We have a better understanding on both food costs estimates and the livestock forecast
The Treasury Secretary has wrapped up talks with global leaders about a food crisis compounded by the war in Ukraine and the new estimates on food costs are shocking.
The International Monetary Fund predicts that the cost of food will increase 14 percent globally this year, and well into 2023. The World Bank warns that the impact will be felt most by poor nations because they spend most of their income on nutrition. They also rely heavily on food and energy imports.
Treasury Secretary Janet Yellen warned that food insecurity has serious economic, social, and political implications. She pledged U.S. support in offsetting the impact of a food crisis.
We are starting to get a more detailed look at USDA’s latest livestock and poultry forecast for the month. The World Outlook Chair Board Chair breaks down the details.
According to Mark Jekanowski, “We raised our beef production forecast by 140 million pounds to 227.7 billion pounds, and that’s up 140 million... Severe drought conditions, especially in the U.S. plains, undermine pasture conditions... Supplies are likely to tighten because we’re really just pulling that cattle forward, slaughtering them out, and that’s what’s raising beef supplies... The hogs and pigs report that was released in late March, shows a pretty slow growth per litter, and raises some questions generally about the hog supply later this year and into next.”
Broiler and turkey production were both down, which is heavily reflected on bird culls due to HPAI.