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Source: Tom Johnston, MEATINGPLACE, 3/1/13
The global poultry market will improve in 2013 as corn prices abate, competing proteins price higher and producers continue to restrain supply, according to a new report by Rabobank.
In the report by Rabobank’s global Food & Agribusiness Research and Advisory, analysts caution, however, that challenges remain. “Despite the positive picture, this outlook is very fragile and dependent upon risks related to feed costs and supply discipline,” said Rabobank analyst Nan-Dirk Mulder. “As grain and soybean stocks remain low, supply discipline will be a key tool for the industry to maintain margins.” Rabobank says the success of poultry companies in 2013 will largely depend on how well they can address volatility from grain and oilseed prices. Although the current outlook suggests a slowdown in feed price increases, uncertainty remains due to low stock levels and an uncertain production outlook for grains and oilseeds, the firm says.
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