Animal protein sector in the US adapts to the latest global crisis
Meat
United States
Published Apr 23, 2022
Tridge summary
DENVER – A new quarterly report from CoBank’s Knowledge Exchange, concluded that while the global impact of the Ukraine-Russian war is most significant in the grain and energy sectors with economic fallout that is expected to linger for the long-term, continued reliance on and growth of global trade is not expected to be a part of the fallout. Commodity sectors in particular will likely continue to fuel global trade.
Original content
Positive economic indicators, such as unemployment rates that have fallen back to levels seen before the pandemic and rising earnings and spending among consumers, are bright spots despite the blunting effect of inflation, which CoBank said will be combatted by the Federal Reserve, including raising interest rates significantly this year. “Cooling demand will probably take more Fed action than most currently expect,” said Dan Kowalski, vice president of CoBank’s Knowledge Exchange. “While interest rates are rising, financial conditions are still quite loose relative to the level of inflation. Real, or inflation-adjusted rates remain deeply negative, maintaining a stimulative effect on the economy. In total, we expect the Fed to raise rates by 250 basis points in 2022. But we won’t be surprised if they need to do more.” CoBank said inflation should ease by this summer and rising commodity prices that have spiked since the onset of the war, should ease. Other positive signs include ...
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