New data indicates the industry is more confident than it was at the beginning of 2021.
The poultry industry’s confidence is not faltering in the face of continual market challenges.
In the third quarter of 2021, all three of the top-line indices held steady or increased. The present and future opportunities led the way with new hires and replacements, although a reduced labor supply might soon offset this enthusiasm.
Confidence stays high
The WATT/Rennier Poultry Confidence Index’s Overall Index was 149 (1985=100) in the third quarter, an increase from 120 the previous quarter. The Present Situation Index – based on respondents’ assessment of current business and labor market conditions – rose to 158 from 140. The Expectations Index – based on consumers’ short-term outlook for income, business and labor market conditions – grew slightly to 134 from 132.
Inflationary pressure building
The continued confidence of our respondents is inspiring. Obstacles are perceived and acted upon as an opportunity rather than a threat.
Optimism is surprising in the face of the price and supply challenges the industry faces. Prices of consumer goods, feedstuffs, building supplies, energy and more are rising. Chicken prices elevated due to both strong domestic and export demand, worker shortages in processing and transportation and challenges with broiler breeder fertility.
Consumer confidence slipping
In August 2021, The Conference Board’s Consumer Confidence Index indicated consumer confidence fell to its lowest level in six years. Americans are worried about what they perceive as a fragile economic recovery and uncertain job market.
Given these continuing challenges, the confidence of the poultry industry is amazing. A combination of the three top-line indices was at its highest level since the first quarter of 2018. The Future Opportunities Index was at its highest level since 2014.
However, this could change soon. As one survey respondent said, “limited workforce availability is the biggest issue in the poultry industry today.”
Par Greg Rennier (13/09/2021)
Source : wattagnet.com
Image : vecteezy.com