Poultry and seafood production were also set to register production growth in 2018 but the growth rate in those sectors was expected to be slightly lower than during 2017.
Two of the impacts of the expected production increase would be more competition between species and between exporters for access to trade flows, Rabobank animal proteins analyst Blake Holgate said.
"Many countries will be looking to increase their level of animal protein exports in 2018 and we expect to see intense competition in key importing markets, particularly in the Chinese market," Mr Holgate said.
Increased production was also expected to create margin pressure along the supply chain, with food retailers and food service companies best placed to benefit.
While price and margin pressure were likely to be central themes for the sector, production growth would also create areas of opportunity for the industry.
"As the changes brought about by increased production take shape, new areas of opportunity will open up in all markets and we believe animal protein companies and supply chains that are well connected to markets, and most agile and innovative in responding to these opportunities, will be best placed to benefit," he said.
For New Zealand, farmgate beef prices were likely to come under downward pressure as rising global beef production increased competition through 2018.
However, provided consumer demand remained positive in New Zealand's key export markets of the US and China, cattle prices were expected to hold up reasonably well and sit above long-term average returns, Mr Holgate said.
Signs were also positive for New Zealand's sheepmeat producers with low levels of global lamb inventory expected to support strong prices.
Lamb prices were now at near-record levels and the challenge for exporters would be to maintain the current level of consumer demand given the availability of other less-expensive animal protein alternatives.
Mutton prices were also likely to remain high due to an expected reduction in New Zealand export volumes and continued high demand from China.
BNZ's latest "Rural Wrap" said overall market conditions suggested 2017-18 season average prices for lamb would be firmly above the equivalent for 2016-17. Spreading dry conditions was a threat worth monitoring, with the risk of a near-term surge in supply.
New Zealand export beef prices still faced a headwind from Japan's tariff increase from 38% to 50% on frozen New Zealand beef through to the end of March 2018.
But demand had been strong from elsewhere, including from the US and China, and a lower NZD/USD was helping local pricing.
New Zealand pricing in 2017-18 was expected to be around similar levels to 2016-17's strong levels, on average, for the season.
Looking beyond trade, the Rabobank report highlighted four key watch factors which were expected to play a major role in the direction of the animal proteins sector in 2018 and beyond — industry consolidation, the evolving retail landscape, increased adoption of agricultural technologies, and the rise of alternative proteins.
Industry consolidation was expected to advance most swiftly in the poultry and beef industries.
Animal protein companies would be wise to keep an eye on the evolving food retail landscape in the coming 12 months, the report said.
Food retailing was being reshaped at a rapid rate and the purchase of the Whole Foods chain by Amazon was a great example of that.
"This deal, and others like it, is resulting in the availability of more food products via an increasing number of channels," Mr Holgate said.
The Southern Heritage Trust says unless the council takes a proactive approach to educate property owners and help subsidise consent costs, there is a risk buildings will be demolished before the plan is operative.
This is already happening, and has been for a long time. One of the most distinctive parts of Dunedin now is the warehouse district, south of Queens Garden. Led by the likes of Stephen Macknight, old buildings have been transformed into new office space, all the while retaining the historic element which now makes them so attractive to tenants.
Dunedin missed out on the extremes of the 1980s when Auckland, Wellington and Christchurch had their old buildings razed and replaced with soaring glass towers. In some cases, those towers have been replaced with higher, new towers. In others, earthquakes have damaged these beyond repair.
Dunedin missed all of that and thankfully, although some of the old buildings lay empty and deteriorating, owners have now made much progress in restoring them. The cityscape is alive with older but refurbished buildings.
There is a different feel for the character homes. The Second Generation Plan for Dunedin identifies many properties which should or could be labelled as heritage.
The University of Otago feels the plans will act as a disincentive to improvements on designated character buildings. There will be additional costs imposed on owners to maintain the buildings while also meeting the high standards now needed for rental accommodation.
Education will be the key to retaining as many character homes as possible in the city.
