PIX/AMC 2016 Angus Gidley-Baird

@angusgb

World animal protein requirements and challenges for sustainable milling

The changing world

Growing population Growing wealth Growing consumer

Animal protein consumption growing

4

0

50

100

150

200

250

Beef and Veal(cwe)

Pigmeat (cwe) Poultry meat(rtc)

Sheepmeat(cwe)

Dairy Fish

Mill

ion

tonn

es

2005 2015 2024f

11% 8% 20% 18% 18%

13%

By 2024 we will need an additional 72 million tonnes of animal protein

Source: OECD FAO, Rabobank, 2016

5

Overview – grain usage for animal feed increasing

Source: JCS Solutions, ABS, Dairy Australia, Australian Egg Corporation, MLA, ALFA, Rabobank 2016

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Beef Dairy Poultry Layer Pork Aquaculture

Is there a natural limit to chicken consumption?

6

10

15

20

25

30

35

40

45

5019

95

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Per c

apita

con

sum

ptio

n (k

g/pa

)

United States EU-28 Brazil Australia New Zealand MalaysiaSource: OECD FAO, Rabobank, 2016

10

15

20

25

30

35

40

45

5019

95

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Per c

apita

con

sum

ptio

n (k

g/pa

)

United States EU-28 Brazil Australia New Zealand Malaysia

Growth prospects for chicken meat

7

• Develop new markets

• Capturing a larger share of consumer spending

• Improving margins through productivity gains

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Australian production Slow growth

Strong growth Forecast

What do consumers want

8

Sustainable

Barn laid

Cage free

Free range

No preservatives

Organic

Anti-biotic free

No artificial flavours

No artificial colours

Natural Gluten free

Fairtrade

CertifiedSource: Albert Heijn; Rabobank, 2016

Consumers want to know what’s in their chicken

Source: Perdue; Rabobank, 2016

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Thank you

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