U.S. Cattle & Hogs Production Update – Feb ’16
According to USDA, U.S. commercial red meat production totaled 4.06 billion pounds in Jan ’16, down 5.1% MOM on a daily average basis from the 4.27 billion pounds produced in Dec ’15 and down 0.8% YOY from the 4.09 billion pounds produced in Jan ’15. The YOY decline in total red meat production was the largest experienced in the past eight months on a percentage basis. ’14-’15 annual U.S. red meat production finished up 0.3% YOY as a 5.2% increase in pork production more than offset a 4.2% decline in beef production. ’15-’16 YTD U.S. red meat production remains up an additional 2.4% YOY throughout the first third of the production season despite the YOY decline experienced during January. Pork – Production Declines on a YOY Basis for the First Time in 14 Months Jan ’16 U.S. pork production of 2.08 billion pounds declined 1.0% YOY and 5.6% MOM on a daily average basis to a three year low for the month of January. The YOY decline in pork production was the first experienced in the past 14 months. Jan ’16 total hogs slaughtered declined 0.2% YOY while average weight/head declined 0.7% YOY. ’14-’15 annual U.S. pork production finished up 5.2% YOY, which was a seven year high on a percentage basis. ’15-’16 YTD U.S. pork production remains up an additional 3.7% YOY throughout the first third of the production season, despite the most recent YOY decline. Beef – Production Declines to 11 Year Low for the Month of January Jan ’16 U.S. beef production of 1.95 billion pounds declined 0.5% YOY and 4.5% MOM on a daily average basis to an 11 year low for the month of January. Jan ’16 average weights/head increased 1.7% YOY however gains were more than offset by a 2.5% YOY decline in the total number of cattle slaughtered. Beef production had increased YOY for two consecutive months prior to the most recent decline but has finished lower on a YOY basis over 22 of the past 25 months. ’14-’15 annual U.S. beef production finished down 4.2% YOY however ’15-’16 YTD U.S. beef production remains up 1.0% YOY through the first third of the production season.