Executive Summary U.S. cattle & hog production figures provided by the USDA were recently updated with values spanning through Dec ’20. Highlights from the updated report include:

• Dec ’20 U.S. commercial red meat production declined 1.6% on a YOY basis, finishing lower for the first time in the past seven months.
• U.S. pork production declined 1.5% on a YOY basis throughout Dec ’20, finishing lower for just the second time in the past seven months. A 3.5% YOY decline in the total number of hogs slaughtered more than offset a 2.1% YOY increase in average weights per head throughout the month.
• U.S. beef production declined 1.6% on a YOY basis throughout Dec ’20, finishing lower for the first time in the past six months. A 3.1% YOY decline in the total number of cattle slaughtered more than offset a 1.2% YOY increase in average weights per head throughout the month.

Additional Report Details Total Red Meat – Production Declines YOY for the First Time in Seven Months, Finishes Down 1.6% According to the USDA, Dec ’20 U.S. commercial red meat declined seasonally from the record high level experienced throughout the previous month while finishing 1.6% lower on a YOY basis when normalizing for slaughter days. The YOY decline in total red meat production was the first experienced throughout the past seven months. The month-over-month decline in total red meat production of 5.0% was slightly larger than the ten year average November – December seasonal decline of 3.7%. ’19-’20 annual red meat production finished 1.5% higher on a YOY basis, reaching a record high level for the fourth consecutive year. ’20-’21 YTD red meat production has increased by an additional 0.6% on a YOY basis throughout the first quarter of the production season, despite the most recent decline. Total 12-month rolling average red meat production remained above trendline for the 40^th consecutive month throughout Dec ’20, although the most recent deviation from trendline remained significantly below the record high level experienced throughout Mar ’20. Pork – Production Declines YOY for Just the Second Time in Seven Months, Finishes Down 1.5% Dec ’20 U.S. pork production declined seasonally from the record high level experienced throughout the previous month while finishing 1.5% lower on a YOY basis when normalizing for slaughter days. The YOY decline in pork production was just the second experienced throughout the past seven months and the largest experienced throughout the seven month period. The Dec ’20 total number of hogs slaughtered declined 3.5% YOY throughout the month, more than offsetting a 2.1% YOY increase in average weights per head. The month-over-month decline in pork production of 4.3% was slightly larger than the ten year average October – December seasonal decline of 2.7%. ’19-’20 annual pork production finished 3.3% higher on a YOY basis, reaching a record high level for the sixth consecutive year. ’20-’21 YTD pork production has increased by an additional 0.5% on a YOY basis throughout the first quarter of the production season, despite the most recent decline. Beef – Production Declines YOY for the First Time in Six Months, Finishes Down 1.6% Dec ’20 U.S. beef production declined seasonally from the previous month while finishing 1.6% lower on a YOY basis when normalizing for slaughter days. The YOY decline in beef production was the first experienced throughout the past six months. The Dec ’20 total number of cattle slaughter declined 3.1% YOY throughout the month, more than offsetting a 1.2% YOY increase in average weights per head. The month-over-month decline in beef production of 5.8% was slightly larger than the ten year average October – December seasonal decline of 4.6%. ’19-’20 annual beef production declined 0.2% on a YOY basis from the 16 year high level experienced throughout the previous production season. ’20-’21 YTD beef production has rebounded by 0.8% on a YOY basis throughout the first quarter of the production season, however, despite the most recent decline.