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

January 12, 2012
/ Print / Reprints /
/ Text Size+

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 2014

Blue Diamond Growers was chosen as Food Engineering's 2014 Plant of the Year. The Sacramento-based company is the world’s largest producer of almonds and almond ingredients.


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

FSMA Audit

What is the is most important step you have taken to become ready for a FSMA audit?
View Results Poll Archive

Food Engineering

FE September 2014

2014 September

The September 2014 issue of Food Engineering explores how lean manufacturing, quality improvements and increased automation helps processors meet rapidly changing demands. Also, read how robotics, advanced machine controls, software and OEE are just a few of the tools that can boost productivity on packaging lines.

Table Of Contents Subscribe


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.

Food Master

Food Master Cover 2014Food Master 2014 is now available!

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

Visit to learn more.


FE recent tweets

facebook_40.pngtwitter_40px.pngyoutube_40px.png linkedin_40px.pngGoogle +