U.S. protein supply and demand mainly in balance: report
Fitch Ratings has published the special report 'U.S. Protein: Checkup on Industry Fundamentals - 1st Quarter 2011'. The new report provides an update on various data Fitch uses to assess the health of the U.S. protein industry. An analysis of the latest production indicators, cold storage data, and export trends along with livestock and chicken prices is included in the report.
According to the report, protein companies continue to benefit from tight overall domestic supply and good pricing. However, producers are facing elevated feed costs while processing margins, particularly for value-added prepared foods and packaged meats, are being pressured by high beef and pork procurement costs.