Despite an underwhelming performance in 2014, the near-term prospects for the U.S. food and beverage industry are encouraging, according to a new report from BMO Economics.

"Although margins and profitability fell short of lofty expectations in 2014, stronger demand growth, falling livestock prices, and still-low crop costs should help producers make up lost ground," said Aaron Goertzen, Economist, BMO Capital Markets.

"The majority of our customers are confident in their prospects for the coming year," added Erica Kuhlmann, Market Executive and Managing Director, Food, Consumer and Agribusiness Group, BMO Harris Bank. "We've worked with many of our customers to help them through significant challenges over the past year, from high cattle prices to the ramifications of drought conditions. There's a strong sense that a corner has been turned and a very productive period of growth lies ahead."

To view a full copy of the report, click here.