Beef production could see a decline next year, but pork production should boost
As U.S. beef prices continue to climb, production is likely to fall for the second year in a row.
The USDA Outlook Board estimates it will drop by 2 billion pounds in 2023, which is driving up prices. The projected average cost for steers this year is $141 per hundredweight, and that number will only increase next year with USDA predicting another 8.5 percent rise in 2023. We will learn more later this week when the USDA Cattle Inventory Report comes out on Friday.
How does it look for hogs? U.S. pork producers are cautiously reducing output this year, but USDA Outlook Board Chairman, Mark Jekanowski says it is going to get a boost.
“Up by 360 million pounds to 27.5 billion pounds of pork for 2023, and that is driven by the data that came out of the recent hogs and pigs report. It suggests increased farrowing intention in the second half of 2022, so those are hogs that will likely be available for slaughter into 2023,” says Jekanowski.
With higher supply and stable demand, prices will drop, with USDA estimating they will go down $1 per hundredweight.