Beef and Poultry Glut Appears to be Easing

Farm-Scape is sponsored by Manitoba Pork Council and Sask Pork Farm-Scape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council and Sask Pork.

Farm-Scape, Episode 2165

An official with Ontario Pork says it appears a glut of beef and poultry in cold storage that's been pressuring meat prices has started to ease.

Key factors expected to affect live hog prices in the coming months include demand for pork during barbecue season, US slaughter numbers, and the volume of meat in cold storage.

Ontario Pork sales team manager Patrick O'Neil says there's been an increase in frozen stocks of both poultry and beef.

"Definitely there's been an increase in frozen stocks of both poultry and beef supplies. Beef supplies are up 30 percent compared to a year ago based on the most recent data and chicken supplies are up 22 percent over a year ago.

But the most recent data we have for chicken supplies shows that, at the beginning of April, chicken supplies were actually slightly less than the month before so that's an indication that, despite the fact that chicken supplies are abundant compared to their historical level, they are no longer growing and the same is true for beef.

Beef supplies in cold storage are 30 percent more than the end of April last year but only one percent more than the end of March so we are seeing signs that these large storage levels are coming under control."

O'Neil notes the volume of frozen meat in storage was a really hot topic at the beginning of April when the wholesale price of pork was about 15 to 20 dollars lower than the same time last year.

However, he points out, in the last two months we've seen wholesale pork prices increase about 15 dollars per hundredweight US which means pork continues to move at good prices despite the increased competition from beef and poultry.

Staff Farmscape.Ca

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