This year’s Executive Conference held in Las Vegas from May 5 – 7 for senior leaders in the animal protein sector, was an informative show of the industry’s and what we can expect from the protein sector in the coming years.
“We feed the ever-growing needs of the entire population,” said Russ Whitman, Expana’s Director of Market Reporting, in his opening remarks.
Despite challenges related to animal health, regulatory shifts, and geopolitical tensions, the industry has demonstrated remarkable perseverance.
“A seasoned observer will also recognize the resilience in this room,” Whitman said. “Thank you for being part of an industry that feeds the world day in and day out, no matter what comes your way.”
An optimistic outlook for the U.S, economy
Economist Michael Swanson expressed a positive outlook on the U.S. economy and its implications for the animal protein market.
“Meat is a big-ticket item, but the consumer finds value,” he noted.
“Last year the U.S. consumer spent over 230 billion dollars on beef – half a trillion dollars [across the entire] meat sector,” he explained.
Although there remains a narrow gap between earnings and spending, Swanson observed, “Americans are natural-born spenders.”
Despite economic uncertainty in the broader agricultural economy, animal protein is holding strong.
“Looking at net farm income, corn and soybean [income] is down – meat, animal and milk income is up,” Swanson explained. “People can afford these prices and people do want to eat animal protein.”
Uncertainty in the geopolitical landscape
Uncertainty was a recurring theme in a panel featuring experts from the World Bank, the American Farm Bureau Federation, and the USA Poultry & Egg Export Council (USAPEEC).
Greg Tyler of USAPEEC described Mexico as a “shining star” for U.S. exports last year but acknowledged future risks due to tariffs.
“If Mexico introduces retaliatory tariffs, you may have market loses, as Brazil is there waiting to just pounce.”
India, Indonesia, and African nations such as Kenya and Nigeria were identified as emerging markets for U.S. poultry, though Highly Pathogenic Avian Influenza (HPAI) remains a barrier to international trade.
Sam Kieffer from the American Farm Bureau stressed the importance of advocacy. “The best thing anyone can do in ensure [people in power] understand the anxiety and concern in the sector.” According to Kieffer, decisions are being made based on the last voice that expresses an opinion, meaning any conversation can have real value to the wider sector.
C-Suite leaders discuss the sector’s top challenges
Senior executives from across the value chain gathered to discuss pressing issues and strategies for leadership during uncertain times.
James Butler, Chief Supply Chain Officer at Brinker International (parent company of Chili’s), identified “a food safety incident or a quality incident” as his biggest concern. He believes an event like this in the restaurant sector could impact years of hard work and impact growth.
“I would be remised if I did not mention animal disease like avian influenza,” Pat Meehan, CEO of Kreher Eggs shared. However, the workforce is also an issue for Meehan: “Our people are some of our greatest assets.” Challenges with training, development and retaining staff were touched upon.
The conversation moved on to leading teams in times of volatility. Butler’s approach is to encourage his team to come up with solutions to problems they encounter themselves, asking them to: “Tell me what the challenge is. Give me 3 options and give me one recommendation.”
Josh Cobb, Executive Vice President, Food and Packaging at Wendy’s Quality Supply Chain Co-Op agreed, “Empower your team to come up with a solution. Give them opportunities to make adjustments.”
Tom Healey, Former VP, International Supply Chain, at Dairy Queen has “always been a firm believer in investing in people,” allowing them to develop by asking, “What do you need? What are you missing?”
“As your boss I am supposed to set you up for success,” he added.
Beyond HPAI: Other disease threats loom
HPAI has taken a significant toll on the poultry and egg sector, with over 160 million commercial birds lost since 2022. Dave Juday, Founder of The Juday Group, noted, “This is a huge business expense and if there was not some kind of government support the sector would be hit a lot harder.”
The disease’s spread to dairy cows and at least 70 human cases since March suggests the situation is ongoing. However, there are other diseases that the sector should be watching carefully. Dustin Pendell, Professor at Kansas State University shared that Foot and Mouth Disease is on his radar.
“There is a new strain in Iraq and Bahrain. We have seen outbreaks in northern and southern Africa, the middle east and Europe. It spreads fast and [it is affecting] international trade.”
“We have also seen outbreaks of African swine fever (ASF) in the same areas as foot and mouth”, he added.
Brian Earnest, Lead Economist – Animal Protein at Cobank, noted that the previous ASF epidemic significantly altered trade flows, when due to the reduction in domestic pork, China opened up to imports of pork and beef. “The consumer in China realized not only that they really liked beef, they really liked U.S. beef,” demonstrating the opportunities epidemics can bring.
“The most recent challenge is the New World screwworm which impacts cattle,” Pendell shared. Given the disease halted live animal imports from Mexico, there has been an impact on markets. There are lessons to be learned from some of the historic epidemics we have tackled.
Pendell emphasized the value of historical lessons from the 2015 HPAI pandemic. “There was a public/ private collaboration to control the disease [in 2015]. Using that public/ private partnership we were able to develop a response plan for ASF when that outbreak happened in Asia [a few years later].”
Consumers re-embrace protein
Animal protein is seeing a resurgence among consumers, according to a panel on engaging future audiences.
Leslee Oden, President and CEO of the National Turkey Federation, referenced a New York Times article asking, “Are you eating enough protein?” She believes the animal protein sector is well-positioned to benefit from current consumer movements.
Michele Murray, Senior VP of Food, Agriculture, and Ingredient at marketing agency Ketchum, discussed consumer segments within the Make America Healthy Again (MAMA) movement.
“Across the country it represents 13% of the U.S. population. There are 2 groups of MAHA women. Younger subset focused on health conditions and then the older subset which is more politically driven. [Both of these] have different needs and interests.”
“We are seeing health and wellness as a driver for making decisions. We are going to see the consumer turn the label over and ask more questions,” she added.
When considering marketing strategies Jerry Shen, VP of Marketing, Dave’s Hot Chicken said it was key to “identify who your audience is – you cannot be everything to everybody.”
Murray also highlighted the importance of trust. “Only 10% of consumers feel we [in the food sector] are transparent enough. Consumers believe companies are more about profit than their health. Companies have an opportunity to benefit from that, but we need to start with trust building and credibility.”
Her advice to the audience: “You are who you are and who you are is who you should represent. Right now, meat is back”.
To find out more about our upcoming events, head to our Events page.
