#20 The Meat Traders' Journal

From Farm to Fortune. Where the Deals, Trends and Profits Lie

If you missed the last newsletters, you can look them up here.

🔓Market Movers & Shakers Intel

Pork Meat Market Analysis: SOUTH KOREA

South Korea is a good market for imported Pork.

The trend indicates that there a robust demand for imported pork and rising. USA and Brazil and leading the South Korean demand.

South Korea has started 2024 with a 28% increase in U.S. pork imports compared to 2023. The demand is growing so importers should consider increasing their import volumes to meet the growing demand.

  1. Significant Increases:

    • Riblet: Increased significantly each month, especially notable from March to April (29.84%).

    • Ham: Drastically increased from March to April (313.31%).

    • Loin: Major increase from March to April (99.17%).

    • Belly: Continued increase from February to April, with a substantial rise in March (29.21%).

    • Others: Remarkable surge from February to March and from March to April

  2. Decreases:

    • Collar: There was a decrease of 11.36% in Collar imports. From March to April increased by12.92%.

    • Tender Loin: Notably decreased from February to March (-99.43%) but rebounded strongly in April.

    • Picnic: Increased from February to March but saw a minor decline from March to April (-4.24%). Probably due to price and importers focused on Belly more.

  3. Overall: The total imports increased steadily over the months, with notable jumps particularly from February to March (20.06%) and continuing growth from March to April (7.82%).

Tactical Actions for the Next Three Months

  1. Immediate Purchases: Given the rising trend in Belly imports, consider securing Belly supplies now before potential price increases and potential production is sold out in advance.

  2. Watch Picnic Prices: Monitor Picnic prices closely. If prices show signs of stabilizing or decreasing, plan for larger purchases to take advantage of the lower cost.

  3. Analyze April Data: Pay close attention to April's increase in imports Evaluate if this trend continues into May and adjust orders accordingly.

  4. Seasonal Adjustments: Prepare for potential seasonal demand spikes, such as during summer months when BBQ season might increase demand for specific pork cuts. Other countries are doing the same.

By following these strategic and tactical recommendations, importers can stay ahead of market trends, manage risks effectively, and capitalize on opportunities in the pork market.

🏆Broker is not just a middlemen.

Do you like the sounds of words:

  • Business Growth

  • Efficiency

  • Profitability

 This is Why a Meat Trading Broker is Essential for Your Business

In the meat and commodity industry, growth and success depend on smart strategies and strong partnerships. How a meat trader/broker becomes a key player who can help suppliers and importers expand their businesses effectively?

Here’s how:

Market Intelligence

  • Stay Ahead of Trends: Brokers provide insights into market trends and consumer preferences, helping you adapt and thrive.

  • Competitive Analysis: They analyze competitors’ strategies, giving you the edge needed to stand out.

Sourcing and Supply Chain Optimization

  • Reliable Supply: Brokers connect you with trustworthy suppliers, ensuring a steady flow of high-quality meat products.

  • Efficient Logistics: They streamline logistics to cut costs and improve delivery times, boosting your operational efficiency.

Product Development and Diversification

  • New Product Lines: Brokers help develop and launch new meat products that meet changing consumer demands.

  • Quality Improvement: They assist in enhancing the quality of your products, making them more attractive to customers.

Negotiation and Pricing Strategy

  • Competitive Pricing: Brokers negotiate favorable prices, ensuring your products are competitively priced to attract more buyers.

  • Volume Discounts: They facilitate special pricing agreements, encouraging larger purchases and fostering long-term relationships.

Regulatory Compliance and Standards

  • Export-Import Regulations: Brokers advise you about export and import regulations that you might encounter, ensuring your products meet international standards.

  • Quality Certifications: They help obtain certifications that boost your product's credibility and marketability.

Marketing and Sales Support

  • Effective Marketing: Brokers develop strategies to promote your products, increasing visibility and demand.

  • New Sales Channels: They identify and establish new sales channels, both online and offline, expanding your market reach.

Customer Relationship Management

  • Building Relationships: Brokers foster strong ties with buyers, suppliers, and regulatory bodies, creating a reliable network.

  • Feedback Loop: They implement mechanisms to gather customer feedback, helping you continuously improve your offerings.

Common mistake when Hiring:

Hiring cheap, inexperienced brokers sabotages your business.

The Rising of South Korea’s AgriFoodTech Industry

South Korea’s AgriFoodTech Revolution

South Korea is not just famous for its K-pop, movies, and dramas. Now, it's making waves in the world of farming and food technology, known as K-Agrifoodtech. This area includes everything from new food products to smart farming methods, and it's quickly becoming a major player globally.

The global foodtech market size is estimated to be approximately USD 554.2 billion, with the Korean market estimated at around USD 46.4 billion as of 2020. It has been growing at a high rate exceeding 30% every year since 2017.


The Korean Wave and Beyond

Korean culture has taken the world by storm. From beauty products to food, Korean exports are booming. Between 2017 and 2021, the export growth rate of these products was 13.7% per year, much higher than the national average.

Now, K-Agrifoodtech is following in these footsteps, bringing the latest farming and food technologies to the world stage.

AFRO 2024: A Showcase of Innovation (link)

In July 2023, Seoul hosted the first Agri-Food Technology K-Startup Expo (AFRO 2023). This event brought together over 250 companies, from new startups to big corporations, to show their cutting-edge technologies.

The expo focused on smart farming, advanced food tech, and eco-friendly biotechnology, drawing needed investments and attention to South Korea's growing agrifoodtech sector.

This coming July, COEX will hold the AFRO 2024. You will find many startups and be able to discover the latest trends and products that may flip your business.

  1. AgTech Startups

  2. FoodTech Startups

  3. GreenBio Startups

  4. ESG Startup

Why Agrifoodtech Matters

Agrifoodtech combines farming with technology to tackle big challenges like climate change and food security. It aims to produce more food with fewer resources, making farming more sustainable and efficient.

Empowering Female Entrepreneurs

The agrifoodtech sector in South Korea also boasts a growing number of female entrepreneurs. Market Leaders like Kim Seulah, the Founder and CEO of Kurly are becoming more relevant, bringing fresh ideas and energy to the industry. Kurly, for example, has changed food delivery with its dawn delivery service, becoming a major player in the market. Kurly is a unicorn with a valuation of $76M in 2022.

Looking Ahead

South Korea's agrifoodtech industry is set to keep growing, driven by innovation and strong government support. With the world facing increasing challenges related to food security and sustainability, South Korea is well-positioned to lead the way with its advanced technologies and forward-thinking startups.

Remark

This video, though four years old, effectively demonstrates how food aggregators are boosting revenue for small restaurants. Additionally, they act as a catalyst for food tech startups, enabling them to reach a broader audience.

3 ways I can help when you ready:

âś…Your Supply and Purchasing Advisor 1:1 (30 minutes Strategy Session)

âś…I create a win-win partnership across the world with any brand, factory or new product

âś…On-line/off-line Sales Training sessions to elevate your Global sales team (Check video for an example)

đź’ŽDid you know?

Battle between Fast-Food and Sit-Down

McDonald’s and other fast food joints are upping their prices. Now, Applebee’s wants you to think twice before grabbing a quick burger.

“You can get our burger for $9.99,” says John Peyton, CEO of Applebee’s parent company Dine Brands. He suggests, “why would you take a $10 burger that you can eat in a bag out of your car?”

With fast food prices climbing, dine-in restaurants like Applebee’s and Chili’s are offering deals that match fast food costs, trying to win over budget-conscious diners. Applebee’s is betting on the draw of a sit-down meal for the same price as a drive-thru burger. Chili’s is making the comparison even clearer in its promotions.

Higher fast food prices have made it a tough market. In the past year, fast food prices rose 5%, while sit-down restaurant prices only went up 3.2%. This has restaurants battling for fewer diners, especially as more people choose to eat at home to save money.

So, next time you’re considering a quick meal, remember: you could sit down and enjoy a burger at Applebee’s for the same price as one from the drive-thru. Because in this burger battle, every penny counts!