Animal protein production will continue to grow in 2024, but at a slower pace as margins remain tight. This is what Rabobank has foreseen in its report for 2024: “Global animal protein outlook 2024: Adapting to structural changes to sustain success”.
The fact that animal protein companies continue to increase production and meet customer expectations amid such challenging market conditions is a testament to their resilience and flexibility. According to Rabobank “despite the cost of living crisis putting pressure on consumers’ finances, demand for animal protein remains and companies have been able to overcome challenges, from high costs to regulatory uncertainty and disease, to capitalize on it. ”
According to the market analysis company, “for companies to maintain the success of recent years, it is essential that they adapt to structural changes in the market. Instead of simply weathering the storm, animal protein companies must take stock of their strengths and prepare to transition their supply chains to operate in an environment with high costs and tight margins.
Some forecasts for 2024:
Beef production in the United States continues to contract with the cycle, overshadowing changes in other species. Poultry will benefit from consumer preferences, while pork still needs to rebalance. The outlook for Mexico is slightly more positive.
There are ongoing production pressures for all species, given disease risks, market- and regulatory-driven changes to production systems, and lower exports. Poultry consumption is expected to grow, while pork and beef consumption is expected to decline.
Slow consumption will continue to put pressure on the animal protein system in 2024. Poultry is in the best position, with steady growth in production and consumption. The pork and beef markets will continue to be under further pressure as the market is well supplied, at least in the first half of 2024.
Production is expected to grow for all species, supported by export opportunities. Pork will grow the fastest, followed by poultry. Diseases remain a negative risk, especially for poultry.
Recovering economic conditions and easing disease pressures should support production growth in 2024. Pork leads growth, although subject to continued pressure from African swine fever, followed by poultry. . Beef will only see minor changes starting in 2023.
Australia and New Zealand
Rebuilding Australia’s beef herd means production and exports will grow in 2024. New Zealand production is expected to slow slightly for beef and increase slightly for sheepmeat.