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High feed prices continue to dog poultry industry: Rabobank
Story Date: 11/27/2012
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Source: Tom Johnston, MEATINGPLACE, 11/26/12
New research on fourth-quarter performance in the poultry industry published by Rabobank says high feed costs continue to put margins under pressure in many parts of the world.
Particularly feeling the squeeze are the poultry industries in the United States, the European Union, Thailand and South Africa, analyst Nan-Dirk Mulder says in the report, noting that the US and EU, for example, have only begun to cut supply.
“The first quarter of 2013 is likely to be challenging as higher feed costs move through the flocks," Mulder said. "Beyond that, returns will depend on industry discipline in keeping production sufficiently moderated to get prices higher and offset increasing costs. Weak global performance is urging industry players to rationalize supply base, and non-strategic vehicles are being devastated.
The report also covers recent industry activity, such as the sale of a Perdue processing plant to Wayne Farms, a merger between Avarama and BR Frango, and JBS’ acquisition of Agroveneto in Brazil.
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