Animal protein production is expanding around the world, and increasing competition—between the species and in trade flows—is creating many areas of opportunity for both producers and processors.

“Rabobank expects animal protein production to increase in all regions, with total production growth once again surpassing the ten-year average,” according to Justin Sherrard, Global Strategist – Animal Protein. “This strong production increase is mainly being driven by Brazil, China, and the US.”

Looking at production across species, beef joins pork as a strong contributor to global expansion. In 2018, global beef production is expected to expand for a third consecutive year, and global pork production is expected to see another year of significant expansion. Poultry production is also expected to grow, but will be down slightly on 2017.

In seafood, aquaculture continues to drive seafood supply growth. Sustainable growth in the seafood industry solely depends on aquaculture, although Rabobank expects the wild catch industry to recover after El Niño recedes in 2017. Zooming in, the salmon market is recovering, fishmeal prices will stabilize, and the shrimp industry is likely to continue growing.

On the trade scorecard for 2018, Rabobank notes that “many countries are looking to increase exports, and this will be a major part of the increased competition we expect in 2018”, according to Mr Sherrard. While specific trade outcomes will also reflect growing demand, access issues and policy decisions, Rabobank expects trade to represent an important area of both opportunity and uncertainty over the coming year. “Trade should be the top-of-mind issue for global animal protein as we head into a new year, and enhancing competitiveness is going to be critical for success.”

Click here to watch Rabobank's video summary of the report, and/or download the report.