CoBank, an agribusiness lender, released a new research report stating they believe indicators point to animal protein supplies moving toward a state of equilibrium, with protein stocks more in line with overall levels of demand. I spoke with Trevor Amen, animal protein economist with CoBank, to learn more about how the report will impact producers.
“The overall focus of this report is to take a big picture look at the animal protein complex as a whole. Analyze those major supply and demand fundamentals that have heavily influenced the market in 2015 and some of the transitions we expect to happen in 2016.”
Trevor said they are predicting animal proteins will transition from the supply driven conditions we saw in 2015 into a marketplace powered by improving demand factors. Those factors are influenced heavily by the U.S. economy and the consumer.
“In the short-term we’ll see an optimistic price outlook for pork and poultry coming out of those lows. As far as beef prices, the longer-term outlook shows increases in supplies will continue to cause downward pressure on prices over the next couple of years.”
A strong U.S. consumer base is expected to be supportive of prices, Trevor added. “The trade situation is improving and the pace of this transition will henge on demand.”
Photos from the Convention: 2016 Cattle Industry Convention Photo Album