Navigation Links
Rabobank Releases Annual North American Food & Agribusiness Outlook
Date:12/21/2007

Consumer Trends, Animal Protein Exports, and Biofuels Key Issues in 2008

NEW YORK, Dec. 21 /PRNewswire/ -- Changes in consumer trends, country of origin labeling and developments in biofuels are some of the issues addressed in Rabobank's 2008 North American Food & Agribusiness Outlook.

The Outlook is produced annually by the Food and Agribusiness Research team (FAR) team, which provides information and analysis covering all of the major sectors throughout the food chain. The Americas-based FAR team is part of Rabobank's global FAR group, comprised of 80 research analysts located around the world, who conduct research on subjects of strategic interest to companies and customers within the food, agribusiness and agriculture sectors.

"The agribusiness environment is constantly evolving, reflecting ongoing changes in overall economic and business cycles, consumer preferences, demographic shifts, new product technologies, energy sources, as well as regulatory issues," said Debbie Perkins, Rabobank's Head of Food and Agribusiness Research in North America. "As a result, farmers, input suppliers, food companies and retailers are constantly being forced to rethink their business models."

In the Outlook, Rabobank's FAR team takes an in-depth look at issues that will affect the global agricultural industry in the coming year. Below are highlights of three key issues addressed in this year's Outlook: Consumer Trends, Animal Protein Exports, and Biofuels.

Consumer Trends

The main consumer trends affecting food purchases are health concerns, and increased desire for premium products and for a greater variety of products. With the increased media attention on obesity and associated health problems, consumers are trying to eat healthier foods, placing an increased focus on items such as fruits, vegetables and whole grains.

Additionally, as household disposable income increases and free time diminishes, consumers have an increased desire for better quality and more convenient products that command higher prices. For example, according to Rabobank's Outlook, one of the results of this trend is the increase in sales of specialty items such as fresh-cut fruits and vegetables. Between 1997 and 2006, fresh-cut produce sales increased by nearly 170 percent and reached an estimated $13.4 billion in sales.

"Food retailers are expected to see continued growth of many gourmet and specialty items, even if inflation continues," said FAR Vice President Stephen Rannekleiv. "Consumers can be expected to continue to trade down for items of lower importance and continue to trade up for products that they value. Inflation or even a slowing of the economy is more likely to affect mid-tier products than specialty items."

Animal Protein Exports

The United States meat (beef, pork and poultry) industry is becoming increasing reliant on international consumers. For example, in light of record pork supplies, the performance of U.S. pork exports will remain under the spotlight in 2008. Specifically, China has been touted as the next big opportunity for U.S. pork exports and is likely to become especially important given the recent decline in exports to Mexico, traditionally one of the most important markets for U.S. pork.

While the Chinese government has implemented myriad measures to stimulate domestic production, prices are expected to remain historically high for the next 12 months, because the Chinese pork inventory is barely keeping up with current demand, while demand continues to increase. and demand too strong. Additionally, while a devalued dollar will assist U.S. pork exporters in China and other export markets, competition is also expected to accelerate. U.S. poultry leg quarters are a very price competitive protein source in the Chinese market, and two other pork producing countries, Argentina and Brazil, have recently signed agreements allowing them to export to China.

"Future export performance will be influenced by: U.S. dollar movements; ongoing market access constraints and trade reform; competition from other meat exporters; cost competitiveness; and the threat of unforeseen events, such as disease," said FAR Executive Director Fiona Boal. "Despite the fact that many, if not all, of these factors are outside of the control of individual industry participants, the U.S. meat industry should not lose sight of the fact that the benefits of exporting and competing on the world stage far outweigh the risks."

Developments in Biofuels

Within the United States, feed continues to account for most of the demand in grains and oilseeds but the most important driver of growth, particularly for corn, continues to be the biofuel sector.

In 2007, the enthusiastic attitude of the market toward ethanol and corn were tempered by caution. Questions arose over issues such as whether the United States was approaching an ethanol surplus, and whether levels of transportation and infrastructure were capable of servicing the ethanol segment.

"After a strong performance in the 2007/2008 calendar year, corn acreage in the United States is likely to dip slightly, as some growers take advantage of higher soybean prices, and respond cautiously to a re-adjustment of the ethanol market structure," said FAR Vice President Michael Whitehead. "However, as the ethanol market in the United States becomes more efficient, and as U.S. government support for biofuels solidifies, a return to strong corn acreage and good prices seem likely."

The premier bank to the global food and agriculture industry, Rabobank (http://www.Rabobank.com) is a global financial services leader providing institutional and retail banking and agricultural finance solutions in key markets around the world. From its century-old roots in the Netherlands, Rabobank has grown into one of the 25 largest banks worldwide, with over $800 billion in total assets and operations in over 35 countries. Rabobank is the only private bank in the world with a triple A credit rating from both Standard & Poor's and Moody's, and is ranked among the world's safest banks. In the Americas, Rabobank is a leading financial partner to the entire American food and agribusiness industry and is a specialist in sophisticated, customer-driven solutions in the Global Financial Markets and Corporate Finance arenas. Rabobank also provides retail and commercial banking services in California; leasing; and real estate lending, operating loans, input financing and crop insurance to American agricultural producers, input suppliers and agricultural manufacturers.


'/>"/>
SOURCE Rabobank America
Copyright©2007 PR Newswire.
All rights reserved

Related biology technology :

1. Vital Images Releases Next Generation Enterprise-Wide Solutions Featuring Vitrea(R) 4.0 and ViTALConnect(R) 4.1
2. Quigley Corporation Releases Update on Quigley Pharmas Phase IIb Clinical Study of QR-333 in Diabetic Peripheral Neuropathy
3. Boston Scientific Releases Remote Monitoring Data from its Wireless LATITUDE(R) Patient Management System
4. ARUP Laboratories Releases ARUP Consult(R) 2.0
5. Annual General Meeting ("AGM") and Extraordinary General Meeting ("EGM") Notices Posted to Shareholders
6. Sinovac Announces Postponement of Annual General Meeting
7. Rosetta Genomics Announces Annual General Meeting of Shareholders to be Held on September 24, 2007
8. Boston Scientific to Participate in the Bear Stearns 20th Annual Healthcare Conference
9. deCODE genetics to Webcast Presentation at Thomas Weisel Partners Annual Healthcare Conference
10. FDA and Conformia Deliver Joint Presentation to Annual Regulatory and Compliance Symposium at Harvard
11. ADVENTRX Pharmaceuticals to Present at the 20th Annual Bear Stearns Healthcare Conference
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:3/22/2017)... Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN), today announced a major research ... GSK to generate genetic sequence data from the 500,000 volunteer ... researchers to gain valuable insights to support advances in the ... and life threatening diseases. ... Genetic evidence has revolutionized scientific discovery ...
(Date:3/22/2017)... 2017 Good Start Genetics, a leading family ... 130 million covered lives mark through its most recent ... Texas . With newly signed contracts nationally and ... strong payor acceptance based on the quality of its ... counseling, its industry-leading customer care and support and its ...
(Date:3/22/2017)... 22, 2017 MarketNewsUpdates.com News Commentary  ... The traditional ... being pressured as of late due to the rise of ... has a dramatic impact on patient,s quality of life as ... for identifying new forms of opioid formulations that prevent abuse. ...
(Date:3/22/2017)... ... March 21, 2017 , ... Premier executive recruitment firm, Slone Partners, is proud ... Hunt Scanlon Media. , Hunt Scanlon Media is one of the most ... news source in the human capital sector. , “It is a great honor for ...
Breaking Biology Technology:
(Date:2/27/2017)... --  Strategic Cyber Ventures , the industry,s first cybersecurity ... million investment in  Polarity , the first commercial human ... based and is led by cybersecurity veterans Tom ... Gula , also a longtime cybersecurity veteran and founder ... A round of funding. This new funding will be ...
(Date:2/21/2017)... and PORTLAND, Ore. , Feb. ... the Avamere Family of Companies (Avamere Health Services, Infinity ... a six-month research study that will apply the power ... at senior living and health centers. By analyzing data ... to gain insights into physical and environmental conditions, and ...
(Date:2/13/2017)... Feb. 13, 2017  RSA Conference -- RSA, a ... is designed to enhance fraud detection and investigation ... the RSA Fraud & Risk Intelligence Suite. The ... leverage additional insights from internal and external sources ... protect their customers from targeted cybercrime attacks. ...
Breaking Biology News(10 mins):