Rising demand for food services and strong growth in agricultural loans
From the Farm Information Network, I’m Bob Larson with your agri-food update.
** The demand for restaurants is accelerating for a scorching summer.
In fact, seasonally adjusted restaurant and bar spending in May totaled a record $ 67 billion, up from $ 66 billion in February.
Michael Swanson, chief agricultural economist at Wells Fargo, told www.thepacker.com that May has limited capacity and many bars and restaurants are still understaffed, hampering sales.
Swanson says consumer demand for restaurant meals will persist for months as consumers book trips and have more social gatherings.
** Despite the global economic slowdown during the 2020 pandemic, total agricultural loans from U.S. agricultural banks remained strong at $ 98.6 billion, down just 1.8% from the previous year.
According to www.agrimarketing.com, the American Bankers Association’s annual farm bank performance report attributed the change to a 6.7% drop in farm production lending.
In contrast, outstanding loans secured by farmland rose 2.1% to $ 56.7 billion.
** A sharp drop in pork prices in China is a major concern for the pork exporting countries of the world, including the United States
American Meat Export Federation economist Erin Borror says the key to sustaining overall export growth is to rebuild pork consumption in markets outside of China.
Borror says that when demand for pork in China increased following the African swine fever outbreaks, pork consumption declined in other important markets.
She says that as the least âChina-dependentâ pork exporter, there are great opportunities to replenish that demand.