The U.S. meat industry got off to a good start in 2015 and Tyson Foods is one of several meat companies expecting strong earnings this year behind higher demand for chicken and better pork profits. The beef market is likely to remain tough for processors.
Fitch Ratings recently noted the positive trends expected for the meat industry, citing “good demand and lower costs for feed. The analysts said the gains will be offset by a tepid beef market as ranchers are in the midst of rebuilding their herds. The growing consumer bias toward protein-rich foods and improving U.S. economy are likely to support the meat industry this year, the rating company analysts noted in their report.
“However, near-term uncertainty exists for exports due to a strong dollar, China’s ban on U.S. chicken, and disruptions at West coast ports,” Fitch added. “The smaller freezer stocks for chicken, beef and pork all remain down compared to the prior year leaving no immediate backup in supply and the potential for stronger prices for proteins in 2015.”
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