The global poultry industry’s outlook for 2018 is promising on the strength of demand growth, but discipline in supply production will be required in the face of challenges such as the possible return of avian influenza and competition from beef and pork, according to Rabobank.
Top concerns this upcoming year are the possible return of Avian influenza during the northern hemisphere’s winter and increasing competition from rising red meat supplies and their softening prices. Global prices for chicken have remained strong, especially for whole chicken and breast meat, but dark meat prices have fallen.
The Rabobank report says The global poultry industry will face volatility exchange rate volatility, and changes in poultry traders’ procurement strategies in response to earlier scandals in trade. Meanwhile, new suppliers will continue to enter the market. Given these market conditions, supply discipline will be important.
The U.S. poultry industry will continue to succeed under favorable market conditions, including improved exports and a predicted record high corn and soybean harvest that will likely push feed prices down.
Producer milk prices are sliding now, but what’s the outlook for 2018? Gary Crawford reports for SFN.
USDA on Tuesday reported Nov. milk output up 1% from Nov. 2016. Cow herd was at 9.4 million head, 53,000 more than Nov. 2016.
The beef cow inventory has been in expansion mode since 2015.
But USDA predicted in its latest Livestock, Dairy and Poultry Outlook report that the pace of beef cow and heifer slaughter suggests that the rate of expansion may have slowed in 2017. Beef cow slaughter through October 2017 was only 11 percent higher than the same period in 2016.
Heifer slaughter has also seen a 12-percent increase through October 2017, while steer slaughter has only increased by about 3 percent.