Rabobank is predicting that meat prices will remain high next year, especially beef prices.
Production will continue to decrease, it said. An increase for poultry will be offset by declines in beef and pork, it said, resulting in the first annual decline in six years.
While we expect feed costs to remain steady, lower protein supplies, rising volatility and trade costs, and disease pressure will weigh on margins, it said.
Processors may face ongoing challenges around capacity utilization, as well as trade disruptions resulting from tariffs and other protectionist measures, it said.
All of this could raise costs, pressure demand, and ultimately squeeze margins. In both mature and developing markets, a focus on increasing efficiency and productivity will be critical at the farm and processor level.
Yet, substitution is not always straightforward, as some proteins are not always considered direct substitutes for more premium products, it said.
