Higher feed costs expected to pressure poultry operations in 2021
Higher feed costs are expected to pressure the poultry sector in 2021.
Rabobank director of animal protein Christine McCracken says the cost of grains and oilseeds has shot up over the past few months.
“Some of that might limit how much the industry grows as we head into the coming year, and I’m a little concerned I guess about how much of an impact that’s going to have on operations.”
She tells Brownfield even if demand rationing occurs, it would not affect consumers right away.
“There might be a higher average price-point for the consumer, but in general I wouldn’t look for huge cost inflation this year. It would likely be into late ’21, maybe ’22 before we really saw the impact.”
McCracken says 2021 is a tough year to forecast as vaccine distribution begins and the food service industry hopefully starts to recover.