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- #26 The Meat Traders' Journal
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The Meat Trader’s Journal #26
Ethical Food Boom, Japanese Firm innovation, Future Pork Consumer, Hogs and Pigs updates, and more
The meat industry is witnessing significant shifts in consumer preferences, technological advancements, and market dynamics, reshaping the landscape for traders and producers alike.
🔓Market Movers & Shakers Intel
Market Insights: Thailand’s Chicken
Production Growth
Thailand's chicken production will grow modestly in the coming years. The Office of Agricultural Economics predicts a small increase of 0.09% in broiler production for 2024. This means about 1.95 billion chickens or 3.19 million tonnes of meat.
Export Projections
Thai chicken exports are set to rise in 2024. The Kasikorn Research Center expects chicken exports, including fresh, chilled, and frozen products, to reach USD 4.16 billion. This is a 2% increase from last year.
Domestic Consumption
Domestic consumption of chicken in Thailand will also increase slightly by 0.05% in 2024, reaching 2.07 million tonnes. This is due to economic recovery and government support.
Long-term Outlook
From 2023 to 2025, Thailand’s chicken production is expected to grow by 2.5% to 3.5% each year. This growth is due to rising domestic demand and more export opportunities.
Export Market Dynamics
Processed chicken exports, making up 67% of total exports, will grow by 1.4% in 2024. Fresh, chilled, and frozen chicken exports, which are 33% of total exports, are expected to increase by 3.3%. This growth is driven by demand from China, South Korea, and Saudi Arabia.
Challenges
Thai chicken faces competition because of higher prices compared to other countries. This is due to Thailand's reliance on imported feed, which raises production costs.
Global Context
The global poultry market is expected to grow by 1.5% to 2% in 2024. Poultry is set to be the fastest-growing protein in the global market.
Thailand's chicken production is growing steadily. Exports and domestic consumption are both increasing. However, higher production costs pose a challenge. Overall, Thailand's chicken industry remains strong and important in the global market.
Pork in Thailand
Thailand's pork production has been hit hard by the African Swine Fever (ASF), causing a 35-40% decline in 2022. This led to pork prices increasing by about 30% (USDA Foreign Agricultural Service) (USDA Foreign Agricultural Service).
Domestic Consumption
Despite these challenges, pork remains a staple in Thailand. Consumption is expected to reach 1 million metric tons by 2026, growing at 0.3% annually (ReportLinker). This indicates a steady demand for pork among Thai consumers.
Market Dynamics
Thailand banned live swine exports due to ASF but continues to resist pork meat imports to maintain self-sufficiency (USDA Foreign Agricultural Service). Key players like Charoen Pokphand Foods and Betagro Group are crucial for the industry's recovery and growth (6Wresearch).
Given the reduced domestic production due to ASF, there may be opportunities for pork imports to fill the supply gap. However, Thailand has traditionally resisted importing pork meat, preferring self-sufficiency (USDA Foreign Agricultural Service).
Key Considerations
Market Demand: There is a consistent demand for pork in Thailand despite production issues.
Economic Recovery: As the economy recovers, consumers will likely have more purchasing power.
Government Policies: Be aware of potential resistance to pork imports due to self-sufficiency policies.
There is a potential market for imported pork in Thailand due to the domestic production shortfall caused by ASF. While consumer demand remains stable and the economy is on a recovery path, exporters should closely monitor government policies regarding pork imports. If these policies become more favorable, Thailand could present a valuable market for pork producers.
🏆Highlighting the relevant stories from top-down
→ Ethical Food Trends Boosting Farming
→ Japanese Firm’s Plant-Based Innovations
→New Research Helps Identify The Future Pork Consumer
Ethical Food Trends Boosting Farming
Source: Tastetomorrow.com
Publisher: Reuters, 22/06/2024
The ethical food boom benefits farming practices and reshapes consumer preferences.
Key Points:
Consumers increasingly favor ethically sourced meats, driving demand for sustainable products.
Farmers adopt sustainable practices to meet ethical standards and gain consumer trust.
Ethical certifications enhance brand trust and marketability, influencing purchasing decisions.
Laura's POV: Embracing ethical practices is not just a trend but it has become a necessity, with consumer demand pushing the industry towards sustainability.
Japanese Firm’s Plant-Based Innovations
Publisher: Food Dive, 20/06/2024
A 220-year-old Japanese firm is entering the US plant-based market, challenging established players with innovative products.
Key Points:
The Japanese company is leveraging its centuries-old expertise in traditional food production to create unique plant-based alternatives.
Their approach focuses on replicating the texture and flavor of meat using novel plant-based ingredients and processing techniques.
The firm's entry into the US market signals increasing global competition in the plant-based sector, potentially driving innovation and quality improvements.
Laura's POV: This development underscores the growing importance of plant-based alternatives in the meat industry. Traders should closely monitor this trend, as it may impact traditional meat demand and open new opportunities in the alternative protein market.
New Research Helps Identify The Future Pork Consumer
Publisher: National Hog Farmer (25/06/2024)
Recent research provides insights into evolving consumer preferences and behaviors shaping the future pork market.
Key Points:
Younger consumers are showing increased interest in pork products, particularly those marketed as sustainable and ethically sourced.
Convenience and versatility are becoming key factors in pork purchasing decisions, driving demand for pre-prepared and easy-to-cook options.
Health-conscious consumers are seeking leaner pork cuts and products with enhanced nutritional profiles.
Laura's POV: Understanding these emerging consumer trends is crucial for meat traders. Adapting product offerings and marketing strategies to align with these preferences could lead to significant market advantages and help secure long-term customer loyalty.
🗺️Trends - Discussion
👀 Ethical Meat: Market Trends and Business Opportunities
What is Ethical Meat?
Ethical meat refers to products produced with heightened attention to animal welfare, environmental sustainability, and fair labor practices. It aims to meet growing consumer demand for transparency and responsibility in the meat industry.
Key Market Insights:
73% of global consumers would change habits to reduce environmental impact (Nielsen, 2018)
Ethical food market growing at approximately 8% annually
Millennials and Gen Z driving demand, influencing older generations
Categories in Ethical Meat:
Environmentally friendly
Animal welfare-focused
Fair trade
Locally sourced
Organic
Leveraging Ethical Meat in Business:
1. Enhance Transparency:
Implement traceability systems. Use QR codes on packaging linking to information about farms, animal rearing practices, and processing methods.
2. Improve Animal Welfare:
Invest in or source from farms with higher welfare standards (free-range, pasture-raised, hormone-free).
3. Reduce Environmental Impact:
Adopt sustainable farming methods, renewable energy in processing, and eco-friendly packaging.
4. Support local Communities:
Develop relationships with local farmers and ensure fair labor practices.
5. Offer Different Options:
Offer a range of ethical meat products for various consumer segments and price points.
6. Educate Customers:
Use B2B marketing to explain benefits and market potential of ethical meat.
7. Innovative Processing:
Research technologies to make ethical meat production more cost-effective.
Price Point Comparison (Example)
Conventional beef: $4/lb
Ethical (grass-fed) beef: $7/lb
Organic beef: $9/lb
Profitability Factors:
Premium Pricing: Consumers are willing to pay more for ethical products.
Brand Loyalty: Ethical practices build strong customer relationships.
Market Growth: The ethical food sector is expanding rapidly.
Risk Reduction: Better practices can prevent costly scandals or recalls.
Future-Proofing: Aligns with growing consumer trends and potential regulations.
Ethical meat presents significant opportunities for growth and differentiation. It allows businesses to meet evolving consumer demands, potentially increase profit margins, and contribute to a more sustainable meat industry. Investing in ethical practices is key to future-proofing businesses in this changing market landscape.
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?
Alternative Pork Cuts are Gaining Popularity
The pork industry is seeing increased interest in lesser-known cuts, driven by factors such as:
Cost-effectiveness: Alternative cuts often offer value compared to traditional favorites.
Culinary innovation: Chefs and food enthusiasts are exploring new flavors and textures.
Whole-animal utilization: Using more parts of the pig reduces waste.
Emerging alternative pork cuts include:
Pork Secreto
Description: A thin, fan-shaped muscle from the shoulder, prized for its rich marbling.
Culinary Uses: Best grilled or seared to highlight its marbling and rich flavor.
Market Potential: High, due to its unique texture and flavor, making it a favorite among chefs and food enthusiasts looking for innovative menu options.
Pork Brisket (Belly)
Description: While pork belly is well-known, using it as a brisket-style cut involves slow-cooking to achieve a tender, juicy result.
Culinary Uses: Suitable for smoking, braising, or slow-roasting, similar to beef brisket.
Market Potential: Moderate to high, given the popularity of slow-cooked dishes and the familiar appeal of pork belly in new applications.
Pork Oysters
Description: Small, tender muscles from the hip, often compared to beef tenderloin in terms of tenderness and flavor.
Culinary Uses: Can be grilled, roasted, or used in high-end dishes where tenderness is key.
Market Potential: High, especially in upscale dining settings where tender, flavorful cuts are prized.
Pork Skirt Steak
Description: A flavorful cut from the plate primal, similar to beef skirt steak.
Culinary Uses: Ideal for marinating and grilling, fajitas, or stir-fries.
Market Potential: Moderate to high, as it offers a familiar cooking method with a new pork twist, appealing to both home cooks and restaurants.
Pork Hock
Description: Traditionally used in soups, it is gaining popularity as a main dish when slow-cooked.
Culinary Uses: Perfect for braising, slow-cooking, or smoking to achieve a tender, fall-off-the-bone result.
Market Potential: Moderate, with increased interest from those looking for cost-effective, flavorful options that make the most of whole-animal utilization.
Business Impact
Diversifying Product Lines
By introducing these alternative cuts, your business can offer a wider range of products that cater to different culinary trends and consumer preferences. You would need to persuade the importer and distributor who are comfortable working only with well-known cuts.
This diversification can help attract a broader customer base, including gourmet chefs, food enthusiasts, and cost-conscious consumers. Distributors might become interested in becoming importers.
Increasing Profits on Underutilized Cuts
These cuts often come from parts of the pig that are traditionally less utilized, providing an opportunity to increase overall carcass value.
Educating customers about the unique qualities and cooking methods for these cuts can create a niche market willing to pay a premium for specialty items.
Customer Education on Preparation Methods
Providing recipes, cooking tips, and serving suggestions can enhance customer experience and satisfaction.
Partnering with chefs and food influencers to showcase these cuts can boost awareness and demand.
That's all for this week!
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Warm regards,
Laura Valls