Meat production in 2018 will increase competition
Rabobank’s Global Animal Protein Outlook for 2018 forecasts production increases in all major regions of the world – with total growth once again surpassing the 10-year average. In Australia, however, meat production is forecast to increase only slightly, as the country’s beef herd and sheep flock rebuild from recent years’ lows.
The report states Brazil, China and the United States will be the main drivers of global meat production growth in 2018. Beef will join pork as a strong contributor to global expansion of animal protein production, with poultry production also expected to grow, although the rate will be slightly down on 2017. Aquaculture will continue to drive seafood supply growth around the world.
Rabobank expects trade to represent an important area of both uncertainty and opportunity for the global animal proteins sector over the coming year. Trade will 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.
Rabobank forecasts lamb and sheep prices to remain at strong levels through 2018. However, the report notes, prices will be challenged domestically by falls in the price of other proteins.