Poultry, meat exports critical for profitability in 2017
With more meat and poultry supplies on the market, exports of poultry, beef and pork are key to U.S. chicken industry profitability in 2017.
Exports may not be the only key to the measure of success for poultry and red meat producers in 2017, but robust overseas sales will clearly be the most critical component, according to the “Outlook for Animal Protein and Feedstuffs” panel at the National Chicken Council’s annual conference in late October of 2016.
Read the entire report about poultry and meat exports and profitability in 2017 in the January issue of WATT PoultryUSA.
How strong the export tailwind proves to be in the months ahead will depend on competitive pricing in world markets, the strength of the U.S. dollar, and the pace of economic growth in major global destinations, said panel experts. While abundant grain and oilseed crops in the 2016-17 harvest should make navigating these challenges more manageable, unexpected risks always remain, they added.
Favorable growing conditions are stimulating higher yields for essentially all grains and oilseeds this harvest, which may continue to play out in future USDA crop reports, Dr. Bill Lapp, president of Advanced Economic Solutions, said. If the old adage of big crops getting bigger proves correct again this crop year, Lapp sees favorable feed costs for most of 2017.
Although the U.S. dollar has been more stable since 2014, a sharp move in its value would impact agricultural commodity prices, a scenario that cannot be ruled out in the year ahead. Also easing the pressure on the upward movement of corn prices is the slowing growth in ethanol usage of corn with usage stabilizing at 5.2 to 5.3 billion bushels of corn.
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