Focusing on the global animal protein markets, Mulder highlighted the following signals every feed manufacturer should be watching.
Evolving industry
Growth in global animal protein production will continue to slow in 2026, influenced by both cyclical and structural factors. Seafood will remain the leading contributor to production growth, followed by poultry, while pork and beef will contract, marking the first reduction in global terrestrial species output in six years.
Mulder said that Rabobank is expecting a tight cattle supply with high prices, with the poultry industry looking strong, especially when considering global animal protein consumption.
“The animal protein market will grow by 1,4% per year, and in 2026 this growth will be driven by poultry, eggs, and seafood,” he said.
“While we expect feed costs to remain steady, in both mature and developing markets, a focus on increasing efficiency and productivity will be critical at the farm and processor level.”
He added that with the global GDP growth projected to slow in 2026, consumers will remain price-sensitive and shift consumption patterns.
The global population will increase by 30% by 2080, and 66% of these people will live in cities. Africa is increasingly driving global population growth, with urbanisation expected to continue.
Mulder also said that geopolitical tensions and evolving trade policies will continue to influence trade, but new trade agreements may provide a boost.
“El Niño weather risk is rising for the rest of the year, and although the phenomenon leads to drier conditions in the Southern Hemisphere, it normally also leads to more bullish prices.”
He pointed out that disease outbreaks have also disrupted trade, squeezed margins, and pressured productivity. Beyond recurring threats like African swine fever and avian influenza, diseases like New World screwworm, bluetongue, foot-and-mouth disease, and lumpy skin disease are emerging.
He advised the industry to be on alert and focus on greater adoption of biosecurity measures and new approaches to managing disease pressure.
“Solutions to these challenges are complex, as they require careful consideration of the implications across the supply chain, trade, and society. Dealing with animal disease risks will remain a key driver for industry performance,” he said.
Technology impact
In this increasingly uncertain operating environment, technology will play a pivotal role, helping companies across the supply chain manage operational risks while advancing sustainability goals.
To meet the challenges and leverage the opportunities these evolving market dynamics present, animal protein companies should pursue diversification and consolidation while adapting their portfolios to shifting consumer preferences.
Mulder stated that changing business models can disrupt local agricultural supply chains and food supply. Some of these disruptions include out-of-the-box technology such as vertical or high-rise pig farms as found in China, high-tech agriculture, lag-grown meat, and animal welfare.
“Smart technology, data, and AI will play a significant role in the future. Value chains will be more digital with more multidisciplinary business models and will rely more on fact-based than intuitive fact-based decisions.”
Looking at the long term, Mulder said:
- Animal protein demand will rise by 14% by 2035, with poultry and eggs playing the major role;
- Emerging markets will drive 90% of the growth, especially Asia, Latin America, and Africa;
- Industry modernisation in emerging markets and Africa will be an additional driver of growth;
- Chicken and bovine industries will drive growth in the African feed market;
- Animal protein companies will likely become more consolidated, international, and focused on multi-species;
- Industry should prepare for big changes in consumer demands. Generation Alpha will be the main workforce in the near future, thinking and handling life differently.
It’s evident that the agriculture sector will be impacted by technology. The onus is on farmers to consider the best tech innovations that can contribute to improved productivity and management of their farming enterprises.
