World Perspectives
livestock

Livestock Round Up: Broiler Feeding Margins

Total broiler production in 2020 was 44.57 billion pounds, up 1.5 percent over 2019 despite the COVID interruptions to slaughter facilities. This is the 18th year out of the last 20 where year-over-year broiler meat production increased. The two exceptions were in 2009 and 2012, which were impacted by high feed prices.

Reviewing the most recent annual SEC 10-K financial reports, chicken companies are advising about the impact of feed costs:

10 percent increase in corn and soymeal related to approximately $300 million in increased costs $0.10/bushel increase in corn or $10/MT increase in soybeans equates to roughly $25 million in EBIT

Of course, the impact of feed prices depends on the purchasing and hedging of feed costs. Taken on...

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From WPI Consulting

Illuminating the value of technical research

On behalf of a commodity producer organization, WPI evaluated the outputs from a project that featured a $5 million investment into technical research over multiple years. WPI’s team captured the results of this extensive effort and synthesized them for presentation to the organization’s governing board; among the findings uncovered and presented for the first time was the development of genomic traits proven, via rigorous testing, to provide crop yield advantages of 50 percent or more to U.S. farmers in times of drought. Capturing measurable results from long-term efforts can be challenging. Educating clients on the dynamics of success measurement when quantifiable results are not readily available requires deep client-consultant collaboration and an ability to consider both near- and long-term client aspirations with market/policy dynamics – attributes that WPI brings to every consulting engagement.

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