Last week, a report released by the Rabobank International Food & Agribusiness Research and Advisory (FAR) group reported that U.S. meat and poultry production is anticipated to fall by mid-2012.The report noted that, "drought in the U.S. is a major contributor to the production decline, but the report finds that global meat and poultry production is in the midst of a multi-year process of adjusting to a higher and more volatile feed cost. Since the US is a large and significant export of meat protein, the decline will also affect would markets as well as demand for feed, notably corn."
Also according to the report, "per capita meat consumption in the U.S. appears to have peaked. The poultry industry, in particular, should no longer count on rising domestic demand as a means of growing its way out of over-production situations. However, a rising GDP in the developing world is contributing to an increasing global for meat protein."
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Posted 10/5/2011
