The recently released Rabobank Global Animal Protein Outlook 2021 is anticipating production growth in most regions in 2021, with the global animal protein industry expected to rise again.
Rabobank reported that pork production is set to grow faster than other species in 2021, due to the recovery from African swine fever (ASF) in China and Vietnam. China reached its lowest level of pork production in 2020, and recovery is expected to dominate 2021.
Beef is expected to return to modest growth next year, led by increases in North America and Brazil. Only wild-catch seafood is expected to move in the opposite direction, with a small decline, due to climatic conditions and reduced quotas.
“ASF is still a major driver of change. In Asia and Europe, the disease keeps affecting pig herds, pork production, and demand for other animal protein species as substitutes for pork,” said Justin Sherrard, Global Strategist – Animal Protein for Rabobank.
“All eyes are on China – Germany’s largest export market outside the EU. If China accepts regionalization, trade from the non-affected regions in Germany can continue. Until regionalization is accepted, or material alternative trade options are found, German supply will pressure European pork prices.”
According to Rabobank’s report, in 2021, the focus for the farming industry will be on recovery. As each animal protein group has been affected differently by Covid-19, the report expects they all will face different opportunities and risks.
Mr Sheppard added: “In general, we see ongoing challenges with low labour availability and higher costs in processing, but, at the same time, new opportunities will arise with the acceleration of e-commerce. The business strategies will need to focus on investing in agility to increase responsiveness in the short term, and restore trust – not only with customers and consumers, but also with workers, regulators, and suppliers.”