After several years of lackluster growth due to a weak global economy, meat demand is forecast to take off. Both livestock and crop farmers will benefit.
Global consumption will be on an upward arc, says Ryan Turner, INTL FCStone Inc. commodity risk manager. Russia is expected to post the largest increase with China and Brazil following. By 2022, the U.S. will remain No. 1 in per capita meat consumption, and Brazil will be a close second.
"While there’s a lot of talk about increases in global meat consumption, price matters," Turner says. "U.S. red meat prices are at record levels, and that will increase production."
Additionally, the drop in the price of feed grain will drive livestock production and consumption on a global basis, he adds.
"We could be headed into a multi-year, low-cost environment for livestock producers," says Turner. Poultry production is forecast to increase the most with a 50% share of the growth, pork is forecast to grow 30% and beef 18%, he says, adding that much of this increase will come from Asia.