Disruption that has permeated primary sectors throughout 2021 will persist next year, a report from rural lender Rabobank says.
Demand was strong and set to grow further as economies continued to reopen, and balancing high costs through the supply chain would be a key challenge according tothe Global Animal Protein Outlook report.
Rabobank global strategist for animal protein Justin Sherrard said changes within the market would be an opportunity for growth, rather than solely a risk.
"Rabobank sees agile business leadership as the most likely route to sustainable growth and is advising firms to embrace consumer preferences for sustainability and to be prepared for a surge in demand as economies continue to reopen and adjust following Covid-19-induced lockdowns."
The report said the pricing outlook for New Zealand sheepmeat and beef remained positive, despite mounting supply chain challenges and costs.
"High freight costs will likely continue to impact New Zealand exporters in 2022 and balancing these costs through the supply chain will be a key challenge," RaboResearch analyst Genevieve Steven said.
Another key challenge would be the availability of labour domestically, with many processors understaffed at present due to the Covid-19 pandemic, Steven said.
An outbreak among workers at a processing plant could result in farmers having to keep stock on-farm for longer.
"There's an amazing opportunity here to take advantage of the really strong demand for sheep and beef meat, but it's going to come down to our processors' ability to manage labour and shipping through the season."
