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Meat Trader's Journal Newsletter #15
The best Meat Trading Newsletter for Meat Traders
Welcome to the only One Newsletter for Global Meat Traders!
đź‘‹ Hi, I'm Laura, and welcome to my newsletter, The Meat Traders' Journal. I publish every Tuesday and Thursday, offering insights into the meat industry market, including specific information on pork, beef, and chicken based on different countries. Additionally, I cover food innovation and topics relevant to our readers, stemming from your email questions. Follow along to gain a comprehensive understanding of how the meat market operates globally and what it means for you.
Market Intel Weekly Nugget
Yesterday Iran send missiles to Israel and that increase the tension in the supply chain and logistics. The price of oil already started to rise.
Despite the decrease in consumption of Chinese market, at the beginning of April 51MT of Belgium Pork meat arrived to China since the banned imposed to Belgium due to ASF.
It’s expected that China will decrease the import of cereal due to their increase of their own production.
Possible scenarios:
Impact on Prices
Corn and wheat are key components of livestock feed, used extensively in the diets of pigs, cattle and chicken. An increase in production typically leads to more availability and potentially lower prices for feed, assuming demand remains constant.
China’s increased production could make feed grans more available in local market, potentially reducing the need for imports and lowering feed costs in China. Lower production costs for livestock and poultry, could make cheaper to raise pigs, cattle and chickens.
If Brazil’s corn production would be lower than expected and exports are reduced, then the prices of feed not only in Brazil will be higher and dependents markets on Brazil will be affected. Higher feed costs would increase the cost of livestock and poultry production.
Impact on Market dynamics
Cheaper feed costs in China could improve profitability for farmers and expand production in China, increasing the supply of meat in local market and lowering meat prices if demand does not increase proportionately.
Cost Pressure in Brazil and Globally that could reduce the production. That means tighter meat supplies and potentially higher costs for meat, local and international.
Countries that depend on Brazil corn and cereal exports would need to find alternatives and that will affect the global grain and feed market. If China reduce their imports then the global price will experience shifts in demand and pricing.
Supply Chain Adjustments
Fluctuations in availability always produce adjustment in feed formulation. It could be substitution of one grain for others or readjust the nutritional content and growth rate of the animals.
Farmers could experience the need to make a strategic decision based on feed costs. Maybe chose raising fewer heads or switch to more cost-effective breeds and species.
Prices
lower production costs leads to lower retail prices.
The weather in North of Europe is still cold and rainy so the BBQ season is has been delayed. Usually after eastern season the price of pork decreases but this year is different. The pork prices are stable and so less pressure in prices.
In the USA the pork prices in 2024 started depreciated but even though the production levels forecasted could be lower than the European levels, it is expected that the consumption will rise as summer gets close.
USA and Brazil are the countries that are exporting the most to Asia, despite the weak demand of China.
The frozen stock in Europe is very low, which allow Europeans to defend their price but if there is the a exporting demand then there will be problems to find pigs to slaughter.
Iran-Israel. Disruptions.
The recent escalation of tensions between Iran and Israel, marked by Iran's attack on Israel and the seizure of an Israeli-linked container ship near the Strait of Hormuz, could have significant implications for the global supply chain and goods at sea.
This situation could impact the supply chain and maritime trade:
1. Disruption in Shipping Routes: The seizure of the container ship near the Strait of Hormuz and the potential for further attacks could disrupt shipping routes in the region. This could lead to delays in the transportation of goods, affecting supply chains that rely on timely deliveries by sea.
2. Increased Shipping Costs: Heightened tensions and potential risks to ships in the region could result in increased insurance premiums for vessels passing through volatile areas. This, in turn, could lead to higher shipping costs, impacting the overall cost of goods transported by sea.
3. Supply Chain Disruptions: Any escalation of conflict between Iran and Israel could lead to further disruptions in the supply chain, affecting the movement of goods between regions. Businesses may face challenges in sourcing raw materials or delivering finished products, impacting production and distribution processes.
4. Market Volatility: The uncertainty surrounding the situation in the Middle East could contribute to market volatility, affecting commodity prices and trade flows. Businesses may need to adapt to changing market conditions and geopolitical risks to mitigate potential disruptions to the supply chain.
This is not new and we already have experienced with the Middle East conflict which is often referred as a proxy war between Israel and Iran. Too early to say yet but as mentioned above, trade will suffer from one way or another.
APRIL 2024: Are you attending any Food and Meat Fair?
🌟 If you're passionate about the latest in the food and beverage industry, especially meat, then you're in for a treat! There's a world of events out there for you. Whether you're looking to network, discover new products, or dive deep into industry trends, these gatherings are where you want to be.
Market of Good Taste - The Slow Food Fair from April 4 to 7 in Stuttgart (Germany). This event focuses on promoting good, clean and fair food practices.
Salon Gourmets from 22 to 24 April in Madrid, Spain. This event showcase high-end products and the latest trends.
ProPack Vietnam from April 3 to 5 in Ho Chi Minh City. This is a packaging and food processing technology exhibition offering insights into the latest innovation in the industry.
FHA-Food & Beverage Asia running from April 16 to 18 in Singapore. This massive trade show highlights the latest trends and innovations in the food and beverage industry across Asia.
Korea Pack occurring simultaneously with FHA-Food & Beverage Asia from April 23 to April 26 in Seoul, Korea. It focuses on packaging machinery and technology, which is essential for the food and beverage industry.
And hey, if you know of any meat-industry must-attends that I haven't mentioned, let's hear about them! Sharing is caring, and your fellow readers might just find their next destination through you.
Did You Know? đź‘€
Pork Belly, The Accordion Protein!
I found this short made by MaxThemeatGuy which got my attention and it is call Belly Accordion.
“He wrote that Pork belly is the perfect accordion of protein. Slicing in that shape drastically increases the surface area, allowing for maximum crispiness and more fat rendering. Just make sure the pork belly is very cold prior to slicing to make it easier!” Maxthemeatguy.
If you have access to a piece of belly like this, no excuse to prepare such an exquisite dish like MaxTheMeatGuy.
One last thing…
If you are aiming to strengthen your business foothold in the APAC Market in this areas:
Market Expansion and helping with client Acquisition
New Market Fit with product/specification development
Sales Growth and Price Optimization with Market Intel
Sales Training and objection ideation to gain new clients
There are 3 ways that Meat Trading Hub (MTH) can help you when you are ready:
âś…Your Supply and Purchasing Advisor 1:1
âś…I create win-win partnerships between you and strategic importers and/ or suppliers
âś…On-line/off-line Sales Training sessions to elevate your Global sales team
Schedule a discovery call. Though times are coming and we all need to source and sell with better margins, right?