Poultry production estimates downgraded in US

USDA earlier this week revised downward its estimate for 2009 broiler production to 35.8 billion pounds, a decline of 3.1 percent from a year earlier, after fewer birds were slaughtered in January.

Broiler meat production for January was 2.87 billion pounds, down 11.3 percent from the previous year, USDA said.

The agency expects lower production for February and March as well, estimating first-quarter production will fall 5.7 percent to 8.63 billion pounds from the same period a year ago. Average weights of the birds are expected to change very little.

Broiler meat production estimates for the second through fourth quarters were lowered to reflect weekly chick placement numbers that are trending well below the previous year, reducing the number of birds that will be available for slaughter, USDA said.

Falling demand for meat has resulted in lower prices for most broiler products, with prices for most breast meat products down from the previous year, USDA said. U.S. per-capita broiler meat consumption is at its lowest level since the first quarter of 2003.

Strong exports to taper off

However, broiler export shipments rose 33 percent in January from a year ago, reflecting greater demand from Russia, China and Mexico. The export demand was reflected in wholesale prices for leg quarters remaining around 35 cents per pound, USDA said.

"The strength in broiler exports, even with a worldwide economic downturn, may be due to chicken’s relatively low prices compared with beef and pork products," the agency said.

But weak economic conditions and a lower import quota in Russia will take a toll on export demand, with USDA forecasting total 2009 U.S. broiler exports will fall 13 percent to 6.05 billion pounds from 2008’s record level.