Rabobank Issues Report on Reshaping Food Sector

Dan Industry News Release

The Rabobank Food and Agriculture Advisory Group issued a report on how the future is shaping up for North American agriculture, especially focusing in on agribusinesses over the next five years. The results show farmers will have an incentive to consolidate, streamline their operations, and respond to consumer desires. Senior Analyst Sterling Liddel says, “We’re expecting changes across the agriculture industry and the need for producers to respond and adapt in order to survive and succeed.” The report says three years of losses have forced farmers to use up most of their liquidity and they have tough decisions ahead about structuring debt and equity. Due to a decline in grain prices, the protein sector is expanding and should continue to do so next year. The dairy industry is facing increasing competition from non-dairy, plant-based alternatives across America. To be successful, the industry needs to promote dairy as an integral part of American food consumption. The report also says sugar processors will continue to move towards more non-GMO sources.

From the National Association of Farm Broadcasting news service.