MEAT+POULTRY - November 2024 - 16

INDUSTRY OUTLOOK SURVEY
2025 outlook by
company size
2%
2 44 54
12
54%
44%
Large companies
($100M+)
42 46
12%
42%
46%
Medium/Small companies
(<$100M)
VERY
NEGATIVE
" We have 209 professionals that are saying, 'We're
generally very positive,' and we don't see that every year
when we have done this kind of research in the meat
industry, " she said. " There have been some tough years
when there wasn't nearly as much positivity. "
2025 business activity
expectations
UP
57%
53%
STEADY DOWN
47%
49%
BUSINESS OPS EXPECTATIONS
When asked about their own company's operations, the
survey asked processors to rate various aspects of their
2024 business activity compared to the previous year's
as increasing, steady or decreasing. Categories included:
revenue, prices charged to customers; level of production;
capital spending; and overall costs, including hourly wages,
energy, packaging and ingredient costs.
47%
35%
45%
43%
8%
COMPANY
REVENUE
2%
PRICES
CHARGED TO
CUSTOMERS
6%
PRODUCTION
LEVELS
8%
CAPITAL
SPENDING
In terms of revenue in 2024, about half (49%) of industry
professionals said they expected revenue to increase this
year and just 16% anticipated revenue decreasing. The
survey also reflected that nearly 60% reported charging
their customers more for their products this year and about
40% responded that they are holding prices steady. Looking
ahead to next year, the largest share of respondents (57%)
was optimistic, expecting their company's revenue to
increase in 2025 over this year and pricing to increase
among fewer companies, at 53%. Forty-five percent of
respondents expected prices to remain steady in 2025.
When asked about capital expenditures in 2024, 52%
of respondents said their companies would spend more
this year compared to 2023. An additional 37% planned to
maintain spending at the previous year's level.
Decreasing capital spending in 2024 was reported for
just 10% of respondents. Looking ahead to 2025, processors
whose capital expenditures are expected to decrease,
included a slightly lower 49% of companies represented
16 MEAT+POULTRY | 11.24 | www.meatpoultry.com
VERY
POSITIVE
SOMEWHAT
POSITIVE
SOMEWHAT
NEGATIVE
were overwhelmingly positive about 2025, with 88%
reporting " somewhat positive " to " very positive " outlooks,
about 5% more than that segment's outlook for 2024.
Given some of the challenges addressed by other
questions in the survey, including labor shortages and
rising costs of doing business, including energy, Hellmer
said this level of positivity is noteworthy and illustrates the
resilience of the industry across company sizes. That is not
to say there are not some yellow flags in certain parts of the
industry, including the ongoing challenges facing the beef
industry and how that is affecting the processing sector this
year and into the future.
" There have been some tough
years when there wasn't
nearly as much positivity. "
- MARJORIE HELLMER
http://www.meatpoultry.com
MEAT+POULTRY - November 2024

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