✔ “Good domestic market and good
prospects for the export market
There were also positive comments
related to poor economic condi-
tions for competitive proteins, the
consumer desire for lower-priced
poultry and better corn prices,
although several mentioned that
grain prices remain a wildcard.
Supply/demand and cost
Although the majority of respondents were positive, there was still
a sizable minority who felt that key
market factors were still negative or
had not yet improved to a satisfactory level. These indicators included
excessive supply, dampened exports
and high and unpredictable input costs
(primarily grain and fuel). Recent
market data lends some support to
these concerns as broiler-egg sets
have been recently (from October
15 through November 19) on the
rise (see www.WATTAgNet.com/
Summary Confidence in the poultry industry has improved throughout
the 2011 calendar year. After reaching
rock bottom in the first quarter of
2011, there has been a steady rise in
all the key indicators primarily due
to improved market fundamentals –
decreased supply and higher demand.
However, supply is an evolving target
that can change quickly, while high
grain and fuel costs continue to depress profits. We can only hope that
the positive trends throughout 2011
carry over into the new year. ■
Greg Rennier, Ph.D., is president of
Rennier Associates, Inc., email greg@
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