Demand growth projected to support recovery of the U.S. livestock sector
The U.S. livestock sector is slowly recovering from high feed prices and drought in the Southern Plains of the United States over the last few years. Improving returns have provided incentives for increased production in the livestock sector. As a result, total U.S. red meat and poultry production is projected to grow over the next decade. Low cow inventories are expected to limit recovery from recent drought conditions for several years and reduce beef production through 2016, but production is projected to grow in the longer term as returns support continued herd expansion and higher slaughter weights.