Protein producers should see continued strong export and domestic demand for their products despite historically high prices, according to an industry analyst who sees strong supplies for chicken and pork in the next year.
There has been an upsurge in protein consumption in the American diet in the last several years, adding that there has been a relatively heavy concentration of meat-based items in new product activity. She also cites solid export demand, with combined broiler, pork and beef exports up 5.3 percent for 2014 – so far – compared with the corresponding period one year ago.
Looking ahead into 2015, it is believed that export demand will be pushed ahead even further if pork and chicken supplies show meaningful gains next year. The demand prospects look positive for U.S. protein producers because key competitors in export markets are either struggling with constrained supplies or disease, including bird flu and PEDv. Lower feed prices should also help U.S. producers boost their competitive positions.
Source: meatingplace.com, 6-20-2014