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Agribusiness Faces Challenges in Next Five Years, says Rabobank

29 December 2016

US - The Rabo Food & Agribusiness Research and Advisory (FAR) group have released a report on the future of the agriculture sector, focusing on the pivotal next five years in the agribusiness industry.

Based on the results of the research, Rabobank sees financial incentives for producers to consolidate, streamline and respond to consumer preferences.

“The industry is not without its challenges,” notes Senior FAR Analyst Sterling Liddell. “We’re anticipating changes across the agriculture industry and the need for producers to respond and adapt in order to survive and succeed.”

Farm economics reshaping the North American Food Sector

After three years of consecutive losses, farmers have used much of their liquidity and are forced to make financial decisions on how to structure debt and leverage equity.

The protein sector

Due to a decline in grain prices across the US, the protein sector is expanding and expected to continue to expand in 2017. Expansion is likely to occur in neighboring Mexico as well as Canada, but to a lesser extent.

The dairy sector

Competition from non-dairy, plant-based alternatives is growing in North America. To successfully navigate this trend, the industry must position dairy as integral to every-day food consumption.

The beverage sector

There is a decline in core carbonated soft drinks and companies in the industry are seeking to grow in adjacent categories including coffee and value-added water.

The sugar sector

It is anticipated that US food processors in this sector will continue moving towards non-GMO sources, such as local and imported cane sugar.

ThePoultrySite News Desk



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