Global animal protein production continues to grow
Animal protein production is expanding around the world, with increasing competition creating many areas of opportunity for both producers and processors, according to RaboResearch’s Animal Protein Outlook for 2018.
Looking at production across species, beef joins pork as a strong contributor to global expansion, as global beef production is expected to expand for a third consecutive year in 2018.
Global pork production is also expected to see another year of “significant expansion”, while poultry production is anticipated to grow, but will be down slightly on 2017, said RaboResearch.
Justin Sherrard, global strategist – Animal Protein, Rabobank, commented: “Rabobank expects animal protein production to increase in all regions, with total production growth once again surpassing the ten-year average.
“This strong production increase is mainly being driven by Brazil, China, and the US.”
In North America, production continues to grow, with ongoing production expansion across the categories increasing the dependence on trade.
Production will also grow in Brazil in 2018, with beef production in both Brazil and Argentina expected to increase by 5% and 4% respectively.
In the EU, exports are described as “key in a challenging market”; access to export markets is “increasingly important for processors”, according to RaboResearch, as production rises.
Looking to China, pork supply is expected to increase, while poultry is expected to stay flat.
In South-East Asia, production growth will decelerate, the analysts said, with poultry production tapering off in response to oversupply.
In Australia and New Zealand, beef and lamb production is expected to remain steady.
While specific trade outcomes will also reflect growing demand, access issues and policy decisions, Rabobank expects trade to represent an important area of both opportunity and uncertainty over the coming year.
Uncertainty in 2018 will come from the heavy overlay of politics in trade policy, such as the NAFTA negotiation, Brexit and the US – China trade relationship, which is not new but does seem to have become more common, and from biosecurity issues, such as Avian Influenza, which again appear susceptible to political involvement.
Sherrard concluded: “Trade should be the top-of-mind issue for global animal protein as we head into a new year, and enhancing competitiveness is going to be critical for success.”