Agribusiness Update for Friday 05/02/16
Pilgrim's Pride Corporation reported it's 2016 first quarter net income at $118.4 million, down 42 percent from a year ago. Net sales in the first quarter were $1.96 billion, down 4.3 percent from last year. Results were actually a small rebound from a bad fourth quarter in 2015. The results also come just one day after the company recalled more than 4.5 million pounds of fully cooked chicken products. The company attributes the improved numbers to a jump in US and Mexican business in the first quarter of this year after a weak fourth quarter.
The recently release US Grains Council "Outlook Colombia 2030" report found new market development opportunities in Colombia. Opportunities in the market come about, as feed imports are likely to expand dramatically in the country, even faster than historical trends suggested. The bullish outlook is due to continued economic growth in Colombia that will expand the middle class and lead to increased meat consumption. The country's lagging crop production performance is projected to continue, which means Colombia's livestock producers will have to rely on imports to support their expected expansion.
That's today's Agribusiness Update from the Ag Information Network of the West.