Meat industry to witness strong growth in Brazil and North America


The rest of the world is confronted with biosecurity risks and challenging condition, show Rabobank analysis.

Posted on Nov 16 ,06:46

Meat industry to witness strong growth in Brazil and North America

Growth in global animal protein production is expected to slow as we move through 2019, given some obvious areas of uncertainty in trade, biosecurity, and the weather, show the most recent outlook from Rabobank.
Due to harsh weather conditions and high biosecurity risks, meat and poultry production will witness an increase only in some regions of the world, such as South and North America. Also, uncertainty created by African swine fever, in trade, and with feed prices all contribute to the slowdown in production.
Nevertheless, the economic outlook is positive for most of the world, and consumer confidence remains firm, mentioned the analysts. "To help ensure a successful year ahead, the animal protein supply chain needs to look through the uncertainties. Boosting competitiveness in trade will benefit from strong relationships and reasonable pricing, as well as enhanced biosecurity. Boosting competitiveness in domestic markets will benefit from innovative approaches to production and processing that boost value-adding", the document says.

North America will see strong growth in production, with increases across all species, led by pork. Exports will increase too, while small, total growth in beef exports will lead export growth, predicts the analysts.

Poultry production is growing, but pork and beef are stable. European exports will grow, and biosecurity will become even more important.

Biosecurity is the top issue for the Chinese animal protein sector, and pork production is down materially as a result. Imports are expected to rise.

Production is growing across all species of the Brazilian animal protein complex. Local economic conditions influence local demand… and could go either way. Exports are expected to increase.

South-East Asia
Poultry leads to modest production growth in South-East Asia. Cost pressures are rising, challenging local production and imports.

Australia & New Zealand
Beef and sheepmeat production in Australia & New Zealand will decline. Limited supplies will maintain strong livestock prices, and seasonal conditions dictate growth possibilities.

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