USA: Demand for meat, poultry remains strong as headwinds persist

Meat

United States

Published Jun 15, 2022

Tridge summary

KANSAS CITY, MO. — At the 2022 Sosland Purchasing Seminar, Adam Stout, risk management consultant with Kansas City, Mo.-based StoneX Financial Inc., discussed the current challenges and prospects for the protein sector during a presentation on June 6. Stout’s overview, touching on beef, pork and poultry markets, noted three major themes across the markets: lower production despite high demand, the improved labor situation and the indirect impact of the Russia-Ukraine war.

Original content

Demand has been strong domestically as well as in the export markets, Stout noted. “If you go back to the start of COVID and the pandemic, I don't know that you could describe demand as anything other than exceptional,” he said. “Demand has been great for all of the products.” Unexpectedly, the US economy saw spikes in income levels due to the fiscal stimulus. Despite extra currency in the market, a strain has been retail pricing. Stout pointed out that retail pricing in all protein categories is near record highs. Stout also attributed higher costs as one of the many results of the ongoing Russia-Ukraine war. “We don’t deal a lot in the protein markets in either Russia or Ukraine, but the indirect impact is significant — I mean, higher beef costs, higher turkey costs,” Stout said. While the labor situation has recently been one of the biggest challenges facing all industries, including meat and poultry processing, Stout said it will likely be overshadowed by another pressing ...

Source: Meat+Poultry