by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
Agrimarketing : November December 2009
14 Agri Marketing November/December 2009 AGRI-MARKETERS' UPDATE AG INDUSTRY POSITIVE ABOUT 2010 by the Agri Marketing Editors Amajority of agribusiness leaders polled earlier this month reported they are optimistic about their own agribusiness in 2010 compared to 2009, with some asserting that they were "very optimistic" about the near future. The poll, conducted by Agri Marketing magazine and AdFarm, a full-service communications firm, surveyed leading executives from a wide range of agricultural companies operating in U.S. markets. "We didn't expect such a strong majority of positive responses" says Lynn Henderson, publisher of Agri Marketing. "We surveyed quite a range of executives --- from multinational corporations to small, privately held firms --- and we expected, at best, a neutral outlook for 2010. But most of them foresee improvements for their business." 57% OPTIMISTIC Overall, 12% of the respondents were very optimistic about their agribusiness, 45% were optimistic, 35% were neutral, 7% were somewhat negative and 2% were very negative (Table 1). While 37% reported optimism about the general agricultural economy in 2010, 52% were neutral, 7% were somewhat negative and 4% were very negative. There was some difference in outlook among companies serving crop producers (65%) compared to those serving the livestock marketplace (40%). Only one third (35%) of respondents held similarly optimistic views for the overall U.S. economy in 2010. Roger Reierson, Managing Partner of AdFarm, says it's reassuring to have forecasts of a recovery from this group of leaders from companies serving agriculture. "When this group of corporate executives says there's going to be an increase in acres in 2010, I'm fairly certain that is what we are going to see," says Reierson. "It's as accurate as their companies' financial forecast. Just like our firm, they must be completely tuned into agriculture to succeed." FORECASTS Nearly half (48%) of respondents expect there will be an increase in corn acres for 2010 and 61% predicted an increase in soybean acres (Table 2). While the average corn selling price is expected to average $3.30 this year, the survey respondents forecast increases, with nearly a quarter of the executives expecting the average selling price to be above $4/bushel next year. Most expected soybean prices to remain steady at an average price around $9.50/bushel, but an optimistic 12% expected prices to rise next year, breaking the $10 mark. Other forecasts from the survey: • Crop-oriented companies are introducing an average of 28 new products, livestock-oriented companies are introducing an average of 14. • Cotton prices were expected to remain at historic lows with 41% expecting a decrease in overall cotton acreage. • 77% expected hard red wheat prices to remain steady or increase from a 2009 average of $5.20/bushel (Table 4). • Continued slight decreases are expected in the size of cow/calf and fed beef herds with steeper decreases in sows and fed hogs. • More than 53% of respondents predicted the average price for milk would rise to $15/lb or higher from the low average of $12.40/lb in 2009. • 59% of executives from companies serving livestock predicted an increase in their company's revenues, while 70% of crops-focused companies expected higher earnings. For a complete copy of the "2010 Agribusiness Leaders Outlook Poll," e-mail your request to AudreyE@AgriMarketing.com There is no charge for the report. AM Table 2 Table 1 Table 4
Marketing Services Guide 2010
World Ag Congress