Global animal protein still seen challenged in ’23: Rabobank

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The global animal protein industry will continue to face challenges in 2023, although there should be some opportunities, according to a report from Rabobank.

Producers are expected to see continuing high costs next year as they face supply chain challenges, consumption shifts and other market-driven changes, analysts at the global research firm said. The beef industry is expected to contract in 2023 as the U.S. domestic cycle enters what the Rabobank analysts call “a multiyear decline,” while poultry should expand thanks to strong demand and pork sales should stabilize over the next 12 months. Meanwhile, pork production in China is expected to experience marginal growth while poultry should expand slightly as consumers deal with high costs and other uncertainties, the analysts added.

Rabobank analysts believe the overall trend for 2023 will include a continued protein production slowdown, with small gains in some specific regions. The slow growth in China across all species will be in contrast to ongoing animal protein growth in Brazil and Southeast Asia, the report predicted, adding that North American and European protein production overall will contract next year.