Rabobank says US chicken industry is changed

The U.S. chicken industry is facing challenges that Rabobank says will change the industry permanently. The financial services provider has issued a report saying the key challenges include higher and more volatile feed input costs; the maturing of the U.S. domestic market; rapid globalization of the industry; increasing government regulation; and, excess supply.

The report – titled, ‘This is Not your Grandfathers’s Chicken Industry,’ says the industry will have to develop new export products for new markets and work to be as efficient as possible with higher production costs. It also says recent court rulings have made it hard for companies to eliminate capacity or even reduce production.

Rabobank says the US chicken industry “will adjust eventually” but the current climate has changed the way those that survive and thrive will be doing business going forward.

 


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