Erik Visser, CEO of Hamlet Protein recently commented on drivers and developments that will influence the profitability of livestock production in 2024. He anticipates continued growth albeit at a slower pace for all segments of animal production in the intermediate term.

 In a post COVID era, consumers are under financial pressure as a result of central bank decisions to reduce inflation by increasing interest rates.  Although prices for animal-based foods are declining, housing expenses in industrialized nations are still elevated. This has reduced disposable income and has resulted in middle and lower income consumers to seek value in their purchases. 

Economies in Asia have yet to return to pre-COVID levels.  Producers in Europe are subject to ever more rigorous environmental restrictions and high feed and energy prices have narrowed margins. Brazil with bountiful resources and favorable weather this growing season appears to be the outlier, benefiting from strong exports.

Among livestock segments poultry appears to be showing limited growth at the expense of reduced market share from red meat that has become progressively more expensive. Poultry and especially eggs have a lower environmental impact compared to ruminants and will benefit under stricter regulations.

Visser commented on lower feed costs in many production areas.  Possible factors that may reverse the current favorable trend include the ongoing conflict in eastern Europe and more recently the Middle East with the potential to disrupt marine transport raising freight costs for bulk grain, container cargos and petroleum products.