Source: Rita Jane Gabbett, MEATINGPLACE, 4/4/16


BB&T Capital Markets looked at the impact of a planned large new poultry plant, high pork prices in China and a more favorable currency environment on the U.S. protein industry in its weekly Protein and Dairy Roundup report to investors.

Chicken plant
The Omaha World Herald is reporting that an unidentified global food company is interested in building a chicken processing plant on the eastern side of Nebraska by 2018, potentially processing up to 350,000 birds per day.

The BB&T analysts estimate the plant could increase U.S. poultry industry production capacity by up to 1 percent.

China pork
Local Chinese pork prices are now 30 percent above year-ago prices and about 2.3 times the price of U.S. pork.
“With some expecting strength to continue as local producers respond to tougher environmental rules; this could aid U.S. exports of pork,” the analysts predicted.

Currency rates
Finally, the report noted the global currency environment has become somewhat more favorable for U.S. protein producers, as during the past three months, major importers of meat protein have seen their currencies appreciate by 3 percent to 5 percent against the U.S. dollar.

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