According to the latest poultry report from Rabobank, the outlook for most markets in 2023 is positive. Demand remains strong and supply limited, but the context is changing. An economic downturn will affect market conditions, ongoing high inflation will pressure consumer spending power and operational issues will continue to challenge producers.
Although a rising number of countries are risking oversupply, global markets are expected to stay strong in 2023, with global poultry demand expected to benefit from consumers trading down to cheaper animal proteins. However, in many countries, demand growth will be restricted by tight supply, leading to ongoing high prices. Global economic growth is expected to fall, while inflation is expected to stay high. “This will pressure demand as consumers become more price-driven and raise the question of what price consumers are prepared to pay. This could lead to demand destruction, especially among low-income consumers. This is happening globally but especially in emerging markets in Asia, Africa, and Latin America,” explains Nan-Dirk Mulder, senior analyst – Animal Protein at Rabobank.