Continued strong demand will benefit North American animal protein companies while they also face multiple challenges, including inflationary pressures and production constraints, according to the annual Rabobank Global Animal Protein Outlook.
The report looks at the year ahead for the beef, poultry, pork and seafood markets in North America and beyond, while also examining global issues such as the continued push for sustainable production and the uncertainty around African swine fever.
Animal protein supply chains face across the board cost inflation with the most significant increases coming in four key areas – animal feed, labor, energy and freight. But Rabobank sees agile business leadership as the most likely route to sustainable growth.
“This next year has the potential to accelerate structural change as a result of escalating costs,” says Christine McCracken, senior animal protein analyst for Rabobank. “Success will most likely go the players that adapt to the changing business environment; embracing consumer preferences for sustainability and preparing for a surge in demand as economies continue to reopen and adjust following COVID-19-induced lockdowns.”
On a consumer level, Rabobank expects global demand for beef to remain solid, demand for salmon and shrimp to show ongoing strength, improving demand for poultry and pork, and strong sales of alternative proteins.
“Although demand will be strong and supporting livestock prices, North American feed costs are expected to remain at high levels,” says Don Close, senior animal protein analyst. “Producers will need to be vigilant on finding opportunities to lock in profitable margins.”
Here some additional insights from the report:
The annual Outlook report is produced by Rabobank’s specialist team of animal protein analysts based around the world. The 2022 Outlook is the seventh edition of the animal protein outlook.
Public Relations, Rabo AgriFinance
Rabobank Group is a global financial services leader providing wholesale and retail banking, leasing, and real estate services in more than 38 countries worldwide. Founded over a century ago, Rabobank today is one of the world’s largest banks with over $660 billion in assets. In the Americas, Rabobank is a premier bank to the food, agribusiness and beverage industry, providing sector expertise, strategic counsel and tailored financial solutions to clients across the entire food value chain. Additional information is available on our website or on our social media platforms, including Twitter and LinkedIn.
A leading financial services provider for agricultural producers and agribusinesses in the United States, Rabo AgriFinance is a subsidiary of Rabobank. To learn more about Rabo AgriFinance and its comprehensive suite of financial solutions, go to www.RaboAg.com.
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