Slaughter data shows rebound under way
The Animal Slaughtering and Processing Production Index 12-month moving average rose continuously through the first three quarters of 2015 and is up 1.9 percent on a year-over-year basis. The quarterly trends, as well as strong overall Food Production, suggest further acceleration going forward.
Meat producers are ramping up production within the U.S. in response to a 1.9 percent increase in Personal Consumption Expenditures for Meat and Poultry over the past 12 months, driving much of the overall growth for the slaughtering and processing industry. Growth in the quarterly data supports the ongoing rise in the annual trend into 2016. There is also strong growth in pork production, up 4.5 percent over the last 12 months through August. Pork production likely will rise in the coming months due to increasing prices for substitutes such as beef. Conversely, beef production is down 4.4 percent from last year and will offer limited support for Slaughtering and Processing Production. Poultry production is up 4.4 percent from one year ago, but growth is slowing.