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- Commodity Fundamentals - 2004 Articles


Meats

US commercial red meat includes beef, veal, lamb, and pork. Red meat is a good source of iron, vitamin B12, and protein, and eliminating it from the diet can lead to iron and zinc deficiencies. Today, red meat is far leaner than it was 30 years ago due to newer breeds of livestock that carry less fat. The leanest cuts of beef include tenderloin, sirloin, and flank. The leanest cuts of pork include pork tenderloin, loin chops, and rib chops.

The USDA (United States Department of Agriculture) grades various cuts of meat. “Prime” is the highest USDA grade for beef, veal, and lamb. “Choice” is the grade designation below Prime for beef, veal, and lamb. “Commercial” and “Cutter” grades are one of the lower designations for beef, usually sold as ground meat, sausage, and canned meat. “Canner” is the lowest USDA grade designation for beef and is used primarily in canned meats not sold at retail.

Supply – World meat production is led by China with 49.800 million metric tons of production in 2003, up 2.5% from 48.600 million metric tons in 2002. US meat production is the second largest in the world at 20.501 million metric tons in 2003, down –3.8% from 21.306 million metric tons in 2002. Brazil is the third largest producer with 9.815 million metric tons in 2003, up 3.4% from 9.492 million metric tons in 2002.

US meat production involves mostly the production of beef which accounts for 56.5% of red meat production in 2003. Pork accounts for 42.6% of red meat production. Veal accounts for only 0.4% and lamb and mutton account for only 0.5% of US red meat production.

Demand – US consumption of red meats in 2003 fell to 46.269 billion pounds from 47.596 billion pounds in 2002. US per capita consumption of red meat in 2003 was 116.0 pounds per year per person, down from 121.0 pounds in 2002 showing the trend toward healthier foods. Per capital red meat consumption in 2003 was an all-time record low for Americans going back to the beginning of data availability in 1970. The break-down on the per capita red meat consumption figures show per capita consumption of 64.0 pounds of beef (a record low), 1.0 pound of veal, 1.0 pound of lamb and mutton, and 50.0 pounds of pork (matching the record low posted in 2001).

Trade – The world’s largest importers of red meat are Japan with 2.010 million metric tons, the US with 1.990 million metric tons, and Russia with 1.450 million metric tons. The world’s largest exporters of red meat are the US with 1.874 million metric tons of exports, Australia with 1.583 million metric tons, Canada with 1.415 million metric tons, and Brazil with 1.355 million metric tons. Brazil’s export figures have been rising sharply, having more than quadrupled from 6 years ago. The US export figure of 1.874 million metric tons of exports in 2003 were an all-time record high.



*Articles from the Commodity Research Bureau (CRB) Commodity Yearbook. The single most comprehensive source of commodity and futures market information available, the Yearbook is the book of record of the Commodity Research Bureau, which is, in turn, the organization of record for the commodity industry itself. Its sources—reports from governments, private industries, and trade and industrial associations—are authoritative, and its historical scope is second to none. Additional information can be found at: http://www.crbtrader.com/pubs/yb.asp
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