TROY, Mich. – A new survey released Wednesday shows that many in the food industry are concerned with the current economic turmoil, with most expecting foodservice and the meat industry to be most negatively impacted.
Clear Seas Research of Troy, Mich. reported that 44 percent of those surveyed expected a moderate impact of the credit crisis on their own companies, with 30 percent expecting a great impact. A majority of respondents said their companies’ daily working capital will decline because of the crisis.
The credit crisis has grown in past weeks as banks have sharply reduced the number of short term loans to other banks and business across the board. Effects of the U.S. crisis have also affected economies and stock markets worldwide.
The survey reported that a large majority of respondents, 73 percent, believe the current economic conditions will increase industry consolidation.
According to Clear Seas, 44 percent believe that foodservice will be the most negatively impacted, with 17 percent believing the meat and poultry segment will face the hardest struggles.
“Commodity pricing has not yet passed through to the consumer (in regards to the price of
meat),” said one respondent. “When the expensive animals are harvested the products will increase in price and the consumers will choose lower grade cuts or nothing at all”
Source: Clear Seas Research