Less US livestock in 2009

Total meat production for 2008 has been at record levels but, due to higher
feed costs, less livestock is being produced. Overall, chicken production is
expected to be down 4 to 5 percent from 2008 to 2009 and then up 1 percent again
in 2010. Turkey production is expected to be down 3 to 4 percent from 2008 to
2009 and down again 1 percent in 2010.

Pigs
The pig
industry has had a tough go since October 2007 and it looks like they will
probably be in the red ink through May 2009,” said State University livestock
economist John Lawrence. Exports continue to carry the pig market, with exports
up 69 percent from January to August.

Cattle
“Overall, a weak economy and a strong dollar
are bad news for beef demand,” said Lawrence. “People are willing to give up
some things when money is tight and go out to eat less or buy cheaper protein
sources.” Lawrence expects generally lower cattle supplies in 2009, 2010 and
likely beyond. “I expect a reduction of supplies in 2011 and 2012, also.

The increase of ethanol plants has also led to an increase in feed
products available to cattle producers. Lawrence thinks this may cause a shift
of cattle feeding back to the northern Midwestern states, as more feed is
available.