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- #27 The Meat Traders' Journal
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The Meat Trader’s Journal #27
Ukraine Beef Exports, US pork Demand, Above Food Acquires Foodys
The meat industry sees significant shifts in global trade, domestic demand strategies, and plant-based acquisitions, reshaping market dynamics for traders and producers alike.
🔓Market Movers & Shakers Intel
Market Insights: US Market Beef & Hog
In this video, Brownfield’s Brent Barnett and ag economist Scott Brown talk hog inventory being up 1%. They also recap the USDA’s June Acreage Report from the USDA that came out on Friday.
Summary:
Live fed cattle were down by a dollar while feeder cattle markets were steady to $3 higher.
August live cattle futures contract was up $2, and the August feeder cattle contract was up a dollar.
The lean July hog features contract was down $2.30, and the port cutout value lost a160.
The direct cash cattle trade was pretty sluggish throughout the week.
For the week ending June 29th, there was a run of 69,000 head of cattle, which is 11,000 head less than the previous week.
On the hog side, there was a bigger run this week of 2.42 one million head of Hogs.
Cold storage data showed that beef stocks were down by a half a percent, while pork stocks were down 99.4%.
Producers need to keep an eye on the cold storage data, although it is just another little bit of information to consider.
I will send in the What’s App Group Chat, the update of Pork and Beef Imports Summary for Korean Market. If you are not in the group, check here.
Example:
Pork Summary
🏆Highlighting the relevant stories from top-down
→ Ukraine increases frozen beef exports
→ US pork industry focuses on domestic demand
→ Above Food acquires Foodys in plant-based sector
Ukraine Increases Frozen Beef Exports
Publisher: Ukraine's frozen beef exports surge despite ongoing conflict, signaling resilience in the country's meat industry.
Key Points:
Ukraine exported 3,700 tons of frozen beef in January-May 2024, a 37% increase from the same period in 2023.
The main destinations for Ukrainian frozen beef were China, Azerbaijan, and Kazakhstan, diversifying export markets.
Despite challenges, Ukraine's meat industry demonstrates adaptability and maintains production capacity.
Laura's POV: Ukraine's ability to increase beef exports amid conflict showcases the resilience of its meat sector. Traders should monitor this trend for potential supply chain diversification and emerging market opportunities.
US Industry Focus on Domestic Demand
Publisher: Pork Business (02/07/2024)
The National Pork Board appoints Angie Krieger Fleming to lead domestic demand initiatives, focusing on consumer preferences.
Key Points:
Fleming's role aims to align pork products with evolving consumer needs and preferences in the US market.
The initiative seeks to increase pork consumption through innovative marketing and product development strategies.
Collaboration with retailers and foodservice operators is emphasized to enhance pork's market position.
Laura's POV: This strategic focus on domestic demand could reshape the US pork market landscape. Traders should anticipate potential shifts in product offerings and marketing approaches, impacting both domestic and export dynamics.
Above Food Acquires Foodys in Plant-Based Sector
Publisher: Vegconomist (02/07/2024)
Above Food's acquisition of Foodys strengthens its position in the plant-based market, signaling continued growth in alternative proteins.
Key Points:
The acquisition expands Above Food's portfolio with Foodys' plant-based meat alternatives and functional foods.
This move is part of Above Food's pre-IPO strategy, indicating confidence in the plant-based sector's future.
The deal aims to leverage synergies in distribution networks and product innovation.
Laura's POV: Above Food's expansion underscores the growing importance of plant-based proteins in the meat industry. Traders should consider how this trend might influence traditional meat market shares and consumer preferences.
🗺️Trends - Discussion
👀 Key Trends in Meat Consumption
✅Strong Meat Consumption
Despite various challenges, meat consumption remains robust. Around 80% of Americans describe themselves as meat eaters, and nearly 98% of households purchase meat regularly. Economic conditions have influenced shopping habits, with many consumers opting to cook at home more often and recreate restaurant-style meals (Meat Institute) (www.fmi.org).
✅Impact of Inflation
Inflation continues to affect consumer behavior, leading many to adjust their meat purchasing habits. About 73% of consumers have changed how they buy meat to save money, either by purchasing smaller packages or buying in bulk (Meat Institute).
✅Growing Interest in Value and Private Labels
Value and private label meat products are gaining popularity as consumers seek cost-effective options. This trend is evident as private label offerings now constitute a significant share of the market (NIQ).
✅Ethnic and Diverse Meat Options
There is an increasing demand for ethnic meats and diverse culinary options. This trend is driven by a growing multicultural population and a desire for new and unique flavors. For instance, sales of chorizo and other ethnic meat products have seen substantial growth (NIQ).
✅Shift from Plant-Based Alternatives
The initial surge in plant-based meat alternatives has slowed, with a notable decline in sales. Consumers are returning to traditional meat products, partly due to the price and taste advantages of real meat over alternatives (WATTPoultry.com).
✅Increased Demand for Packaged Poultry
Poultry remains a dominant sector, with packaged chicken products seeing a rise in consumption. Factors such as urbanization, health consciousness, and competitive pricing contribute to this trend (FHA-FnB).
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?
The Frozen Plastic that is Leading the Way
The plastic frozen food packaging market is on a rapid growth trajectory, currently valued at around $45.87 million in 2022 and projected to reach approximately $68.30 million by 2030, growing at an annual rate of about 5.2% (Data Bridge Market Research) (Data Bridge Market Research). This growth is driven by the increasing demand for convenient and durable packaging solutions for frozen foods.
Some of the major players in this market include AVPack Plastic Manufacturers (South Africa), Suzhou Yuxinhong Plastic Packaging Co., Ltd. (China), and Coveris (UK) (Data Bridge Market Research). These companies are leading the charge in developing innovative plastic packaging solutions that meet the needs of today's market.
Why this plastic is Superior
Why? | Explanation | Source |
|---|---|---|
Excellent Barrier Properties | Modern plastics effectively protect frozen food from moisture, oxygen, and other external factors, which helps extend the shelf life of the products. This is crucial for maintaining the quality, nutritional value, and taste of frozen foods | |
Durability and Strength | Today's plastic materials are more durable and can withstand temperature fluctuations and physical impacts. This ensures that frozen food remains intact and safe throughout the supply chain, from production to consumer | |
Cost-Effectiveness | Compared to materials like glass or aluminum, plastic is more cost-effective. It offers a balance of low cost and high performance, making it a preferred choice for manufacturers and consumers alike | |
Versatility | Modern plastics can be molded into various shapes and sizes, accommodating a wide range of frozen food products. This allows for customized packaging solutions that meet specific needs, such as portion control, ease of use, and aesthetic appeal | |
Enhanced Consumer Experience | Plastic packaging often includes features like easy-open seals and resealable zippers, improving the consumer experience by making it easier to handle, store, and access the food | |
Environmental Considerations | Although traditional plastics have been criticized for their environmental impact, the industry is moving towards more sustainable options. Innovations in biodegradable and compostable plastics, along with increased recycling efforts, are helping to mitigate these concerns |
The Asia-Pacific region dominates the market, driven by rising consumption of frozen foods in countries like China and India. North America is expected to be the fastest-growing region due to the high consumption of frozen food products.
The competitive landscape is marked by high levels of innovation and investment in research and development. Companies are continuously seeking to improve their products and adopt new technologies to stay ahead in the market. The growth of e-commerce also demands robust and user-friendly packaging solutions for frozen food delivery.
In summary, the advancements in plastic materials used for frozen food packaging offer superior protection, durability, cost-effectiveness, and versatility compared to traditional materials. The industry's shift towards sustainability further enhances the appeal of modern plastic packaging. For meat importers, producers, slaughterhouses, and others in the supply chain, investing in these innovative packaging solutions can lead to better product quality, reduced costs, and improved the next step in your supply chain.
That's all for this week!
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Warm regards,
Laura Valls