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

Here is the weekly edition #23 of The Meat Trader's Journal newsletter for the first week of June 2024, focused on recent market trends and their potential impact on marketing strategies and operations in the meat and food tech industry.
Discover how recent developments are reshaping the meat industry's marketing strategies and operations.

🔓Market Movers & Shakers Intel

Meat Market Analysis: China

PORK

Production Challenges: Chinese pork production is expected to face challenges due to a contraction in the sow herd and disease outbreaks like African Swine Fever, which pose significant risks. High inventories in importing countries are also reducing global demand, leading to a soft market for pork exports​.

Increased Production in Q1 2024: During this period, China's pork production reached its highest level in five years, with a 1.9% increase from the previous year. This was driven by farmers selling off pigs due to disease outbreaks, leading to high slaughter volumes​.

Import Dynamics: China imported 530,000 metric tons of pork in the first three months of 2024, marking a 27.7% increase compared to the same period last year. This rise in imports indicates strong demand for pork despite local production increases​.

Demand and consumption: Despite production challenges and high supply pressures, pork consumption in China remains resilient. Lower feed costs are improving margins for farmers. However, pork prices are under pressure due to disease-related culling and high supply, leading to financial losses in key regions like Henan. Prices are unlikely to improve significantly until later in the year.

BEEF

Domestic Production: China's domestic beef production is on the rise, with wholesale prices stabilizing. However, the demand for imported beef is expected to remain sluggish in the first half of 2024 due to economic conditions and lower consumer spending power​.

Trade and Import Trends: Beef imports are forecasted to decline slightly in 2024 as flat demand and economic headwinds impact consumption. Despite this, China remains a significant market for beef imports from countries like Australia, New Zealand, and Brazil, although the volume of trade is expected to decrease.

Global Market Influences: The global beef market is influenced by various factors, including seasonal conditions and economic outlooks in major consuming markets. The US is expected to lead the beef price-setting market, drawing increased volumes from traditional beef-exporting countries.

The Chinese pork market in Q1 2024 has been impacted by several factors. Despite lower feed costs improving margins, production challenges such as disease outbreaks and high inventories in importing countries have led to a complex market scenario. Domestic production continues to stabilize, but import demand remains sluggish due to economic headwinds and consumer spending issues.

Tactical Actions for the Next Three Months:

Securing product early is critical to mitigate supply risks and maintain market position.

Secure Product Early

• Lock in supplies now to avoid disruptions from logistics and disease outbreaks.

• Maintain Market Positioning, the goal is to retain your market share by ensuring steady supply.

Monitor Feed Costs and Production

• Take advantage of low feed prices to reduce costs to optimize margins.

• If you have production, scale it to align with market demand and cost fluctuations.

Diversify Sources:

• Source pork from multiple countries to mitigate regional disruptions to spread the risk.

• Build strong relationships with suppliers to secure priority access with suppliers and slaughterhouses.

Price Outlook

Pork Prices: Short-Term Stability with Potential Increases. Prices might remain stable but could rise due to supply chain issues and production challenges.

Beef prices: prices will fluctuate based on consumer demand and economic conditions through the 2Q. Be alert.

🏆Highlighting the relevant stories from top-down

The meat industry is witnessing significant shifts in global demand, consumer preferences, and technological advancements, which are reshaping the way we trade and market premium meats. This week's newsletter delves into the latest developments that will impact your business.

→ Pork Profits Face Long Recovery
→ China's Food Security Law
→ UK Meat Exports Surge
→ Barriers to Commercialization in AgriFoodTech

Pork Profits Face Long Recovery

Publisher: Agupdate, 01/06/2024
Pork profits are expected to take time to recover due to the ongoing supply chain disruptions and high production costs.

Key Points:

• Supply Chain Disruptions: Pork production is still recovering from the COVID-19 pandemic and ongoing supply chain issues.

• High Production Costs: Rising feed costs and labor shortages are contributing to higher production costs.

• Market Volatility: Pork prices are highly volatile, making it challenging for traders to predict future trends.

Trader's POV: The prolonged recovery of pork profits will require strategic adjustments in inventory management and pricing strategies to mitigate the impact of market volatility.

China’s Food Security Law

Publisher: Firstpost (Date: 24/05/2024)

China's new food security law aims to achieve self-sufficiency in food production by 2025, with a focus on domestic meat production.

Key Points:

• Domestic Meat Production: China aims to increase domestic meat production to reduce reliance on imports.

• Food Security Law: The law outlines measures to ensure food security, including subsidies for farmers and improved logistics.

• Impact on Trade: The law may lead to increased competition for imported meats and potential trade restrictions.

Trader's POV: China's food security law will likely lead to increased competition for imported meats, and traders should prepare for potential trade restrictions and adjustments in their supply chains.

UK Meat Exports Surge

Publisher: Brecon & Radnor Express| 01/06/2024

The UK's meat exports have surged due to the EU's shortage, with a significant increase in pork and beef exports.

Key Points:

• EU Shortfall: The EU's shortage of meat has led to increased demand for UK exports.

• Pork and Beef Exports: The UK has seen a significant increase in pork and beef exports to the EU.

• Market Opportunities: The shortage presents opportunities for UK meat traders to expand their exports.

Trader's POV: The EU shortage provides a significant market opportunity for UK meat traders to expand their exports and diversify their customer base.

Barriers to Commercialization in AgriTech

Publisher: agfundernews | 31/05/2024

AgriFoodTech startups face significant barriers to commercialization, including regulatory hurdles, high production costs, and limited market access.

Key Points:

• Regulatory Hurdles: AgriFoodTech startups face regulatory challenges in obtaining necessary permits and approvals.

• High Production Costs: High production costs, including labor and equipment expenses, can hinder commercialization.

• Limited Market Access: Limited market access and competition from established players can make it difficult for startups to gain traction.

• Insufficient In-House talent: without talent in place it’s very hard to move forward in a good pace.

Trader's POV: AgriFoodTech startups must address these barriers to commercialization by developing strategic partnerships, optimizing production costs, and targeting niche markets.

🗺️Trends - Discussion

👀 Rising Demand for Case-Ready Meat: A Market Shift

The demand for case-ready meat is climbing, particularly among younger consumers. According to the 2024 Power of Meat research, 87% of consumers now perceive case-ready meat as equal to or better than store-packaged meat.

Convenience and Efficiency 

Today's shoppers, especially the younger generation, seek convenient and efficient mealtime solutions. Case-ready meats minimize waste and offer new cuts and flavors, catering to this need for convenience and variety.

E-Commerce and Packaging 

Packaged meat is preferred in e-commerce, and with more consumers shopping online, retailers must ensure high-quality, attractively packaged cuts are available.

Market Insights and Retail Strategies 

Industry leaders, such as Tyson Foods and Perdue Premium Meat Company, emphasize the necessity of expanding case-ready portfolios to meet growing demand. This includes a variety of cuts, proteins, and value-added items.

Consumer Acceptance and Marketing 

Case-ready meats offer extended shelf life, reduced prep time, and easier storage. They also provide an opportunity for brands to connect with consumers through on-pack messaging, enhancing brand loyalty and customer education.

Product Expansion 

Companies are diversifying their case-ready offerings. Tyson Foods, for instance, is expanding its product line to include new beef and pork items, as well as seasoned and marinated poultry.

Innovation and Sustainability 

Proportioned steaks and meat cuts are becoming a trend, reducing waste and optimizing value. Innovations in packaging, such as easy-open and freezer-ready options, are also gaining acceptance.

Labor Challenges 

Retailers face ongoing labor challenges, making case-ready meats a labor-saving solution. This allows meat department employees to focus more on customer service.

The rising demand for case-ready meat is reshaping the meat industry. By focusing on convenience, quality, and variety, retailers and suppliers can meet evolving consumer needs and capitalize on this growing market trend.

More Insights

• Consumer Support: Brands like Farmer Focus see increased sales due to consumer preference for 'better for you' products.

• Expansion Strategies: Tyson Foods and other companies are continuously innovating and expanding their case-ready product lines to stay competitive.

• Marketing Tips: Highlighting features like freshness, quality, and convenience resonates well with consumers.

Takeaways

The meat industry must adapt to the growing demand for case-ready products by expanding portfolios, innovating packaging, and focusing on consumer education to maintain market relevance and growth.

^{This article is a summary of an excerpt from the May 2024 issue of Supermarket Perimeter. You can read the entire Case-ready Meat feature and more in the digital edition here.}

3 ways I can help when you ready:

✅ 1:1 Strategy Sessions for Asian Market Entry (30 minutes)

• Understand local preferences and regulations.

• Adapt your product offerings for the Asian market.

✅ Global Partnership Development

• Build reliable distribution channels with local partners.

• Ensure product freshness and quality from production to consumer.

✅ Sales Training for Global Teams (Check video for an example)

• Enhance marketing and sales strategies for Asia.

• Leverage local media and influencers to boost brand awareness.

💎Did you know?

Japanese electric Spoon Enhances Salty Taste and Promotes Healthier Eating!

Japan has introduced an electric spoon that enhances the salty taste of food without adding extra salt. This innovative utensil aims to reduce sodium intake while satisfying cravings for salty flavors.

The electric spoon uses a mild electric current to stimulate taste buds, making food taste saltier without extra sodium. This is beneficial for people with dietary restrictions, such as those managing hypertension.

Reducing sodium is crucial for heart health. The spoon allows for flavorful eating without the negative impacts of high salt intake, supporting healthier dietary practices.

The spoon is user-friendly and versatile, suitable for everyday meals. It enhances various foods' flavors, making healthy eating more enjoyable.

Takeaways

• Health Impact: Helps reduce sodium intake, benefiting heart health.

• Technology: Uses an electric current to enhance saltiness.

• Usability: User-friendly and versatile for daily use.

• Market Potential: Appeals to health-conscious consumers.

The electric spoon is a significant advancement, offering a practical solution to reducing sodium intake while maintaining flavor. This innovation supports healthier eating habits and could become a kitchen staple, revolutionizing how we season our food.

That's all for this week Did you find this useful? Subscribe to this weekly newsletter to stay updated on Frozen Meat Trends and Food Tech.

Stay tuned for more updates next week.

Warm regards,

Laura Valls