12-21-16 Rabobank Rabo AgriFinance Analyzes Forces Reshaping the North American Food Sector

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Rabobank Rabo AgriFinance Analyzes Forces Reshaping the North American Food Sector

Latest report examines long-term prospects for food and agribusiness industry

NEW YORK (December 20, 2016) – The Rabo Food & Agribusiness Research and Advisory (FAR) group today released a report on the future of the agriculture sector, focusing on the pivotal next five years in the agribusiness industry. Based on the results of the research, Rabobank sees financial incentives for producers to consolidate, streamline and respond to consumer preferences.

“The industry is not without its challenges,” notes Senior FAR Analyst Sterling Liddell. “We’re anticipating changes across the agriculture industry and the need for producers to respond and adapt in order to survive and succeed.”

Farm economics reshaping the North American Food Sector

After three years of consecutive losses, farmers have used much of their liquidity and are forced to make financial decisions on how to structure debt and leverage equity.

The protein sector

Due to a decline in grain prices across the U.S., the protein sector is expanding and expected to continue to expand in 2017. Expansion is likely to occur in neighboring Mexico as well as Canada, but to a lesser extent.

The dairy sector

Competition from non-dairy, plant-based alternatives is growing in North America. To successfully navigate this trend, the industry must position dairy as integral to every-day food consumption.

The beverage sector

There is a decline in core carbonated soft drinks and companies in the industry are seeking to grow in adjacent categories including coffee and value-added water.

The sugar sector

It is anticipated that U.S. food processors in this sector will continue moving towards non-GMO sources, such as local and imported cane sugar.

Based on measureable factors, such as consumer trends and economic conditions, Rabo Food & Agribusiness Research and Advisory (FAR) group provides guidelines for strategic future positioning for the agriculture industry.

The full report, “The North American F&A Sector Moving to the 2020s” is available in full by request.

About Rabobank International Food & Agribusiness Research and Advisory (FAR)

The Rabobank International Food & Agribusiness Research and Advisory (FAR) group is a global team of more than 80 analysts who monitor and evaluate global market events that affect agriculture worldwide. This international team works to collect key insights into commodity markets; conduct in-depth analysis of the factors that drive sector success (or failure); and examine the megatrends that ultimately influence clients’ business strategy. These analysts are internationally respected experts in sectors from protein to produce, inputs to oilseeds, and their knowledge is shared with Rabobank customers.