CoBank: meat production in the U.S. should move between 3% and 5% in 2018 and 2019

New York, 27/9 – the production of beef in the United States must keep positive and forward rate between 3% and 5% in 2018 and 2019, following the expansion of the herd in the past two years, according to a report released on Tuesday, 26, by the American financial cooperative CoBank. The scenario is supported by the high profitability and the years of good pasture conditions.
The United States Department of agriculture (USDA) estimates that the production of calves in 2017 must be more than 36 million head, up 2.9% compared to 8.3% above the 2016 and low supply cycle from 2014.
"The growth of the herd that witnessed between 2014 and 2017 has been the most aggressive ever recorded," said Trevor Amen, Chief Economist of the animal protein in CoBank. "The recent slaughter numbers indicate that the growth rate is slowing, but excluding any significant interruptions in exports or weather events, the expansion will continue until the end of the Decade," he said.
The expert also noted that domestic consumption should continue in the spotlight. The demand, which surprised the expectations in 2017, and exports have been identified as essential to maintain the balance of supply and demand balanced and support the prices, showed the report. "Exporting is heading to climb between 7% and 9% in 2017 and between 5% and 7% in 2018".
Slaughter capacity
The slaughter capacity currently available in the United States should be sufficient to support the expected growth in the volume of cattle ready within the next two years. The time of slaughter on Saturdays has increasing since mid-2016. However, the document pointed out that it is unlikely that businesses reopen closed units or construct additional facilities.