Animal protein sector in the US adapts to the latest global crisis

Published 2022년 4월 22일

Tridge summary

The economic outlook remains positive with a decrease in unemployment rates and increasing consumer earnings and spending, despite inflation. The Federal Reserve is expected to combat inflation by raising interest rates significantly this year. However, global economic growth may lag in 2022 due to a shortage of inputs and high energy prices. The animal protein sector faces challenges such as decreasing output and highly pathogenic avian influenza, but there is optimism due to rising meat and poultry prices and surging meat and poultry exports, which increased by 22% in 2021. The foodservice industry has seen a sustained return of consumers, indicating strong demand despite meat and poultry price increases.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

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 ...

Source: Meat+Poultry