A new report by AgriBank projects livestock, dairy, and egg sector margins to continue adjusting downward from record levels set in 2014. The report on 15 Midwest states called the egg industry “the largest percentage loser” due to bird flu and record high prices. However, the report says the turkey industry is rebounding as flocks are rebuilt, and prices remain high. AgriBank’s Jeff Swanhorst says, “2015 was, for the most part, a transition year to the reality of lower margins.” For 2016, he says the dominant themes in agriculture will be the impact of several major categories entering or continuing their expansion phases of the production cycle, the increasing dollar’s negative impact on exports, the potential for additional disease events, and domestic consumer behavior. The report did say weather remains a wildcard as the transition to La Niña from the historically strong El Niño could bring major drought conditions across the Corn Belt region late in the coming growing season.
Source: NAFB News Service