Average U.S. Animal Slaughtering and Processing Production during the 12 months through September was up 1.9 percent; however, the pace of growth has slowed since January. Slowing quarterly growth suggests the downward trend in the annual growth rate will persist into early 2017.
Slower growth trends in annual U.S. pork production (up 2.5 percent) and poultry production (up 1.2 percent) will hinder animal slaughtering and processing production through the end of 2016. In contrast, annual U.S. beef production is in an accelerating growth trend (up 4.1 percent), providing upward momentum to animal slaughtering and processing production. The U.S. Grain Producer Price Index has declined since June on an annual basis, down 8.9 percent, which should lower feed prices for animals. However, the Prepared Animal Feeds Producers Price Index is in a recovery trend, indicating declining input costs are not being passed along by feed producers. Recovery trends in the Young Chickens and Slaughter Broiler/Fryers Producer Price Indices suggest average annual animal slaughtering and processing production will begin rising in mid-2017. NP