Covid-19's Impacts on Southeast Asian Animal Protein Markets
Animal protein consumption is expected to decline across the board this year in Southeast Asia as a result of the quarantine measures and negative economic growth resulting from Covid-19, according to Rabobank's ‘Covid-19's Impacts on Southeast Asian Animal Protein Markets.’
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Covid-19 is having a net negative impact on animal protein demand in Southeast Asia for two reasons: quarantine measures and negative economic growth. Despite a temporary demand shift from foodservice towards at-home meals and online retail/food delivery, overall animal protein consumption is declining. The sudden downturn in activities has instantly hit the informal economy and is increasingly impacting the formal economy.
We expect declines in Southeast Asian animal protein consumption across the board this year. The economic impacts of the drop in tourism and quarantine measures have reduced purchasing power and will drive change in the types of products demanded. Moreover, Covid-19 has created congestion and exposed vulnerabilities in supply chains, even as African swine fever has limited supply. With increased focus on products that provide the best value for money, integration and digitization will accelerate.
Where to go from here
Ben SantosoSenior Analyst - Animal Protein