Source: Chris Scott, MEATINGPLACE, 1/24/17



Poultry production figures for the end of 2016 came in lower than anticipated, although early 2017 numbers are projecting slightly higher, according to the latest USDA outlook report on proteins.

Preliminary broiler production was slightly lower in December than previously forecast, which pulled down the estimate for the final quarter of last year by 25 million pounds, USDA said. The report noted that broiler exports also were lower than expected in November, which coincided with the broad trade-weighted index for the U.S. dollar reached its highest levels and may have affected slower-than-expected export growth, USDA reported.

The study said the export forecast for broilers in 2017 remains unchanged for now as the effect on demand stemming from Europe and Asia’s avian influenza outbreaks since November of 2016 become clearer.

Meanwhile, preliminary turkey production data also was 10 million pounds lower than expected in the fourth quarter, USDA said. Turkey stocks in cold storage at the end of the year increased to 245 million pounds following higher-than-expected stocks at the end of November. USDA noted that the year-end figure for turkey stocks is the highest at the end of a calendar year since 2012.

USDA also raised its forecast for turkey stocks at the end of 2017 to 275 million pounds. Weaker demand is expected to pressure turkey prices to decline in 2017, averaging between 105 and 113 cents per pound. Turkey prices averaged 109 cents per pound during 2016, the report said.

For more stories, go to www.meatingplace.com.