Indian Beef Exports Surge To Continue in World's Leading Beef Exporters

Department of Agriculture Foreign Agricultural Service October Indian Beef Exports Surge To Continue in 3 India s beef exports are forecast 9 percent higher to a record of.6 million tons. Accounting for nearly a quarter of world trade, India expands while other countries make only marginal volume increases. 35% World's Leading Beef Exporters 3% Share of World Trade 5% % 5% % 5% % 7 8 9 3 India Australia Rising demand for low-cost product is fueled by many smaller, emerging and price sensitive Asian and Middle Eastern markets. Expanding markets for processing meat as well as halalcertified product provide opportunities for export growth. 5 Shipments to Asia Fuel Indian Beef Exports Thousand MT CWE 4 3 Other Africa North Africa Middle East Asia 7 8 9 Approved by the World Agricultural Outlook Board/USDA

Livestock and Poultry: World Markets and Trade October Contents Summary: Major Traders and U.S. Trade of Beef, Pork, and Poultry Beef Beef and Veal 3 Forecast Overview Beef Summary Tables Cattle Summary Tables Pork Pork: 3 Forecast Overview Pork Summary Tables Swine Summary Tables Poultry Meat Poultry Meat: 3 Forecast Overview Broiler Meat Summary Tables Turkey Meat Summary Tables Notes to Readers October

Production 8 9 (p) 3 (f) Percent Change to 3 Beef and Veal / 58,35 57,67 57,85 56,988 57,7 57,55.6% Pork / 97,897,533,933,984 4,363 4,7.3% Broiler and Turkey / 78,44 78,635 83,84 85,969 87,9 88,98.% Consumption 34,393 36,335 43,3 44,94 49,453 5,7.7% Beef and Veal / 57,477 56,85 56,4 55,375 55,53 55,566.% Pork / 97,999,39,743,58 3,79 4,53.4% Broiler & Turkey / 77,5 77,555 8,743 84,445 86,65 87,45.4% Imports 3,49 34,3 4,68 4,4 45,469 47,4.7% Beef and Veal / 6,775 6,55 6,64 6,53 6,683 6,977 4.4% Pork / 6,6 5,54 5,895 6,67 6,749 6,834.3% Broiler and Turkey / 8,6 7,697 8,5 8,63 8,874 9,7.5% Exports,5 9,787,688,753,36,88.3% Beef and Veal / 7,66 7,469 7,835 8,5 8,34 8,956 7.6% Pork / 6, 5,68 6,8 6,996 7,37 7,335.4% Broiler and Turkey / 9,3 8,967 9,448,5,58,7.6% U.S. Exports Summary: Major Traders and U.S. Trade of Beef, Pork, and Poultry,839,8 3,365 5,63 6,89 6,99 3.5% Beef and Veal / 95 878,43,63,4, -.% Pork /,,857,96,354,45,445.8% Broiler and Turkey / 3,463 3,335 3,333 3,48 3,547 3,465 -.3% 6,478 6,7 6,9 7,98 7,96 7, -.% U.S. Market Share (%) of Exports Among Major Traders Beef and Veal / % % 3% 6% 4% % Pork / 34% 33% 3% 34% 34% 33% Broiler and Turkey / 38% 37% 35% 34% 34% 3% Combined 8% 7% 7% 8% 7% 6% Notes: /, Metric Tons (Carcass Weight Equivalent) /, Metric Tons (Ready to Cook Equivalent) Note to Readers: s include only those countries that make up USDA s official PSD database are reported. This means totals do not encompass all production, consumption, and trade, but rather the sum of those countries reported in USDA s database, which represent the most important players in the world meat PSD situation. In an attempt to capture these major players, the list of countries reported changes periodically. October

BEEF AND VEAL: 3 FORECAST OVERVIEW World Production: Continuing Gains by India, South America Offset U.S. Decline World production is forecast slightly higher for the second consecutive year. Strong expansion by India and to a lesser extent, and Argentina more than offsets lower production forecast for the and the EU. 58 World Beef Production Million MT CWE 57.5 57 56.5 56 9 3 U.S. Long Term Decline Accelerates The world s largest beef producer, the, is forecast to tumble 4 percent to.3 million tons. Tight supplies of cattle available for slaughter persist on declining inventories triggered by recent years sharp reductions in the calf crop and reduced imports of live animals. Million Head 44 4 4 38 36 34 3 3 Declining U.S. Cattle Supply 3 5 7 9 3 Calf Crop Breeding Herd Follows Similar Decline s production is forecast percent lower to.8 million tons largely on reduced supplies of slaughter-ready cattle although high feed prices and marginal pasture conditions will also limit weight gains. October

EU Downward Trend Continues, Albeit at a Slower Rates EU production is forecast to fall percent to 7.7 million tons on increasing input costs and reductions in government support, despite increased efficiency. This reduction is a continuation over the past decade during which production fell 7 percent. The dairy herd is also shrinking due to increased milk production efficiency as smaller and less efficient farms exit the industry. Although continuing genetic improvements and the fading effects of the bluetongue disease are expected to raise reproductive efficiency, they are not expected to offset the decline in the breeding herd. Steep Production Decline for Korea Korea s production is forecast to drop percent to 3, tons. A drop in live cattle prices and the implementation of government policy to reduce the cattle inventory by encouraging cow slaughter resulted in a production surge in. This will negatively impact the availability of slaughter-ready cattle in 3 and reduce beef production. India s Surge Forecast to Continue India s bovine herd continues to expand in response to strong demand for dairy products, resulting in a percent growth forecast during 3 to almost 33 million head. Private sector investment has led to notable improvements in dairy management practices, including extension services, veterinary care and improved genetics. Rain deficits causing failed crops in parts of India during (Karnataka, Gujarat, Maharashtra, and Rajasthan) have led farmers to focus on dairying. Beef production is forecast to climb 4 percent to nearly 4. million tons fueled by robust foreign demand. Rising exports are triggering the construction of slaughterhouses providing farmers with a new market for non-productive buffalo heifers, bulls and bull calves. Indian federal and state laws prohibit the slaughter of cattle for religious concerns. Buffalo slaughter is allowed, although it is restricted to bulls and unproductive heifers. Considering the profitability of meat production in India, farmers now have an incentive to salvage and sell buffalo bull calves which were previously unused. Given this option, some farmers are fattening calves for slaughter, although the practice is still uncommon and Indian carcass weights remain low compared to other countries. Million Head 34 33 3 3 3 9 8 7 6 India: Beef Production Grows on Herd Size and Slaughter Rate 3 4 5 6 7 8 9 3 Cattle Beginning Stocks Slaughter to Inventory 4 8 6 4 Percent October

ian Production Higher on Domestic and International Demand s production is forecast up nearly percent to a new record of almost 9.4 million tons on strong domestic and foreign demand. A potentially weaker ian real combined with record increased cattle supplies (forecast to grow 3 percent during 3) is likely to generate competitive prices in the world market. Other Major Producers Forecast to Continue Gains Largely on Herd Rebuilding Argentina s production is forecast to continue to recover and is up 6 percent to nearly.8 million tons. Increased slaughter will be supported by growing cattle supplies as a consequence of herd rebuilding initiated in after severe drought and liquidation. Additional production growth is constrained as smaller exports (8, MT in 3 compared with 6, MT in 9) discourages marketing cattle at heavier weights as younger and lighter cattle are typically demanded by the domestic market. Despite expected high inflation rates and continuously increasing production costs, historically high cattle prices are still likely to provide positive returns to the cattle sector, encouraging the continuation of herd rebuilding, albeit at a more moderate pace. Australia s production is forecast to rise percent to nearly. million tons. Following the end of a near -year drought in, greatly improved pasture conditions and fodder supplies have supported herd rebuilding which is expected to continue through 3. In addition to greater slaughter, weights are forecast to remain near record levels. For the first time since 7, s production is forecast higher (up nearly percent to 5.6 million tons) on robust domestic demand, continued government support and expansion of larger-sized commercial operations. The government has subsidized beef cow genetic improvement over the past few years and invested in protecting and improving natural grasslands in major cattle grazing areas in west. Larger commercial slaughterhouses are signing more contracts with cattle producers and offering better prices than private cattle collectors, improving profit margins and sector efficiency. Trade: India Continues Expansion, Driving Exports Higher India is expected to account for three-quarters of forecast export growth as it expands in a number of markets with plentiful supplies and competitive prices. Among beef importing countries, the increase in demand will be relatively moderate, except for the, where additional supplies are needed to offset lower production. The accounts for over 5 percent of global import growth but imports of fresh, chilled and frozen product are supplied by a relatively few countries. EXPORTS India Propels World Exports India s exports are forecast 9 percent higher at record.6 million tons, comparable with s world record exports of.9 million tons in 7. India now accounts for nearly a quarter of world beef trade compared to a mere 8 percent in 9. This rapid expansion is fueled by demand for lowcost product in many smaller, emerging and price sensitive markets (Middle East, Africa, Southeast Asia) as well as the ability to provide halal product. However, exports remain constrained by limited access to many key markets due to disease restrictions. While India controls foot and mouth disease (FMD) through vaccination programs, it does not maintain a FMD status classification with the OIE (World Organization for Animal Health). October

Million MT CWE 4.5 4 3.5 3.5.5.5 Indian Beef Exports Climb on Increasing Supplies 3 6 9 Production Exports as a Percent of Production 6% 5% 4% 3% % % % Key Exporters in South America and Oceania to Make Gains Largely on Ample Supplies s exports at nearly.5 million tons are forecast to recover at the same pace as (4 percent). Ample supplies, expected weakness of the Real and stable cattle prices due to increased availability of slaughter-ready cattle will improve competitiveness. can ship to markets that India cannot (, EU), enabling preservation of their position in many key markets. Argentina, Paraguay and Uruguay are forecast to make gains of 6 percent, 4 percent and 3 percent, respectively, on greater supplies. Argentina s growth is limited by high cattle prices and an overvalued peso, but shipments to the EU and some other niche markets are exceptions. Although Paraguay and Uruguay ship significant volumes to, Paraguay has become dependent on that market since its outbreaks of FMD in / cut its access to many markets. Uruguay has benefitted by expanding shipments to former Paraguayan markets Chile, Israel and others. Australia and New Zealand s exports are both forecast to rise percent to.4 million tons and 59, tons, respectively. While both countries benefit from strong Asian demand, they also are key U.S. suppliers. Export Outlook Mixed in North America U.S. exports are forecast down percent at. million tons, but still account for percent of production. A relatively weak dollar is somewhat offset by higher prices as U.S. supplies tighten. Competitive pricing remains a challenge in the global market although demand from and major Asian markets remains strong. Rebounding from a three year decline, s exports are expected to increase 5 percent to 45, tons. Limited production and the continued strength of the Canadian dollar will likely constrain additional growth in exports, keeping shipments below historical levels. s exports are forecast to rise nearly 3 percent to 5, tons on not only increased volumes to the, but also greater shipments to, Japan and Korea. October

IMPORTS Imports Surge on Tight Domestic Supplies U.S. imports are forecast to surge percent to nearly. million tons. Lower domestic cow slaughter will reduce availability of domestic cow beef, in part supporting increased imports. A sluggish economic recovery continues to depress demand and a relatively weak dollar constrain additional imports. Million MT CWE.8.6.4..8.6.4. U.S. Net Beef Importer Again 3 5 7 9 3 Imports Exports 4% % % 8% 6% 4% % % U.S. Beef Imports to Consumption Ratio Rebounds 3 5 7 9 3 Imports as a Percent of Consumption Mexican Imports Increase to Offset Lower Production and Higher Exports s imports are forecast up 7 percent to 35, tons. Tight supplies and increased exports to higher priced markets are expected to bolster import demand. October

Reduced Production in Japan and South Korea Generate Higher Imports Japan s imports are forecast percent higher at 75, tons offsetting slightly lower production and higher consumption. Although high U.S. prices might deter some purchases, the is expected to capture increased market share. As there has been no official modification of policy, the current forecast assumes no changes in Japanese market access limitations for U.S. beef. Reduced domestic supplies will also bolster Korea s imports, forecast to increase 8 percent to 45, tons. The resumption of Canadian beef imports and the implementation of the KORUS FTA are not expected to have significant impact in 3. The Korean duty on U.S. beef imports will decline from the current 4 percent to 37.3 percent, but this decrease in duties is not expected to offset higher U.S. beef prices. Middle East and North African Demand Higher Middle East and North African demand is forecast to increase, benefiting key suppliers India and. Higher imports are expected for Algeria ( percent), Saudi Arabia (5 percent), Israel (8 percent) as well as a wide section of smaller markets such as Oman, Libya and the United Arab Emirates. Growing populations, limited domestic supplies, domestic resource constraints and ample Indian and ian supplies at competitive prices are driving regional demand. Only Egypt is forecast lower ( percent to 5, tons) as a rise in domestic production offsets consumption growth. Returns to Second Largest Importer is currently forecast to be the world s second largest importer (after the ), up one percent to nearly. million tons. Imports have consistently accounted for about 45 percent of consumption in recent years. U.S. and Trade Leading Beef Importer Position Again Million MT CWE.5.5 3 4 5 6 7 8 9 3 U.S. October

Beef and Veal Selected Countries Summary, Metric Tons (Carcass Weight Equivalent) 8 9 3 Oct Production 9,4 8,935 9,5 9,3 9, 9,375 8,9 7,93 8,48 8,3 7,85 7,7 6,3 5,764 5,6 5,55 5,54 5,58 India,55,54,84 3,44 3,643 4,68 Argentina 3,5 3,38,6,53,6,78 Australia,38,6,9,9,4,85,667,75,745,84,85,795 Pakistan,388,44,47,435,4,4,49,46,435,36,35,345,89,5,73,54,6,55 9,69 8,86 8,96 8,74 8,868 8,869 46,89 45,76 45,39 45, 45,46 46,5,63,89,46,988,79,73 58,35 57,67 57,85 56,988 57,7 57,55 Dom. Consumption 7,5 7,374 7,59 7,73 7,876 7,985 8,35 8,63 8,47 7,94 7,855 7,75 6,8 5,749 5,589 5,53 5,54 5,57 Argentina,758,76,346,3,45,6,77,55,55,47,4,46 India,88,95,95,95,963,8,33,976,938,9,95,9 Pakistan,37,44,436,4,367,367 Japan,73,,5,38,48,48,36,6,,9 95 93,43 9,77,4,73,84,48 45,74 43,946 44,4 43,74 43,847 44,5,43,39,38,65,666,36 57,477 56,85 56,4 55,375 55,53 55,566 Notes: / May contain meat of other bovines. / From 9, Turkey is excluded. October

Beef and Veal Selected Countries Summary, Metric Tons (Carcass Weight Equivalent) 8 9 3 Oct Imports,8,53,75,65,7,8 Japan 659 697 7 745 746 75 Korea, South 95 35 366 43 375 45 466 498 437 367 35 35 48 3 96 65 3 35 3 47 43 8 85 9 Venezuela 3 5 43 95 55 35 Egypt 66 8 6 7 3 5 Malaysia 39 5 53 67 85 5 Saudi Arabia 9 58 8 95 5,6,56,747,676,63,694 5,64 5,359 5,599 5,59 5,64 5,789,5,9,4 933,69,88 6,775 6,55 6,64 6,53 6,683 6,977 Exports India 67 69 97,94,68,6,8,596,558,34,394,45 Australia,47,364,368,4,38,4 New Zealand 533 54 53 53 5 59 494 48 53 46 395 45 Uruguay 36 376 347 3 365 375 4 48 338 449 3 3 Paraguay 33 54 96 7 4 5 4 5 3 48 5 Argentina 396 6 77 3 7 8 568 578 535 54 545 55 6,7 6,59 6,79 6,85 7, 7,845 95 878,43,63,4, 7,66 7,469 7,835 8,5 8,34 8,956 Notes: / May contain meat of other bovines. / From 9, Turkey is excluded. October

Cattle Selected Countries Summary (in, head) 8 9 3 Oct Cattle Beg. Stks India 34,48 39,9 36,4 3,8 33,7 37,3 75,437 79,54 85,59 9,95 97,55 3,75 5,948 5,7 5,43 4,8 4,346 4,5 89,43 88,837 88,3 87,437 86,9 85,3 Argentina 55,66 54,6 49,57 48,56 49,597 5,97 Colombia 3,95 3,775 3,845 3,97 3,9 3,6 Australia 8,37 7,3 7,96 7,55 8,56 9,7,546,4,677 9,97 9,695 9,43,85,666,9,456,9 8,57 3,755 3,3,67,55,5,545 86,6 75,989 57,478 56,8 55,753 55,498 93,97 99,8 96,4 9,35 98,57 937,947 96,35 94,5 93,88 9,68 9,769 89,7,8,94,3,6,9,995,3,3,9,34,7,647 Production (Calf Crop) India 6,5 6, 6,7 6,5 63,4 64,4 49,5 49,5 49, 49,445 49,69 5,85 45,36 4,576 4,5 4,9 4,95 4,365 3,85 3, 3, 9,6 9, 9,5 Argentina 4,9,,6 3, 3,8 4, Australia 8,956,5 8,84 9,68 9,8, 7,586 7,389 6,95 6,8 6,85 6,9 6,754 6,875 7, 6,9 6,8 6,6 Colombia 5,67 5,3 5, 5,5 5,5 5, New Zealand 4,446 4,53 4,53 4,786 5, 4,943 5,583,37 5,98 5,993 5,678 5,7 59,655 5,55 4,56 44,79 46,35 48,463 36,53 35,939 35,695 35,33 34,5 34,5 95,88 86,94 78, 8,5 8,85 8,63 Notes: / May contain other bovines. / From 9, Turkey is excluded. From, Nicaragua and South Africa are excluded. October

Cattle Selected Countries Summary (in, head) 8 9 3 Oct Imports Venezuela 36 47 6 335 55 5 5 47 83 3 5 58 49 38 95 Egypt 7 45 4 7 95 49 54 56 73 65 65 9 5 6 5 Japan 6 6 3 5 Ukraine 3 3 3 3 Belarus Argentina 5 7 69 6 764 8,4 75 937 939,84,,84,7,75, 3,48,83 3,35,8 3,,939 Exports 738 98,6,435,5,35 376 43 63 8 8 8 Australia 869 954 875 695 7 75,598,67,65 696 75 7 44 53 655 45 49 59 Colombia 9 5 4 6 65 5 Uruguay 69 7 7 3 6 New Zealand 7 3 7 34 4 47 33 9 8 9 9 9 Ukraine 4 4 3 95 9 4,3 4,3 4,767 4,384 4,653 4,555 7 58 9 94 5 5 4,47 4,359 4,858 4,578 4,878 4,78 Notes: / May contain other bovines. / From 9, Turkey is excluded. From, Nicaragua and South Africa are excluded. October

PORK AND SWINE: 3 FORECAST OVERVIEW World Pork Production Virtually Flat as High Feed Costs Temper Growth Global production is forecast nominally higher to a record 4.7 million tons. Rising feed costs, which shrink profit margins, will only be partially offset by improving efficiencies and intervening government programs in some countries. Million MT (CWE) 54 53 5 5 5 49 48 47 46 45 Dominates Global Pork Production Growth Rest of World 8 9 3, accounting for nearly half of world production, is forecast percent higher to a record 5. million tons. The anemic growth is largely attributed to weaker consumer demand resulting from relatively slow economic growth, which, squeezed by rising feed costs, has tightened producer margins. Poor hog prices in slowed expansion of swine production facilities and further encouraged small-scale producers to exit the industry. This is expected to result in nominally lower breeding stock in 3 and only a slight growth in hogs available for slaughter. However, production efficiencies continue to improve as large and modern farms expand at a faster pace than the exit of backyard operations. The government also continues to support the pork industry through productive sow subsidies, boosting breeding stock imports to record levels, and occasional pork purchases in an effort to support prices. s production is expected to grow percent, to a record 3.3 million tons, supported mostly by strong international demand and producer optimism for continued recovery in export markets. However, a major concern for hog producers is the recent increase in feed grain prices, which could squeeze margins. The government has already intervened in the market with subsidized corn auctions to protect the industry, extended deadlines for credit payment, and temporarily suspended state taxes. is expected to increase production by percent to. million tons, although higher feed grain prices are expected to constrain expansion. Large farms are increasing production through economies of size and scale, supported by government programs. However, small private farms, many in regions affected by outbreaks of African Swine Fever, have been forced to exit the industry. October

EU production is expected to ease by percent to.6 million tons as the industry copes with rising feed costs and stringent EU animal husbandry requirements. These requirements are resulting in a restructuring of the industry, with the most inefficient commercial farms exiting production. The pig crop is expected to remain constant, while higher feed costs cause lighter slaughter weights. The is forecast down percent to.4 million tons as high feed costs are expected to dampen production through reductions in farrowing and lighter slaughter weights as producers attempt to minimize feed costs. Only modest reductions to the breeding stock are forecast, leaving swine producers prepared to accelerate pig production in the latter part of 3, when the feed grain outlook is expected to be better. s production is lowered percent to.8 million tons as high feed costs and reduced demand for feeder hogs in the are expected to adversely impact the recovery in the hog sector, which began in early. Faced with higher input costs and financial difficulties, some smaller producers are expected to liquidate inventories beginning late and into 3, resulting in a smaller pig crop and slaughter in 3. Slaughter weights will reflect producers attempts to mitigate feed costs. Japan s output is projected down percent to.3 million tons as producer margins are negatively impacted by high feed costs coupled with low pork prices. Reduced breeding stock leads to a smaller pig crop, while rising feed costs push producers to slaughter at lighter weights. Weak consumer demand caused by slow income growth is expected to pressure prices. s production is expected to fall percent to. million tons as rising feed costs are expected to result in lower slaughter weights despite government support. Hog producers continue to improve efficiency through the incorporation of new breeding lines that are better able to adapt to the Mexican production system and enhanced farm management techniques, mitigating the decline in sow numbers. South Korea is forecast percent lower to. million tons as producer margins are squeezed by record high feed grain prices. Other factors dampening production are regulations for hog operations including provincial laws designating areas restricted from livestock production, animal space requirements, stricter requirements for manure disposal, FMD vaccination requirements, and traceability. October

Global Pork Trade Continues Slow Expansion Imports are expected to rise percent to a record 6.8 million tons with greater demand from countries where growth in domestic production cannot keep pace with rising demand. Thsoudand MT (CWE) 9 8 7 6 5 4 3 's Imports on New, Higher Plain s imports jump 5 percent to a record 85, tons, continuing on a new, higher plain. Whereas disease outbreaks caused the surges in 8 and, the reason for larger volumes forecast in 3 is slow domestic production growth not keeping pace with rising demand. Import growth is further supported by more competitive prices vis-à-vis domestic pork and constant reports of domestic food safety cases. It is worth noting that although is the world s 3 rd largest importer, imported pork accounts for less than percent of consumption. is forecast to grow by 3 percent to. million tons, mostly from Belarus, which uses its privilege as a member of the Customs Union to export duty-free products to. Additionally, under s WTO accession, in-quota tariff rates drop from 5 to percent, which is expected to have a positive effect on trade. Larger volumes are also expected from minor suppliers Chile and Ukraine, as they expand their footholds in the n market. s imports are forecast up percent to a record 69, tons due largely to flat domestic production. Pork s competitive pricing vis-à-vis beef and changing consumer preferences are expected to support demand. The majority of s pork imports consists of hams and mechanically deboned meat for the preparation of sausages, deli hams, and other cold cuts. There is growing consumption of these products by the middle and upper income consumers. South Korea is raised by percent to 55, tons as stagnant domestic production is expected to encourage a small growth in imports. A new plain may be established that is lower than record imports in response to the FMD outbreak, yet significantly higher than trade before that. Imports will be more competitive with domestic pork as tariff rates for U.S. and EU will be incrementally lower in accordance with Free Trade Agreement tariff reduction schedules. October

Ukraine falls percent to, tons following unusually large volumes in. Imports are highly regulated by the government and sensitive to consumer disposable income as well as prices of domestically produced meats. U.S. imports are forecast percent lower to 363, tons due principally to tight supplies as well as an unfavorable exchange rate in the major supplier,. Japan continues to be the world s leading pork importer with volumes forecast flat at.3 million tons as competition between low-priced domestic pork and imported chilled pork intensifies. Additionally, demand is tempered by slow income growth and price conscious consumers. Exports EU exports are forcast up 4 percent to a record.4 million tons due to strong demand from and and the low value of the Euro and Danish Kroner. A growing number of member states are eligible to ship to, which is expected to further support exports. Demand from other major markets is expected to remain static. Elimination of export restitutions for pork by the European Commission is not expected to significanlty decrease their competitiveness in third markets. is expected to expand by 7 percent to 645, tons mainly on strong demand from a number of importers, mainly Hong Kong, Angola, Argentina, and Singapore, as an expected weaker Real enhances competitiveness. Exporters are also focusing on expanding sales to, a newly opened market. U.S. exports are forecast up percent to a record.4 million tons based on strong Mexican and n demand and incremental increases in shipments to major Asian markets. U.S. product will face greater competition from European and ian pork in several markets, but is expected to be very competitive with Canadian pork. Following a record year, s exports are expected to decline by 4 percent to. million tons based on limited exportable supplies and unfavorable exchange rates. Canadian pork is expected to be less competitive vis-à-vis imports from competitors in Japan and, and domestic production in the. Although a net importer, s shipments are forecast down 7 percent to, tons due to weak demand from Asian markets. exports fresh and processed products to Hong Kong, and processed products to Japan and other Asian markets. Chile s exports are expected to rise 3 percent to 75, metric tons mostly on greater shipments to South American markets and. October

Pork Selected Countries Summary, Metric Tons (Carcass Weight Equivalent) 8 9 3 Oct Production 46,5 48,95 5,7 49,5 5,4 5,,596,434,57,938,75,65 3,5 3,3 3,95 3,7 3,6 3,33,736,844,9,,45,75 Vietnam,85,9,93,96,,5,786,788,77,797,79,775 Philippines,4,34,47,5,3,75 Japan,49,3,9,67,75,65,6,6,75,,, Korea, South,56,6, 837,67,5 5,4 5,3 5,466 5,675 5,68 5,64 87,98 9,9 9,747 9,653 93,788 94,7,599,44,86,33,575,44 97,897,533,933,984 4,363 4,7 Dom. Consumption 46,69 48,83 5,57 5,4 5,94 5,65,4,57,84,753,49,7,843,79,835,97 3, 3,75,39,43,577,644,656,686 Japan,486,467,488,5,533,53 Vietnam,86,89,9,94,98,5,65,77,784,7,85,79 Korea, South,59,48,539,487,54,555 Philippines,334,344,45,394,49,43 Taiwan 897 95 9 99 897 89 6,57 6,478 6,65 6,898 7,4 7,6 89,86 9,377 94,9 93,4 95,334 95,884 8,83 9,3 8,653 8,34 8,457 8,369 97,999,39,743,58 3,79 4,53 October

Pork Selected Countries Summary, Metric Tons (Carcass Weight Equivalent) 8 9 3 Oct Imports Japan,67,38,98,54,6,6,7 876 96 97 975, 79 7 45 758 775 85 535 678 687 594 675 69 Korea, South 43 39 38 64 5 55 Hong Kong 346 369 347 43 44 445 94 8 83 4 4 5 Australia 5 76 83 75 Ukraine 38 86 46 9 5 Philippines 93 59 45 3 3 8 788 889 95 96 99 5,883 5,6 5,55 6,43 6,38 6,47 377 378 39 364 367 363 6,6 5,54 5,895 6,67 6,749 6,834 Exports,77,46,755,4,8,375,9,3,59,97,5,95 65 77 69 584 65 645 3 3 78 44 5 Chile 4 5 3 39 7 75 9 7 78 86 9 Belarus 54 3 6 85 87 9 Australia 48 4 4 4 37 35 Ukraine 7 3 Vietnam 36 9 35 33 4 5 8 5 4, 3,85 4,66 4,64 4,8 4,89,,857,96,354,45,445 6, 5,68 6,8 6,996 7,37 7,335 October

Swine Selected Countries Summary (in, head) 8 9 3 Oct Beginning Stocks 439,895 46,93 469,96 477,5 473,34 466,645 59,73 53,67 5,98 5,773 48,545 48,45 3,947 33,89 35, 36,65 38,336 39,76 6,34 6,65 7,36 7,3 7,58 7,3 4,8,7,465,69,785,83 Japan 9,745 9,899, 9,768 9,735 9,7 Korea, South 8,74 8,3 8,7 8,449 8,7 9,7 9,4 9,3 8,979 9,7 9,76 9,499 Ukraine 7, 6,56 7,577 7,96 7,373 7,4 Belarus 3,598 3,74 3,78 3,887 3,989 4, 5,3,4,3,89,343,3 76,53 78,8 78,34 735,8 73,5 77,83 68,77 67,48 64,887 64,95 66,36 65, 774,68 785,959 793,9 8,746 797,5 79,383 Production (Pig Crop) 636,87 655,6 677,8 66,6 684, 69, 58,4 57,7 6, 65,87 65, 68, 34,845 35,89 36,97 37,75 37,7 37,9 6,647 8,798 9,47 3,65 3,35 3,645 3,74 9,4 8,688 8,593 8,4 7,85 Japan 6,96 7,7 7,5 7, 7, 6,89 5,94 5,966 6, 6,35 6,5 6,475 Korea, South 3,79 4,96 4,93 3,38 5,856 4,47 Ukraine 6,69 7,4 8,76 8,9 7,5 7,7 Belarus 4,9 4,95 5,5 5,75 5, 5,36 9,633 4,39 4,64 4,77 4,757 4,68,55,8,7,74,,558,88,44,3,83,,936 5,3 4,54 3,685 5,838 5,977 5,83,7,84,87,8,5,43,3,88,9,6,37,766 Notes: / From 9, Chile is excluded. October

Swine Selected Countries Summary (in, head) 8 9 3 Oct Imports 77,5 78 78 6 6 Ukraine 86 77 9 3 6 6 5 8 7 9 5 6 Korea, South 6 5 3 3 3 3 3 Belarus 3 5 3 5 Japan 958,35 9 949 859 887 9,348 6,365 5,749 5,795 5,7 5,53,36 7,67 6,65 6,744 6,559 6,47 Exports 9,357 6,376 5,76 5,8 5,75 5,55,645,695,748,563,65,6,58,,68,583,4,4 Belarus 3 54 3 5 5 6 Ukraine Australia Japan Korea, South,5,87 9,94 9,87 8,857 8,677 97 5 3 45 4,68,38 9,9 9,7 8,9 8,77 Notes: / From 9, Chile is excluded. October

BROILER MEAT: 3 FORECAST OVERVIEW Record World Broiler Production Constrained by Rising Production Costs Global production is forecast up percent to a record 83.5 million tons. Demand for animal protein particularly in, and India continues to stimulate global poultry production as a highly competitively priced option. Higher feed costs over the past few years have eroded profit margins, as larger producers have consolidated for cost-savings synergies and to help maintain margins. World Broiler Meat Production Continues to Rise......But, at a Declining Rate 85 8% Million MT 8 75 7 Rate of Production Growth 6% 4% % 65 9 3 % 3, India and Boost World Expansion Rising incomes, an expanding middle class and stronger demand for animal protein have propelled production in, India and. Combined, these countries represent 85 percent of the forecasted growth in global production for 3. is forecast to increase 3 percent to 4. million tons as consumer demand for meat protein continues to grow. However, higher feed prices are expected to dampen the rate of growth despite producers attempts to shift to lower-priced feed. is forecast to rise percent to 3. million tons. Production is supported by improved demand and abundant feed supplies. Government support may also mitigate the full impact of rising feed costs. India is forecast to increase 8 percent higher to 3.4 million tons. Despite the past years outbreaks of avian influenza, production is expanding rapidly on rising domestic consumption, changing culturally driven tastes and preferences, and ample domestic feed supplies. is forecast to increase 4 percent to.9 million tons as larger, modern facilities come into full operation. Government programs are aimed at mitigating rising feed costs and supporting the construction of new poultry farms. The EU is forecast to rise percent to 9.6 million tons as consumers substitute poultry for red meat. Production is expected to increase in all major EU producing countries, except France, where the industry is restructuring following the bankruptcy of the Doux poultry company, the largest exporter of broiler meat in the EU. October

Argentina and Turkey are forecast up 4 and percent to. and.7 million tons, respectively. Production is supported by greater domestic and foreign market demand. Argentina continues to expand production with government credit, ample supplies of feed grains and a more vertically integrated and efficient sector. Turkey production is higher to meet ever-increasing regional Middle East demand, as well as to offset short domestic supplies of red meat. The, the world s largest broiler meat producer, is forecast to decline percent to 6.3 million tons on tighter margins due to higher feed costs. Thailand is forecast to reduce output 6 percent to.5 million tons after last year s supply glut and this year s higher production costs, reversing the recent growth trend. TRADE: Global exports are forecast percent higher to a record. million tons, primarily on East Asian and Sub-Saharan African demand. Traditional suppliers (, the and EU) will continue to dominate the world market, while smaller suppliers (Thailand, Turkey, and Argentina) expand their market share in new and developing markets., the leading exporter, is forecast to rise by 3 percent to 3.6 million tons driven by East Asia ( and Hong Kong) and the Middle East (Iraq and Egypt). Gains to the Middle East are supported by their ability to ship whole bird and halal-certified product provides comparative advantages. The EU is up 4 percent to. million tons as more exports to Western and Southern African markets are expected to offset less to Saudi Arabia, Hong Kong and. Thailand is forecast to rise by 7 percent to 58, tons based on the reopening of the EU market for fresh broiler meat. Additional growth is expected in Southeast Asia, South Korea and the United Arab Emirates. Argentina and Turkey are forecast to boost exports by and 4 percent to 85, and 6, tons, respectively. Both countries are expected to expand in emerging markets in the Middle East. Turkey continues to direct most shipments to Iraq, eroding U.S. and ian market shares. Large investments in expanding export capacity will improve competiveness in shipping to developing markets such as Libya. U.S. exports are forecast to decline percent to 3. million tons due to tighter domestic supplies and waning demand by and Hong Kong. U.S. exports have remained relatively flat over the past few years as declines in some major markets have been offset by gains in a large number of smaller markets. October

TURKEY MEAT: 3 FORECAST OVERVIEW PRODUCTION: World production is forecast down percent to 5.4 million tons. Decline in the offsets gains in the EU and. The is expected to reduce production as a result of higher feed prices. TRADE: Global exports are forecast to fall by 3 percent to 649, tons as U.S. exports decline due to tighter supplies. ian exports are forecast to increase while EU and Canadian exports are expected to remain steady. s imports will likely be affected by tighter supplies of turkey in the United States. Imports by South Africa are forecast to rise as a result of growing consumer demand. October

Broiler Meat Selected Countries Summary, Metric Tons (Ready to Cook Equivalent) 8 9 3 Oct Production,84,,55 3, 3,7 4,,33,3,3,863,75 3,5 8,594 8,756 9, 9,3 9,48 9,58 India,49,55,65,9 3,6 3,4,853,78,8,96,945,95,68,6,3,575,75,85 Argentina,435,5,68,77,936, Turkey,7,5,43,64,687,7 Indonesia,35,49,465,55,54,55 Thailand,7,,8,35,55,45,63 3,53 3,68 3,964 4,448 4,575 56,46 57,68 6,39 63,967 65,946 67, 6,56 5,935 6,563 6,694 6,476 6,34 7,87 73,67 77,87 8,66 8,4 83,543 Dom. Consumption,954,,457 3,5 3,54 3,95 7,79 7,8 9,4 9,4 9,73 9,44 8,579 8,7 8,954 8,997 9,4 9, 3,8 3,64 3,364 3,473 3,564 3,578 India,489,549,648,89 3,5 3,4,84,98,96 3,44 3,5 3,35 Japan,98,98,78,,4,3 Argentina,75,37,475,57,687,746 South Africa,48,443,54,633,7,738 Indonesia,355,4,465,55,54,55 5,558 6,8 7,85 8,6 8,79 8,973 58,48 59,699 63,5 65,776 67,67 69,5 3,435,946 3,47 3,664 3,38 3,5 7,95 7,645 76,7 79,44 8,989 8,5 Notes: / Chicken paws are excluded. October

Broiler Meat Selected Countries Summary, Metric Tons (Ready to Cook Equivalent) 8 9 3 Oct Imports Japan 737 645 789 895 855 84 7 79 68 7 74 75 Saudi Arabia 5 65 68 785 75 75 433 49 549 578 63 64 Iraq 7 397 5 598 63 6,66 99 656 54 55 5 Hong Kong 36 53 95 4 37 38 South Africa 9 6 4 36 37 38 Angola 7 6 39 87 3 34 399 4 86 38 4 5,7,477,88,895 3,83 3,48 7,49 7,85 7,746 8,38 8,466 8,68 43 45 48 49 46 47 7,535 7,33 7,794 8,87 8,5 8,655 Exports 3,4 3, 3,7 3,443 3,478 3,58 77 765 99,35,8, Thailand 383 379 43 467 54 58 85 9 379 43 4 4 Argentina 64 78 4 58 85 Turkey 4 86 6 5 6 5 47 47 43 45 5 Belarus 7 38 74 Chile 63 87 79 9 9 95 5 7 5 35 5 55 54 93 34 47 63 5,9 5,337 5,798 6,36 6,65 6,9 3,57 3,93 3,69 3,6 3, 3,5 8,348 8,43 8,867 9,5 9,86,5 Notes: / Chicken paws are excluded. October

Turkey Meat Selected Countries Summary, Metric Tons (Ready to Cook Equivalent) 8 9 3 Oct Production,83,795,946,95,,3 465 466 485 489 5 5 8 67 59 6 65 65 39 3 7 9 5 5 3 4 3 South Africa 7 8 8 8 8 8 5 5 6 6 6 6,54,483,685,76,83,847,796,535,57,59,675,59 5,337 5,8 5, 5,38 5,498 5,439 Dom. Consumption,835,8,9,885,95,96 6 3 37 348 355 36 55 63 64 83 67 63 5 43 45 48 49 7 7 5 7 5 South Africa 38 34 34 3 4 48 5 3 3 4 47 47,666,547,75,73,844,856,434,363,36,74,33,99 5, 4,9 5, 5,5 5,76 5,55 October

Turkey Meat Selected Countries Summary, Metric Tons (Ready to Cook Equivalent) 8 9 3 Oct Imports 97 44 53 5 7 55 5 99 8 8 8 45 7 6 34 4 4 South Africa 3 6 6 4 3 4 68 4 35 7 9 8 8 7 8 7 475 358 347 36 35 343 6 9 9 48 367 358 336 36 35 Exports 4 64 58 4 55 6 6 34 47 5 5 5 5 4 5 5 South Africa 349 95 37 3 33 336 36 4 64 39 336 33 655 537 58 63 667 649 October

Notes to Readers The Livestock and Poultry: World Markets and Trade circular is designed to give a snapshot of the current situation among the major players in world beef, pork, broiler meat, and turkey meat trade. Summary tables for meat production, imports, exports, and consumption provide an overview. Data Modifications Cattle/Beef: The cattle and beef PSDs for the following countries are revised from onward on official production data revisions: Australia, and. The beef PSDs for the following countries are revised from 998 onward on additional production data available: Albania, Algeria, Lebanon, Macedonia, Peru and Switzerland. The beef PSDs for the following countries are revised from 998 onward on additional trade data available: Ghana, Jamaica, Kuwait, Lebanon, Macedonia, Oman, Singapore, the United Arab Emirates and Vietnam. Swine/Pork: The swine and pork PSDs for are revised from 7 onward on official data revisions. The pork PSDs for the following countries are revised on additional production data available: Albania (5-), Bosnia and Herzegovina (4-), Macedonia (- ), New Zealand (3-), South Africa (-), Uruguay (-), Vietnam (-). The pork PSD for the Netherlands Antilles is discontinued from onward. Broiler Meat: Based on new trade and/or production data, historical PSDs for broiler meat are revised for Angola (-), Bahrain (7-), Benin (7-), (9-), Georgia (9-), Guatemala (6-), Iraq (), Jamaica (5-), Jordan (), Kuwait (-), Macedonia (7-), Moldova (), Philippines (-), Qatar (), Saudi Arabia (5-), Taiwan (), UAE (-), Vietnam (7-). Conversion Rates Beef &Veal Pork Conversion Rate.4.3 HS Codes Fresh/Chilled: Frozen: Processed: & 65 Fresh/Chilled: 3, 3, 39 Frozen: 3, 3, 39 Processed:,, 9, 64, 64, 649 Broiler Meat Turkey Meat Conversion Rate HS Codes Fresh/Chilled: 7., 7.3 Frozen: 7., 7.4 Processed and Salted: 6.3,.99 Fresh/Chilled: 7.4, 7.6, 7.3, 7.34, 7.35 Frozen: 7.5, 7.7, 7.33, 7.36 Processed: 6.3 October

Note: There are several exceptions by country/product. In general, chicken paws are excluded and carabeef (buffalo meat) is included. Assumptions BSE: Forecast assumes a continuation of trade policies due to BSE (bovine spongiform encephalopathy) currently in place by U.S. and Canadian trading partners as of October 8,. Other Diseases (AI, HN, FMD): Forecast reflects policies currently in place as a result of outbreaks as of October 8,. Technical Notes CWE/PWE: All quantities (beef and pork) noted are in Carcass Weight Equivalent (CWE) unless otherwise noted as Product Weight Equivalent (PWE). CWE is the weight of an animal after slaughter and removal of most internal organs, head, and skin. PWE is the actual weight of the meat product exported. FAS Reports from Overseas Offices The Livestock and Poultry: World Markets and Trade circular is based on post reports submitted since July and on available secondary information. The individual country reports can be obtained on FAS Online at: http://www.fas.usda.gov/scriptsw/attacherep/default.asp. PSD Online The entire USDA PSD database is available electronically on PSD Online. Users can use this system to generate the full set of PSD data for those countries reporting. PSD Online can be reached through http://www.fas.usda.gov/psdonline. Additional Resources Please refer to the USDA-FAS Dairy, Livestock and Poultry website at: http://www.fas.usda.gov/dlp/livestock_poultry.asp for additional data and analysis. Situation and outlook information on U.S. livestock and poultry can be obtained from the USDA- Economic Research Service at: http://www.ers.usda.gov/publications/ldp/. Future Releases and Contact Information Please visit http://www.fas.usda.gov/dlp/livestock_poultry.asp to view archived and future releases. The next release of this circular will be in April 3. Questions may be directed to the following staff: Lesley Ahmed () 7-78 Lesley.Ahmed@fas.usda.gov Swine and Pork Claire Mezoughem () 7-775 Claire.Mezoughem@fas.usda.gov Cattle and Beef Lazaro Sandoval () 69-8478 Lazaro.Sandoval@fas.usda.gov Poultry (Broiler, Turkey and Other Poultry products) October