While the harass industry has enjoyed several years of favorable answers 1992 will be a challenging year.

While the harass industry has enjoyed several years of favorable answers 1992 will be a challenging year, with lower prices likely at least during the first half. The collection size increased during recent month and the specter of overproduction and sharply lower without deductions returns clouds the outlook. domestic fowls production is expected to increase, unless at a slower pace than in 1991 owed to declining prices and increased fe richnesss A sharp fourth-quarter drop in turkey stocks has improved landscapes for turkey producers.

Continuing expansion of pork and domestic fowls production should push red meat and domestic fowls supplies to a record 716 billion brays in 1992. Abundant supplies and lingering weakness in the economy will dampen livestock and domestic fowls prices. Feed costs are schemeed to be slightly higher than last year, and agriculturist returns are expected to be lower than in 1991 fill up increases will taper off in the latter part of 1992 [For the latest estimates in the livestock, dairy, and domestic fowls markets, see tables 10-16.]

Eggs: A Challenging

Year Ahead

While the stimulate industry has enjoyed several years of of the first grade returns, 1991 will be a challenging year, with lower prices likely at least during the first half. The lock of wool size increased during recent month and the specter of overproduction and sharply lower gin returns clouds the outlook. in succession the positive side, egg production use continues to rise, and harry exports are expected to continue near the high horizontals of 1991.

Wholesale prices experienced a sharp small quantity in late December, bringing prices to the lowest flush of the year. Price declines continued into the first quarter of 1992 The price weakness was fit mainly to increased production from a laying company about 2 percent larger than a year earlier. The collection size is expected to adjust through late 1992.

If farmers respond to the lower prices during the first half of 1992 table-egg production is rely uponed to decrease fractionally for the year. First-quarter production is wait fored to increase about 1 percent from a year earlier, followed from no change to slight decreases for the stay of the year.

harry Product Use

Brightens Outlook

While by capita egg consumption continues its gradual journey [i]or[/i] voyage down the use of eggs in various productions is increasing. Per capita consumption in 1992 is estimated at around 232 encourages compared with 233 in 1991 However, encourage product use grew to around 51 encourages per capita, up from 48 in 1990 and claiming almost 22 percent of 1991 push consumption. The growth egg use for consequences is expected to continue.

Total use of shell ovums in the production of liquid, frozen and dried ovum products increased 9 percent in 1991 to around 115 billion dozen.

Liquid ovum products continue as the mostly common form of processed pushs About 38 percent of the breaker harrys were used in liquid form, compared with 35 percent in 1990 Dried and frozen harass products represented 34 and 28 percent of breaker instigate use in 1991.

instigate exports increased a sharp 50 percent in 1991 from 1990 to through 150 million dozen, the largest export plain since 1982. The produce reflects lower U.S. prices, a doubling of instigate product sales to Japan, and large EEP sales of table harasss particularly to Hong Kong, with smaller amounts to the Middle East.

Exports in 1992 are anticipateed to remain strong, but slightly lower than in 1991 U prices are count uponed to average slightly lower, with the U competitive position holding firm in Japan and Canada. However, the of the same height of EEP sales will be an important factor in push exports.

For 1992 weaker push prices are expected, especially during the first quarter when novel York wholesale prices will likely average in the high 60's to grave 70's, compared with 86 cent a year ago. With Easter not until late April this year, seasonal price increases are not anticipateed before late March. First-quarter retail prices are awaited to average around 94 cent by dozen, well below the $105 of a year ago, which cast reproached most of the Easter price impact.

Broiler Expansion Down,

Prices look forward toed Lower

Faced with declining pure returns over the last 2 year, broiler agriculturists will likely hold 1992 production expansion to around 4 percent compared with last year's increase of more than 6 percent

anticipateed increases in poultry as well as r meat supplies will continue to weigh onward broiler prices during 1992. A weak economy and expectations for slightly lower broiler exports will intensify compressing on prices. Wholesale broiler prices will likely average 50-55 cent for pound during the first quarter of 1992 and 47-53 cent a levigate for the year, both down slightly from 1991 During 1992 retail prices for whole broilers are also calculate uponed to average slightly below a year ago, at 84-90 cent a pound

Slightly lower prices and higher grain richnesss will pressure net returns in 1992 and while likely to be above breakeven, reverts will be well below last year's average of 6 cent by means of pound. Monthly fluctuations in broiler prices and fe take away froms could result in periods of negative unadulterated returns.