Greg RennierGreg Rennier, Ph.D., is president of Rennier Associates Inc. To contact Rennier, email [email protected].From the Author - Page 4Broilers & TurkeysPoultry Confidence Index shows continued optimism in poultry industryRespondents to the Poultry Confidence Index survey remained optimistic about lower grain prices, restrained production and higher beef prices, continuing the positive outlook from the previous quarter.Poultry FeedRepeal of Renewable Fuel Standard not expected, poll indicatesNearly half of the respondentsin a recent Poultry Confidence Index poll do not expect the Renewable FuelStandard to be repealed by the federal government within the next six months.In the same poll, slightly less than 25 percent of those surveyed believe theRenewable Fuel Standard’s repeal is likely.Broilers & TurkeysA period of sustainable confidence in the poultry industry?One year ago the poultry industry was expressing confidence in its future. A subsequent drought then brought high grain prices. Optimism quickly faded.Broilers & TurkeysPoultry Confidence Index survey continues trend of optimismOptimism in the poultry industry was at a historic low less than one year ago. Since then, confidence has risen above normative levels as key factors have stabilized (for now).Broilers & TurkeysHigher tablet ownership in poultry industry than general populationSlightly more than one out of three respondents own a computer tablet (34 percent) according to a recent WATT-Rennier Poultry Confidence Index survey. Only 25 percent of U.S. adults own a tablet.Broilers & TurkeysGrain prices top poultry issue for early 2013A WATT-Rennier Poultry Confidence Index survey poll shows that nine-out-of-ten respondents identified grain prices as the top issue for the U.S. poultry industry for the next six months.HomePoultry Confidence Index shows improvement, optimism in poultry industryThis was not the case three months ago when pessimism in the poultry industry was at an all-time high, fueled by ramifications from the 2012 drought. However, in the fourth quarter 2012 holiday version of the Poultry Confidence Index, the Big-3 indices all showed dramatic improvement.HomeDrought shrivels poultry industry confidenceIn the second quarter of 2012, US poultry industry confidence hit an all-time high, but with the grain crop hard hit by drought confidence is now near rock bottom. When coupled with rising energy costs – gasoline prices increased 27 cents per gallon during a single month – and the inability to pass on costs even though food prices were up 6 percent during July, poultry producers are forced into unprofitability.HomeSix economic factors boosting poultry sector confidenceOn many levels, confidence in the poultry sector has never been higher since the Poultry Confidence Index was launched 16 years ago. The Overall Index now stands at 140.6 (1996=100), up from 119.8 last quarter. In addition, all five sub-indices – led by respondents' expectations – exceeded the 100-point norm for the first time since 2005. Cumulatively, these were the five highest scores ever.HomePoultry group’s economic confidence higher than for US consumersA WATT-Rennier Poultry Confidence Index poll (take the new survey) shows that nearly 60 percent of the respondents in the poultry industry think they will be better off financially in the next 12 months. However, only 40 percent said they were confident in U.S. financial markets. These numbers were reversed for the general consumer population. Among this wider audience, a majority were confident in the U.S. financial markets while only a minority felt they would be financially better over the next year.HomePoultry production cuts pay dividends for companiesThe Poultry Confidence Index, which had steadily risen throughout 2011 after hitting rock bottom a year ago, rose dramatically in this first quarter of 2012. The Overall Index now stands at 119.8 (1996 = 100 baseline), up from 94.3 the previous quarter. The Present Situation Index increased to 101.8 from 73.8, while the Expectations Index rose to 131.8 from 107.9 since the fourth quarter of 2011.HomePoultry production cuts stimulate industry optimismThe WATT/Rennier Poultry Confidence Index (PCI) rose to 94.3, up from 79.0 the previous quarter. Respondents cited production cuts coupled with increased demand as reasons for optimism.Previous PagePage 4 of 6Next Page