030220 USDA Sees Record-High Retail Beef PricesFebruary 21, 2003Washington - U.S. consumers should expect record prices this year for sirloin steaks and hamburgers due to tight supplies and higher feed costs, the U.S. Agriculture Department said on Friday. USDA analyst Shayle Shagam forecast U.S. retail beef prices this year would surpass the record $3.45 per pound set in April 2001. At its annual Outlook Forum, the USDA said U.S. beef production would not likely rise before 2006, as ranchers continue to liquidate their herds. U.S. beef production was forecast at 26.1 billion pounds, down from 27.2 billion pounds last year. The high beef prices can also be attributed to the high feed costs U.S. livestock producers incurred last year, the USDA said. U.S. beef exports were forecast to rise slightly this year, although the total could be reduced by higher prices and weakness in the currencies of major importing countries, the USDA said. Beef exports are pegged at 2.57 billion pounds, up from 2.48 billion pounds in 2002, with sales to top buyer Japan expected to recover, Shagam said. "The economy remains sluggish and any economic disruption could limit meat demand," Shagam said at USDA's annual Outlook Forum. "Disease and food safety concerns are increasing and could derail any expansion if foreign or domestic consumers shy away from meat consumption." U.S. pork production was forecast at 19.46 billion pounds, down from a record 19.67 billion pounds in 2002.
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