14-’15 annual U.S. beef production finished down 4.7% YOY however ’15-’16 YTD U.S. beef production has gained back a portion of the losses, finishing 2.4% higher on a YOY basis through the first half of the production season.