3-4 news: Tyson optimistic about 2010-2011 outlook
The key is declining domestic availability of protein, according to Lochner. For the first time in 40 years, forecasters predict a reduction of available protein (chicken, beef, pork and turkey) in two consecutive years.
"U.S. per capita consumption is projected down due in part to reduced supplies, which should mean higher prices," Lochner said. "Long-term protein supplies are driven by profitability -- or the lack of profitability. Beginning with the 2006-2007 crop, corn and soybean prices became extremely volatile, coupled with a supply-demand imbalance. Most livestock and poultry producers lost money in '08 and '09, which led to cutbacks in the herds and flocks and less protein available in the marketplace."