Shaking It Up, Watering The Plants, and Dancing On The Floor
Finally, we close with brief comments on Shaking It Up, Watering the Plants, and Dancing On The Floor. First, retail sales of Ready To Drink Shakes accelerated massively over the past two months. From just 5% to 6% year-over-year growth in October, growth exceeded 10% in December. For the industry, we see consumers Shaking It Up. Second, farmer spending continues to follow crop prices and income, as in the past. With Soy prices soaring, as China rebuilds its pig herd, farmer cash income will reach $134.1 billion in 2020 compared to just $109.4 billion in 2019, according to the USDA. And farmer net income will reach the highest level in inflation adjusted, real terms since 2013. With this strength in income, irrigation sales are expected to rise double digits in 2021 as farmers keep Watering The Plants. And Third, with Housing sales strong, floor covering sales continue to grow. According to industry data, volumes of floor coverings grew at 5.4% in Q3 with continued strong growth in Q4. With this type of growth, we see manufacturers Dancing On The Floor.
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