Meat&Poultry - January 2012 - 20

A pivotal year
As 2012 begins, industry has high hopes in the face of many uncertainties
BY ERICA SHAFFER
eshaffer@sosland.com

T

he meat and poultry industry welcomes a turnaround in the chal-

growth of gourmet burgers and chain restaurants that specialize in burgers indicate the burger boom is likely to continue in 2012. The poultry industry is hoping for a sustained profit by spring, according to industry analysts. Production cutbacks that began in 2011 will carry over into 2012. Smaller available supplies will decrease the industry’s need for corn and soybean meal. Prices for both commodities have increased. Also, banks that lend to the poultry industry will be pushing companies to better manage working capital. US consumers will turn to pork as a cheaper alternative to beef, although retail prices will remain high. Pork production is forecast at 23.134 billion lbs. compared to 22.753 billion lbs. in 2011. Pork will most likely be the only major protein to experience larger production and available supplies in 2012.

Small operations will feel the changing dynamics most acutely in the meat and poultry industry. Regulatory pressure from state and local governments will push small businesses hard in 2012. Ingredient costs continue to rise, challenging processors to be creative as they source ingredients for processed meat products. Rising fuel and feed costs will also put pressure on small meat and poultry operations in 2012. Small business owners in the industry will also keep close watch on movement in federal immigration policy as they face difficulties retaining experienced employees.

lenging economic environment that has characterized the past four years. But obstacles to steady growth remain. Industry has made across-the-board reductions in available red meat and poultry supplies. Beef supplies are

Wholesale prices, which already have reached historic highs, will be even higher in 2012.
forecast to decline in 2012 to 54.1 lbs. per person, down 3.3 lbs. from the 2011 estimate. The implications of this trend will be felt throughout the supply chain. Wholesale prices, which already have reached historic highs, will be even higher in 2012. The drop in supplies will be most apparent in the ground beef complex. The

Growing global population
While analysts and government agencies are forecasting a decline in domestic consumption of some proteins,

20

• Meat&Poultry • January 2012 • www.MeatPoultry.com


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Meat&Poultry - January 2012

Table of Contents for the Digital Edition of Meat&Poultry - January 2012

Meat&Poultry - January, 2012
Contents
Commentary - Oozing optimism
Business notes - QSRs stop using ammonium hydroxide technology for beef
Business notes - Cargill to use HPP, resumes ground turkey processing
Business notes - Farbest to build new turkey plant in Indiana
Business notes - Seaboard Foods names new president, CEO
Business notes - Land O’Frost to acquire Wimmer’s Meats
Business notes - Hormel executive announces retirement
Business notes - Danish Crown appoints chairman, deputy chairman
Business notes - Sara Lee to expand Missouri plant
Washington - Regulatory hurdles ahead
2012 Industry Outlook - A pivotal year
2012 Outlook - Pecking orders
2012 Outlook - Where’s the beef?
2012 Outlook - Mining for global gold
2012 Outlook - Regulatory roadblocks
Farm-to-Fork - Grass-based growth
Turkey processing - Beyond the belly
Food Safety - Use judiciously
Traceability - Nature’s bar codes
Packaging - Waste not, want not
Ingredient Solutions - Sizing up sea salt
Conference Previews - Focused on Education
Names in the News
New Product Showcase
Classified Advertising
Advertisers
The Insider
Meat&Poultry - January 2012 - Meat&Poultry - January, 2012
Meat&Poultry - January 2012 - 2
Meat&Poultry - January 2012 - 3
Meat&Poultry - January 2012 - Contents
Meat&Poultry - January 2012 - 5
Meat&Poultry - January 2012 - 6
Meat&Poultry - January 2012 - 7
Meat&Poultry - January 2012 - Commentary - Oozing optimism
Meat&Poultry - January 2012 - 9
Meat&Poultry - January 2012 - Business notes - QSRs stop using ammonium hydroxide technology for beef
Meat&Poultry - January 2012 - 11
Meat&Poultry - January 2012 - Business notes - Farbest to build new turkey plant in Indiana
Meat&Poultry - January 2012 - 13
Meat&Poultry - January 2012 - Business notes - Seaboard Foods names new president, CEO
Meat&Poultry - January 2012 - Business notes - Land O’Frost to acquire Wimmer’s Meats
Meat&Poultry - January 2012 - Business notes - Sara Lee to expand Missouri plant
Meat&Poultry - January 2012 - 17
Meat&Poultry - January 2012 - Washington - Regulatory hurdles ahead
Meat&Poultry - January 2012 - 19
Meat&Poultry - January 2012 - 2012 Industry Outlook - A pivotal year
Meat&Poultry - January 2012 - 21
Meat&Poultry - January 2012 - 2012 Outlook - Pecking orders
Meat&Poultry - January 2012 - 23
Meat&Poultry - January 2012 - 24
Meat&Poultry - January 2012 - 25
Meat&Poultry - January 2012 - 2012 Outlook - Where’s the beef?
Meat&Poultry - January 2012 - 27
Meat&Poultry - January 2012 - 28
Meat&Poultry - January 2012 - 29
Meat&Poultry - January 2012 - 30
Meat&Poultry - January 2012 - 31
Meat&Poultry - January 2012 - 2012 Outlook - Mining for global gold
Meat&Poultry - January 2012 - 33
Meat&Poultry - January 2012 - 34
Meat&Poultry - January 2012 - 35
Meat&Poultry - January 2012 - 36
Meat&Poultry - January 2012 - 37
Meat&Poultry - January 2012 - 38
Meat&Poultry - January 2012 - 2012 Outlook - Regulatory roadblocks
Meat&Poultry - January 2012 - 40
Meat&Poultry - January 2012 - 41
Meat&Poultry - January 2012 - 42
Meat&Poultry - January 2012 - 43
Meat&Poultry - January 2012 - Farm-to-Fork - Grass-based growth
Meat&Poultry - January 2012 - 45
Meat&Poultry - January 2012 - 46
Meat&Poultry - January 2012 - 47
Meat&Poultry - January 2012 - Turkey processing - Beyond the belly
Meat&Poultry - January 2012 - 49
Meat&Poultry - January 2012 - 50
Meat&Poultry - January 2012 - 51
Meat&Poultry - January 2012 - 52
Meat&Poultry - January 2012 - 53
Meat&Poultry - January 2012 - Food Safety - Use judiciously
Meat&Poultry - January 2012 - 55
Meat&Poultry - January 2012 - 56
Meat&Poultry - January 2012 - 57
Meat&Poultry - January 2012 - 58
Meat&Poultry - January 2012 - 59
Meat&Poultry - January 2012 - Traceability - Nature’s bar codes
Meat&Poultry - January 2012 - 61
Meat&Poultry - January 2012 - 62
Meat&Poultry - January 2012 - 63
Meat&Poultry - January 2012 - 64
Meat&Poultry - January 2012 - 65
Meat&Poultry - January 2012 - 66
Meat&Poultry - January 2012 - Packaging - Waste not, want not
Meat&Poultry - January 2012 - 68
Meat&Poultry - January 2012 - 69
Meat&Poultry - January 2012 - 70
Meat&Poultry - January 2012 - 71
Meat&Poultry - January 2012 - 72
Meat&Poultry - January 2012 - 73
Meat&Poultry - January 2012 - Ingredient Solutions - Sizing up sea salt
Meat&Poultry - January 2012 - 75
Meat&Poultry - January 2012 - 76
Meat&Poultry - January 2012 - 77
Meat&Poultry - January 2012 - Conference Previews - Focused on Education
Meat&Poultry - January 2012 - 79
Meat&Poultry - January 2012 - Names in the News
Meat&Poultry - January 2012 - New Product Showcase
Meat&Poultry - January 2012 - 82
Meat&Poultry - January 2012 - 83
Meat&Poultry - January 2012 - Classified Advertising
Meat&Poultry - January 2012 - 85
Meat&Poultry - January 2012 - 86
Meat&Poultry - January 2012 - 87
Meat&Poultry - January 2012 - 88
Meat&Poultry - January 2012 - Advertisers
Meat&Poultry - January 2012 - The Insider
Meat&Poultry - January 2012 - 91
Meat&Poultry - January 2012 - 92
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