June 28, 2007

World meat demand to rise 2-3 percent on-year over next decade
 

World meat demand is likely to rise by 2-3 percent annually over the next 10 years, led by growing demand in Asia, Thomas Bauer, head of Rabobank's South-east Asia strategic advisory and research division, told Dow Jones Newswires on the sidelines of the Grain Shipping conference.

"Most of the increase in meat demand will come in the pork and poultry segments," Bauer said.

While China and Vietnam will drive demand for pork, South-east Asian countries and India will drive poultry demand.

He said poultry demand globally is expected to grow the fastest compared with other meats, as chicken is perceived to be healthier by consumers, while a shorter production cycle and more efficient feed use in the poultry sector makes it cheaper to produce than other meats.

Bauer said the availability of feed is likely to become a challenge, as meat demand continues to grow.

"Alternative feed sources to corn and soymeal such as palm kernel and by-products of ethanol production, besides food processing waste, will be increasingly processed as feed," Bauer said.

He added that meat prices may show a rising trend in the foreseeable future, due to rising demand for meat and feed.