Rising grain prices and the sluggish economy are expected to result in lower broiler production in the second half of 2012 and to lower production in 2013.

The production estimate for fourth-quarter 2012 was reduced by 50 million pounds and the 2013 estimate was reduced by 400 million pounds to 37.1 billion pounds.

Rising grain prices are also expected to have a downward impact on turkey production. The turkey meat production estimate for fourth-quarter 2012 was lowered by 25 million pounds to 1.55 billion pounds and the estimate for 2013 was lowered by 100 million to 5.94 billion pounds.

Egg prices may experience some upward pressure over the short term if significant quantities of shell eggs are exported to Mexico. Mexico’s shell egg production has been impacted by an outbreak of avian influenza.

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