Another recession is likely to occur in the next 12 months and this could dramatically impact how consumers shop for poultry and other proteins.
"We will continue to see volatility for quite some time," said John Manzella, a globally recognized expert on business, trade policy, labor and economic trends and the founder of Manzellareport.com.
At the 2023 Annual Meat Conference, Manzella explored some of the critical issues affecting the current U.S. economy.
War on Ukraine
The Russian invasion of Ukraine will continue to affect the U.S. economy in 2023, Manzella said. The two countries produce 30% of the global grain supply and were major exporters of oil and other consumer goods. Disruptions to this market will be felt worldwide as other countries seek to fill the gap and seek alternative feedstuffs and energy sources.
Post-pandemic consumer trends still apply
Changes in behaviors due to the COVID-19 global pandemic still apply, especially as prices creep up. They're still more likely to dine at home and invest in goods, rather than services.
This mindset also explains the housing market. People who have owned a home for five years or more want to keep their low mortgage rates, while a new generation of remote workers are looking for more space to work at home. The result is low inventory and high demand.
Automation to solve labor shortages
It's no secret that the U.S. is experiencing a major labor shortage. That challenge becomes even more acute when you look at the poultry and other protein industries.
Automating repetitive processes can help attract younger workers to the industry and augment the work of people currently in the industry, Manzella explained.
Other ways to attract and retain workers in the current market include investing in education and engagement, remote work where possible, consider hiring older workers, offering generous daycare options and by offering incentives that meet your specific workers needs. Most important is to invest in the working environment, especially when it comes to attracting millennial workers, he added.
