Second-half hurdles

摘要

The three main sectors of the US meat and poultry industry face different hurdles in the second half of 2022. The biggest challenge facing the beef processing sector will come late in the year as ongoing liquidation starts to show up in smaller supplies of both fed and non-fed cattle. Pork processors face the challenge of getting their margins back into the black after losses that began in early March. Chicken processors face the ongoing challenge of protecting their flocks from avian influenza (AI). The main challenge common to all sectors is food inflation that is eating into Americans' budgets and reducing consumer confidence in the economy. Inflation in May was 8.6% above what it was a year earlier, according to federal data. While few economists believe the economy will slide into recession anytime soon, concerns about that occurring could alter consumers' protein buying patterns the rest of the year.