Total U.S. meat production forecasts for 2010 and 2011 are reduced slightly from last month. Beef production for 2010 is reduced on slightly lower estimated second quarter output and forecast lighter average carcass weights in the third quarter that more than offset slightly higher slaughter. For 2011, beef production is unchanged but is shifted between quarters as more cattle are expected to be marketed in the first part of the year. Pork production in late 2010 and 2011 is reduced on lower expected imports of live swine from Canada. Broiler meat and turkey production for 2010 reflects slightly higher estimated second quarter production. Forecast poultry meat production for the remainder of 2010 and 2011 is unchanged. Cattle, hog, and poultry prices are little changed from last month.
Beef imports are raised for 2010 based on the current pace of imports and weakening domestic cow slaughter. Export forecasts for beef, pork, and broilers are raised, partly reflecting strongrecent shipments. Stronger demand from a number of markets is expected to support higher exports through the remainder of this year and into next year.
Forecast milk production for 2010 and 2011 is raised from last month. Producers continue to add cows to the herd and the rate of growth in milk per cow has increased. Exports for 2010 and 2011 are raised sharply as June exports were strong, global supplies remain relatively tight, and demand in a number of markets is expected to support higher than previously forecast sales. However, sales in 2011 will be dampened by increased competition.
Strong demand for butter and cheese resulted in higher forecast prices for 2010 but the prices for nonfat dry milk (NDM) and whey are lowered from last month. The Class III price forecast for 2010 is raised as the higher cheese price more than offsets the lower whey price, but the Class IV price forecast is reduced as the lower NDM price more than offsets the higher butter price. For 2011, cheese, NDM, and whey price forecasts are reduced but butter is raised. For 2011, the Class III and Class IV price forecasts are lowered. The all milk price is forecast to average $15.90 to $16.10 per cwt for 2010 and $15.55 to $16.55 per cwt for 2011.