Source:  Tom Johnston, MEATINGPLACE.COM, 8/20/09

Livestock inventories continue to shrink due to decreased demand, USDA said in its monthly Livestock, Dairy and Poultry Outlook.

In the beef sector, declining dairy cow numbers, no growth in dairy replacement heifer stocks and beef heifer inventories on the decline signal continuing liquidation of the national cow herd.

Meanwhile, the other-heifer category helped boost short-term beef supplies, but reduced replacement heifer inventories combined with increased short-term heifer beef and declining feedlot placements likely will lead to reduced beef supplies beyond 2009.

Beef exports were down slightly in the second quarter on weaker demand from Canada, Mexico and South Korea. The United States imported 14 percent more beef than it did in the year-ago period, primarily due to a rise in Australian and New Zealand exports. USDA projected beef imports will climb in 2009 and 2010.

Lackluster demand for pork has caused summer prices for hogs and pork cuts to continue to languish. Second-quarter pork exports fell 31 percent from their year-ago levels, thanks in large part to lower demand in Asia.

Poultry

Although broiler meat production fell sharply in the first half of 2009, it is expected to be only slightly lower in the second half of the year compared with the second half of 2008. That combined with lower exports suggest broiler ending stocks are increased for the third and fourth quarters of 2009.

Turkey meat production is expected to continue far lower than in last year's second half because poultry placements through the first half of 2009 have declined sharply compared with levels recorded during the same period last year.

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