Poultry producers face tightening profit margins and rising feed costs

Poultry producers will have to cope with tightening profit margins and high feed costs, according to Rabobank’s quarterly poultry report.

The bank’s food and agribusiness research and advisory group is predicting that profitability swings will be an ongoing problem for the poultry industry globally, which saw similarly sharp increases in feed costs in 2008 and 2010.

In developed countries in particular, the industry lacks adequate power to pass on feed cost increases.