Wall Street Journal: Tyson Reduces Some Beef Prices as Coronavirus Pushes Grocery-Store Costs Higher
Published May 13, 2020
Senior Protein Analyst Don Close explains how discounting meat products can help preserve consumer demand. “Clearly with the price run-up we’ve seen in recent weeks, we’re seeing demand erosion,” he tells The Wall Street Journal. Shoppers dealing with economic turmoil will often downgrade from a rib-eye steak to a strip steak, or to a burger, he explains further.
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The Packer: Avocado outlook strong, Rabobank report predicts
Published May 7, 2020
Rabobank’s David Magaña and Roland Fumasi say that U.S. per capita consumption of avocados has grown at a compound annual growth rate of 8% in the last decade and now tops 8 pounds per person per year. Despite increased volume this year and lost foodservice business because of Covid-19, they expect that avocado prices will remain steady through 2020 and into the first quarter of 2021.
CNBC: U.S. pork exports to China soar amid meat shortage
Published May 11, 2020
On CNBC’s “The Exchange,” reporter Aditi Roy explains why pork exports to China are soaring, citing insights from Senior Animal Protein Analyst Christine McCracken. Pork prices had been depressed before the pandemic and that prompted China to start buying more pork, said McCracken. Now that pork prices are on the rise, McCracken expects to see reduced demand from China, which will help normalize prices over the next few weeks.
Dairy Herd Management: Do Not Expect This Milk Price Rally to Last
Published May 21, 2020
The recent rally in milk prices can be attributed to an increase in demand from a number of factors, explains Dairy Analyst Ben Laine. “Right now, the strength that we’re seeing is justified given the amount of purchases from the USDA and some of the other factors like the strong demand for the initial refilling of the pipelines and food service,” he says. “But we need to remember that as we go forward this isn’t going to be sustained…It’s an immediate demand surge, but long-term we are going to be entering an economic recession. There’s going to be slower worldwide demand so exports could suffer.”
Prepared Foods: Fresh & Frozen Bakery Amid Covid-19
Published May 15, 2020
Prepared Foods highlights Rabobank’s Fresh and Frozen Bakery Amid Covid-19 report, which discusses how fresh and frozen bakery players have been affected by the coronavirus pandemic. With foodservice representing as much as 70% of their sales, frozen bakery players have seen reduced orders as food consumption changes from restaurants to home kitchens, the report notes. Meanwhile, retail players – mostly in the fresh bread segment – are riding a wave of increased demand.
Meatingplace: Meat Remains the Retail Champ
Published May 11, 2020
Senior Animal Protein Analyst Christine McCracken provides an update on the recovery of the U.S. pork and beef industries, as many processing plants start to come back online. “Pork production rebounded 15% from historically low levels last week, but continues to trail 2019 by 24%. The beef industry has been slower to recover with a 6% improvement since last week, and is still 32% below 2019 volumes,” she said. “Nearly all U.S. plants should be operational in the coming week, but labor shortages continue to limit industry volumes to 70% to 80% of normal. U.S. protein inventories are depleted, with retail and foodservice buyers drawing on the same limited supply.”
Rabobank Group is a global financial services leader providing wholesale and retail banking, leasing, and real estate services in more than 40 countries worldwide. Founded over a century ago, Rabobank today is one of the world’s largest banks with over $640 billion in assets. In the Americas, Rabobank is a premier bank to the food, agribusiness and beverage industry, providing sector expertise, strategic counsel and tailored financial solutions to clients across the entire food value chain. Additional information is available on our website or on our social media platforms, including Twitter and LinkedIn
Senior Beverage Analyst Jim Watson discusses how the Covid-19 pandemic has led many consumers to drink more specialty and high-end coffee at home.
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