Meat and Poultry Production to Slow Despite 2022’s Robust Profits, CoBank Says

Jan 03, 2023

Despite "tectonic shifts" in consumer eating habits, record high feed costs, labor shortages and supply chain logjams, CoBank says most U.S. animal protein industry segments have posted phenomenal financial performance over the past three years. However, CoBank Knowledge Exchange’s latest quarterly report says this broad-based era of profitability will likely come to an end in 2023.

"On the supply side, the high costs of feed, labor and construction support the prevailing cautionary mood toward expanding production. On the demand side, consumers are reeling from rapidly declining real wages – a trend likely to continue well into 2023," says Brian Earnest, lead economist, animal protein at CoBank. "Add in climate uncertainties, ESG pressures and increasing labor and energy costs and it’s likely that 2023 will be a year when major market participants pause, reflect and guard balance sheets."

Over the past two years, consumer red meat demand has remained steadfast despite the highest inflation in more than 40 years. CoBank notes the following observations in its report:

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Video: Five Confirmed New World Screwworm Cases Raise Alarm for Livestock and Pet Owners

Pat Hoffmann, Swine Technical Consultant at Elanco Animal Health tells us about the impact of New World Screwworm. The emergence of New World screwworm in the U.S. creates a threat for veterinarians, livestock producers and pet owners that has not been seen north of the Florida Keys since the fly was eradicated from the United States more than 50 years ago. New World screwworm (Cochliomyia hominivorax) larvae feed on living tissue and can affect a wide range of warm-blooded animals, including livestock, companion animals, wildlife, and even humans.
“New World screwworm could have a devastating impact on animal health, welfare, and producer livelihoods,” said Jeff Simmons, President and CEO, Elanco Animal Health. “We want to thank the FDA, EPA and USDA, for all their work to prepare for this threat. We’re committed to supporting our customers during this challenging time by delivering innovation, scientific expertise, and available resources to help treat New World screwworm and support the health and well-being of animals.”
Elanco is working alongside the U.S. animal health industry to help them fight against this parasite, offering a portfolio of options for pets and livestock that can help treat New World screwworm larvae infestations.