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Here is the weekly edition #21 of The Meat Trader's Journal newsletter for the third week of May 2024, focused on recent market trends and their potential impact on marketing strategies and operations in the meat and food tech industry.

🔓Market Movers & Shakers Intel

Pork Meat Market Analysis: Japan

Japan remains a vital market for imported pork with consistent demand.

The trend indicates a steady increase in imported pork, with Spain and Canada leading Japan’s supply needs.

Japan has seen a 15% rise in pork imports in 2024 compared to 2023, suggesting importers should consider increasing their volumes to capitalize on this opportunity.

Summary of Trends

Significant Increases:

• Loin: Steady Increase each months, particularly from January to February (22.5%)

• Belly: Significantly rise from February to March (18.7%), continuing the upwards trend into April.

• Shoulder: Noticeable increase from March to April (30.2%)

Decreases:

• Ham: Decreased by 8% from February to March but slightly rebounded in April.​

• Rib: Decline observed from January to February (-5.6%) but stabilized in March​.

• Collar: Minor decline from March to April (-3.2%)​.

Overall:

Total imports have shown a consistent increase, particularly from January to February (12%) and sustained growth into April (5%)​.

Tactical Actions for the Next Three Months:

Steady Demand for Pork Imports

• Japan's pork imports are projected to remain strong in 2024, driven by high demand and competitive pricing of frozen pork.

• Imports of chilled pork are balanced with current demands, with some substitution from beef to pork offset by higher import costs resulting from the weak yen in 2022 and 2023.

Increasing Demand for Prepared Pork Products

• Imports of prepared pork products are expected to grow in 2023 and 2024 as tariff cuts take effect, especially for ground seasoned pork used in sausage manufacturing.

• Countries that enjoy the benefits of reduced import tariffs under Japan's major economic partnership agreements (EPAs) include the United States, Canada, Mexico, Denmark, and the Netherlands.

Competitive Pricing Driving Sales

• The weak Japanese yen continues to cause customers to seek out the most affordable options, including Brazilian pork.

• US pork faces intense competition from Canadian and Mexican chilled pork and from defrosted Spanish pork being sold at retail.

Changing Consumer Preferences

• Traditional pork-heavy diets in regions like Asia-Pacific are gradually diversifying, with a rising interest in healthier and more sustainable protein sources.

• Plant-based and lab-grown meat products are gaining traction, challenging the dominance of conventional pork.

🏆Highlighting the relevant stories from top-down

Cutting-edge technologies are revolutionizing the meat industry, from optimizing supply chains to predicting consumer trends. This week's edition explores how these advancements are transforming marketing strategies and operations.

→ Pork export sales hit marketing year low
→ African swine fever outbreaks surge in EU
→ Trade adds value to beef production
→ Plant-based meat alternatives drive protein volume

Pork Export Sales Plummet

Publisher: Brownfield Ag News (20/05/2024)

U.S. pork export sales fell to a marketing year low, signaling potential challenges in the global pork market.

Key Points:

• Pork net sales for the week ending May 9 totaled just 7,800 metric tons, down 83% from the previous week.

• Reductions were reported for China, Mexico, and unknown destinations.

• Shipments of 27,800 metric tons were down 13% from the prior week.

Trader's POV: The sharp decline in pork export sales is concerning, as it may indicate reduced global demand or increased competition from other suppliers. Traders should closely monitor market conditions and consider adjusting their strategies accordingly.

African Swine Fever Outbreaks Surge in EU

Publisher: National Hog Farmer (20/05/2024)

The European Union experienced a significant increase in African swine fever (ASF) outbreaks in 2023, posing a threat to the region's pork industry.

Key Points:

• The number of ASF outbreaks in the EU more than doubled in 2023 compared to 2022.

• Poland, Romania, and Germany were among the countries most affected by the disease.

• ASF outbreaks can lead to trade restrictions and significant economic losses for pork producers.

Trader's POV: The surge in ASF outbreaks in the EU is concerning for pork traders, as it may lead to supply disruptions and price volatility. Traders should consider diversifying their sourcing strategies to mitigate the risks associated with ASF and other animal diseases.

Trade Adds Value to Beef Production

Publisher: Brownfield Ag News (20/05/2024)Overview: International trade plays a crucial role in adding value to U.S. beef production, according to industry experts.

Key Points:

• Exports account for approximately 15% of U.S. beef production.

• The top export markets for U.S. beef include Japan, South Korea, and China.

• Trade agreements and market access are essential for maintaining and growing beef exports.

Trader's POV: The importance of international trade for the U.S. beef industry highlights the need for traders to stay informed about trade policies and market access issues. Traders should also consider how to leverage the value-added benefits of trade to differentiate their beef products in the marketplace.

Plant-Based Meat Alternatives Drive Protein Volume

Publisher: vegconomist (20/05/2024)

Plant-based meat alternatives are driving significant growth in the overall protein ingredients market, according to a new report.

Key Points:

1. The global protein ingredients market is expected to reach $48.77 billion by 2028, up from $35.61 billion in 2021.

2. Plant-based meat alternatives are the fastest-growing segment of the protein ingredients market.

3. The increasing popularity of plant-based diets and the desire for more sustainable protein sources are fueling demand for meat alternatives.

Trader's POV: The rapid growth of the plant-based meat alternatives market presents both challenges and opportunities for traditional meat traders. While it may reduce demand for some meat products, it also suggests that consumers are seeking out new protein sources that align with their values and preferences. Traders should consider how to adapt their product portfolios and marketing strategies to capitalize on the growing interest in plant-based proteins.

🗺️Trends - Discussion

🌿Is Plant-Based Meat Truly Healthy?

Fortune Well recently published an intriguing article exploring the health benefits and drawbacks of plant-based meat alternatives. As these products gain popularity, it's crucial to consider their nutritional impact.

The good news? Plant-based meats often contain less saturated fat and no cholesterol compared to traditional meat. They can be a great option for those looking to reduce their meat consumption for health or environmental reasons.

However, not all plant-based meats are created equal. Many are highly processed and contain additives and high levels of sodium. So, while they can be a healthier choice, it's essential to read labels and choose wisely.

My take? Plant-based meats can be a valuable part of a balanced diet, but they shouldn't be seen as a one-size-fits-all solution. Moderation and mindful consumption are key as a complement of a usual intake of beef, pork and chicken.

What are your thoughts?

Have you tried plant-based meats? How do they fit into your diet?

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?

🌱Singapore’s New Chicken - A Step Towards sustainable Dining?🌱

This is for Innovators…

Big news from Singapore! A local store is now selling chicken made from cultured cells. That's right, lab-grown meat is hitting the shelves, making Singapore a pioneer in sustainable dining.

Why is this significant? Traditional meat production has a massive environmental footprint. Cultured meat promises to reduce land use, water consumption, and greenhouse gas emissions. Plus, it offers a cruelty-free alternative to conventional meat.

My take? This could be a game-changer for the food industry, potentially transforming how we think about meat production and consumption. However, the true test will be consumer acceptance and scalability. Will people embrace this innovation, or will it remain a niche product?

What do you think? Would you give lab-grown chicken a try?

What trader’s should be paying attention to?
The introduction of cultured chicken in Singapore highlights the growing consumer demand for alternative protein sources and the potential for these products to disrupt traditional meat markets. Traders should closely monitor the development of cultured meat and consider how it may impact their supply chains and marketing strategies.

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