July 6, 2023

2023 USPOULTRY Financial Management Seminar examines current trends and challenges

The 2023 USPOULTRY Financial Management Seminar was recently held on June 28-30 in Amelia Island, Florida, the United States.

The event provided attendees with a variety of topics related to financial management in the poultry and egg industry. Subject matter, ranging from regulatory updates, cybersecurity, tax updates and accounting principles in live production and auditing, was covered. The diverse selection of "Experience Sharing Sessions" ensured that attendees came away with a well-rounded perspective on the most pressing issues facing financial professionals in poultry and egg companies.

Greg Tyler, USAPEEC's president and chief executive officer, provided an overview of the evolution of the export market for US poultry and egg products, specifically addressing trends in chickens, turkeys, ducks and eggs. After providing an update on export metrics, he addressed global trade issues. One of the leading issues with respect to global trade in the poultry and egg industry has been highly pathogenic avian influence (HPAI). Despite the obstacles presented by HPAI, there were fewer country-wide bans compared to the 2015 outbreak due to improved regionalisation. Tyler also discussed some of the work USAPEEC has been doing to enhance and strengthen global markets for US poultry and eggs.

Andy Rojeski, head of strategy, investor relations and net zero programmes at Pilgrim's, spoke about the wave of sustainability initiatives taking place across the economy and how they are affecting agriculture producers. Environmental, social and governance (ESG) investing was also discussed, with Rojeski noting that there are arguments for and against the strategy. Acknowledging that many consumers have little understanding of the work being done in agriculture, he provided a roadmap for implementing a sustainability strategy. The emphasis on sustainability coming from regulators, customers, consumers and organisations is unlikely to decline, requiring a strategic approach to implementing sustainability strategies throughout the organisation.

Trey Stokes, associate director at Alliant Cybersecurity, emphasised the importance of implementing and appropriately funding cybersecurity programmes. He presented risk mitigation strategies for the range of threats facing companies, including ransomware, supply chain attacks, social engineering campaigns and business email compromises, among others. One key takeaway was the importance of understanding vulnerabilities and tailoring an appropriate response that fits into the overall corporate strategy. The evolution of artificial intelligence was also discussed in the context of what risks it can present to companies as well as ways that it can assist with achieving business goals.

Brian Earnest, lead animal protein analyst for CoBank ACB, provided an economic update. After looking at the causes of the rise in inflation, the macroeconomic situation was examined, including interest rate changes and the potential for a recession. Earnest also discussed the overall agricultural economy, transitioning into specific analysis of poultry industry metrics. He cautioned that uncertainty would remain in the market as outside influences continue to present challenges.

- USPOULTRY