December 20, 2017
Animal protein production growth to continue in 2018, competition to increase - report
Animal protein production is expected to expand around the world, and concomitant with it will be increased competition - whether between the species and between exporters - creating many areas of opportunity for both producers and processors, according to RaboResearch's Animal Protein Outlook for 2018.
"Rabobank expects animal protein production to increase in all regions, with total production growth once again surpassing the ten-year average," said Justin Sherrard, global strategist – animal protein at Rabobank.
"This strong production increase is mainly being driven by Brazil, China, and the US", he added.
Across species, beef joins pork as a strong contributor to global expansion, and according to the report, global beef production in 2018 is expected to expand for a third consecutive year.
Global pork production is also expected to see another year of significant expansion.
Poultry production is likewise expected to grow, but will be down slightly on 2017, according to Rabobank, an agricultural lender.
It said aquaculture will continue to drive seafood supply growth, adding that sustainable growth in the seafood industry "solely depends on aquaculture, although we expect the wild catch industry to recover after El Niño recedes in 2017".
"Zooming in, the salmon market is recovering, fishmeal prices will stabilise, and the shrimp industry is likely to continue growing" the bank's optimistic prognostication for animal protein further said.
"The Rabobank trade scorecard for 2018 shows that many countries are looking to increase exports, and this will be a major part of the increased competition we expect in 2018", Sherrard said.