Cutbacks in meat and poultry production may not be enough to return the industries to profit according to a report released by the Chicago Mercantile Exchange. Statistics show producers cutting back from a year ago but also that the cutbacks are leveling out.
Poultry production has been cut by about 1.6% compared to ast year but production is beginning to go back up.
Pork production is off by 1.7% compared with the same period last year. Pork output was 12% higher than the 2003-2007 average.
Beef production has been down 2.3% for the year. Weekly red meat totals, however, have been almost level to 2008 figures since mid-May. Beef production is 2.9% higher than the long-term average.
Operating losses in both the beef and pork sectors show that further reduction in output is necessary for profits to return.
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