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Rabobank releases Q3 report on global poultry industry


July 30, 2012
By PR Newswire

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Jul. 30, 2012, New York, NY – Rabobank has published a new Q3 report looking at the challenges facing the global poultry industry as a consequence of the recent, dramatic run-up in feed input costs due primarily to deteriorating crop conditions in the United States. The low stock levels in global grain and oilseed markets render these markets very sensitive for short term changes in supply and demand.

The report, authored by Rabobank’s Food & Agribusiness Research and Advisory group, says that poultry industries all over the world are now facing margin pressures, and only a few regions can escape this new challenging situation. Russian suppliers are now partly being compensated by subsidies, and the U.S. industry is reaping the benefits of recent production cut-backs, which have greatly improved U.S. market balance and should give the industry more power to pass on higher costs to customers. Still, the report says, poultry companies in all regions are facing shrinking margins despite relatively high beef and pork prices.

Rabobank outlines the key elements that will enable the global poultry industry to deal with current market dynamics

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  1. adequate industry discipline
  2. efficiency
  3. market power
  4. risk management

Rabobank concludes in its report that these elements are proven to be the key ingredients for the poultry industry to escape the volatile environment of high input costs.

About Rabobank

Rabobank Group is a global financial services leader providing wholesale and retail banking, asset management, leasing, real estate services, and renewable energy project financing. Founded over a century ago, Rabobank is one of the largest banks in the world, with nearly $1 trillion in assets and operations in more than 40 countries, and is among the highest rated private banks by S&P and Moody’s. Internationally Rabobank focuses on food and agriculture and in North America it is a premier bank to the food, beverage and agribusiness industry.  Rabobank’s Food & Agribusiness Research and Advisory group is comprised of more than 80 analysts around the world who provide expert analysis, insight and counsel to Rabobank clients about trends, issues and developments in all major sectors of agriculture. For more information, visit www.Rabobank.com