USDA forecasts drop in hide export values
The United States Department of Agriculture (USDA) has downwardly revised its dairy, livestock and poultry export projections for Full Year 2002, blaming a combination of lower average hide prices and trade restrictions on poultry to Russia.
Compared with the previous projection made in February, the forecast was down $300 million or 2.4% to $12.3 billion. Hides and skins accounted for no less than two-thirds of the total decline, falling by $200 million or 9.5% to $1.9 billion.
Given the continuing strong demand from China, Taiwan and Korea, some year-on-year increase in whole bovine hide volume could still be expected, the report said. However, overall values were expected to decline as the perceived threat posed by Foot and Mouth Disease and BSE to European supplies continued to recede.
Increases in edible and inedible tallow exports to Mexico meanwhile accounted for the bulk of the $125 million increase seen in the projection for lard, tallow and grease exports, which was up 42.4% on the February forecast at $420 million.
