Prepare for Surging Feed Costs in 2021 — Economist

Across the cattle, hog and poultry sectors, producers could see increased feed costs to the tune of 12% in 2021 as global trading partners — namely China — look to beef up feed stocks to sustain rebuilding livestock herds, especially hogs. The world is starting to face an increasing animal protein shortage, and that trend means 2021 will be a year of building across many livestock sectors, fueling the demand that will prop up feed grain costs. The most notable increases will be for soybean meal and anything derived from corn as those markets end 2020 on bullish notes. According to USDA data, that likely means domestic beef, pork and chicken production will grow at its slowest rate since 2014, according to an analysis released this week.