Part 2: Rabobank Global Animal Protein Outlook

In part two of this series with Rabobank, we take a closer look at input costs and the need for producers to adapt to structural changes. Rabobank Senior Animal Protein Analyst, Lance Zimmerman.

“We are seeing production costs start to come off. And we're certainly realizing that and in the US markets when we look at what's happening within the grains, but as we look at the other side of the coin, we've talked a lot about supply. We've talked a lot about cost of production. The other side of it is demand. And I think the one thing that we have to realize, as we look ahead to 2024, we still have some considerable challenges being faced by the animal protein consumer.”

Inflation has surged by 15 to 20%. This year alone, and he says looking to next year, the trend is still expected to be high in terms of consumer inflation.

“Everybody has a dimmer outlook on the economy for next year. And yet we have a consumer who their income is stagnated, their income growth has stagnated. And so as we look ahead, I think demand is going to be an outside factor from an economic perspective that we're gonna have to watch very closely. What did consumer incomes do? How is the consumer's confidence coming out of the holiday season? And then ultimately, what does that mean for animal protein demand

in tomorrow's report?”

Hear more from Zimmerman on imports in part three of this series with Rabobank.