Manufacturing News
While the poultry industry has sustained some hard knocks in the past, it will have to adapt to major changes in the future.

Tough times ahead for US poultry industry

Tough market for poultry industryWhile the poultry industry has often had a hard, bumpy road, the industry is expected to face some permanent and significant challenges in the near future, says a report from Rabobank’s global Food & Agribusiness Research and Advisory (FAR) department. Entitled This is not your grandfather’s chicken industry—Thoughts from a banker’s perspective, the study is a wake-up call to the US chicken industry by Rabobank’s poultry sector experts.

According to the report, the US chicken industry is encountering permanent rather than cyclical changes that will require significant changes in how it operates in the future. These challenges include:

• Structurally higher and more volatile feed input costs

• Maturation of the US domestic market

• Rapid globalization of the industry, requiring US companies to develop new export products for new export markets

• Increasing government regulation that makes it difficult to achieve competitive cost management and efficiency

• Excess supply in the industry, which has been made difficult to remedy given recent court rulings that inhibit companies’ ability to eliminate capacity or even reduce production.

Rabobank believes the industry will adjust eventually, but those that will survive and thrive in the future will be the ones that recognize the operating environment has changed forever, and alter the way they run their businesses.

For more information, contact Lynne Burns; 212-808-2581;;

Did you enjoy this article? Click here to subscribe to Food Engineering Magazine.

You must login or register in order to post a comment.



Image Galleries

Plant of the Year 2015

Mars Chocolate was chosen as Food Engineering’s 2015 Plant of the Year. The first new Mars candy plant in North America in 35 years is not only LEED Gold certified, it’s highly automated as well.


Burns & McDonnell project manager RJ Hope and senior project engineer Justin Hamilton discuss the distinctions between Food Safety and Food Defense as well as the implications for food manufacturers of the Food Safety Modernization Act.
More Podcasts

Food Engineering

Food Engineering April 2015 Cover

2015 April

The April 2014 issue of Food Engineering features the Plant of the Year: Mars Chocolate. The first new Mars chocolate candy plant in North America in 35 years is not only LEED Gold certified, it’s highly automated as well.

Table Of Contents Subscribe

Plant Facility/Site Issues

What issue about your current plant facility/site keeps you up the most at night?
View Results Poll Archive


Food Authentication Using Bioorganic Molecules

This text provides critical tools and data needed to augment routine food analysis and enhance food safety by aiding in the detection of counterfeit, and potentially deleterious, foods.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


FE recent tweets

facebook_40.pngtwitter_40px.pngyoutube_40px.png linkedin_40px.pngGoogle +

Food Master

Food Engineering Food Master 2015Food Master 2015 is now available!

Where the buying process begins in the food and beverage manufacturing market. 

Visit to learn more.