NEWS 70 FEED & ADDITIVE MAGAZINE February 2023 Hamlet Protein CEO Erik Visser discussed the 2023 market outlook for the animal nutrition industry in general and for Hamlet Protein in particular. The global leader in specialty ingredients for young animal nutrition expects volatility and high feed costs to continue yet sees opportunities for growth in swine and poultry markets. FEED COSTS “As part of an inflationary environment, we expect that increased cost levels of utilities, fertilizers, transport and labor will contribute to continuous high feeding costs,” said Visser. With relatively low agri-commodity stocks, the risk of volatility will remain high in 2023. As the cost of nutrition makes up the bulk of production costs, producers will favor solutions that will help drive efficiencies at their farms. SBM Price levels of Soybean Meal will primarily be driven by weather, demand for renewable energy and consumption levels in China. “Considering current stock levels and weather forecasts, we expect to see a 5 to 10% cost reduction in 2023 versus the 2022 average,” according to Visser. UTILITIES European producers and households were severely affected by high utilities costs in 2022. As geo-political tensions continue, no significant drop in price levels is expected any time soon and markets will see continued volatility. “Where we expect some price relief in Q2 and Q3, Q4 will be the big question mark as governments will need to rebuild gas stocks without Russian supply.” SUPPLY CHAIN With global demand falling, increased capacity and reduced port congestion, spot rates for ocean freight will continue to decline. “Even though we may see some relief on container freight costs, logistics in the global supply chain in general will continue to suffer disruptions in 2023 impacting reliability and cost levels,” indicated Visser. These disruptions will be driven by the energy crisis, labor shortages and demand imbalance. ANIMAL DISEASES Avian Influenza and African Swine Fever will continue to impact animal numbers across geographies. The occurrence of these disease patters, and the absence of break through treatments like vaccinations, will bring with it a further focus on farm management and bio-security measurements. “As a consequence, we expect that animal protein as a diet source, like blood plasma and fish meal, will come under pressure.” SUSTAINABILITY Sustainability and animal welfare will be on the agenda of consumers as well as governments. Several countries are considering further taxation on CO2 emissions or actively try to reduce animal population through buy outs of farmers. Even though this will not slow down the global demand for animal protein, it will have an impact on where production will take place. Market outlook 2023: Hamlet Protein CEO discusses main trends Evaluating the 2023 outlook of the animal nutrition market, from feed costs to supply chain, from animal diseases to sustainability, from soybean meal supply to regulations, Hamlet Protein CEO Erik Visser thinks that consumers will focus on poultry products for protein due to food costs. Erik Visser
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