Animal protein company leaders will need to find and pursue opportunities in the relatively challenging market context, said Rabobank. Drivers of change include the rising cost of inputs, particularly animal feed, labor, energy and freight. These drivers are likely to be confounded by further challenges, including the transition to more sustainable animal protein production, biosecurity challenges and the ongoing health crisis.

Rabobank expects animal protein prices to remain firm in 2022, with some exceptions. Prices will be supported by ongoing supply constraints and general strength in demand.

“We expect leaders of progressive animal protein companies to focus on the opportunities created by the ongoing market disruptions, rather than only seeing the multiple changes as business risks,” said Justin Sherrard, Global Strategist, Animal Protein.

The overall trend for 2022 is for continued but slowing production growth, driven by pork, poultry and aquaculture.

Rabobank expects the growth trend in these groups in recent years to continue, although pork will expand more slowly.

Beef and wild catch are both expected to contract slightly. The ongoing recovery of China’s pig herd will be the largest single driver of growth in global markets in 2022.