Skip to content Skip to navigation

U.S. Protein Producers Seeing Record Growth in Demand, But Prices Predicted to Fall, Rabobank Says

U.S. protein producers are currently seeing record growth in demand; however, prices over the next couple years are predicted to fall. These findings are part of “Chickens, Cows, and Pigs… Oh My!  Implications of Record U.S. Protein Expansion,” a new report from the Rabobank Food & Agribusiness Research and Advisory group, that explores the impact of growth on the future of the market.  Production of protein in the United States is projected to grow at a rate of 2.5-percent annually. However, after a 5-percent jump in consumption within the domestic market, there are still many questions about demand at home.   “While we don’t foresee margins falling to the lows of 2008 and 2009 as prices decline through 2018, any producer considering a possible sale or divestiture should move quickly, as the outlook for margins and valuation multiples is notes moving in their favor,” Will Sawyer, the report author and Rabobank’s senior analyst said.

Article Link: 
Article Source: 
Washington Report
category: