IS THE GLOBAL POULTRY
INDUSTRY IN CRISIS?
There are approximately
23 billion chickens on the
planet right now. The world
is producing a lot of poultry,
but what opportunity
does this present to
food manufacturers?
Miguel Campos of
Advanta, explains.
Global meat production has
increased rapidly over the
last half-century, with total
production growing between 4 and
5 fold since 1961, according to Our
World In Data. All major meat types,
including poultry, beef and pork have
increased in absolute terms, but what
is truly astonishing is the changes in
share of the total global production of
different meats.
Poultry accounted for 12% of global
meat production back in 1961. By
2013, this tripled to around 35%.
Beef halved its market share and
pork’s proportion remained constant.
In total, poultry production has
increased 12-fold between 1961 and
2014.
The surge in poultry production
may be attributed to efficient use of
feed — only 3.3kg of feed is required
to produce one kilogram of poultry
meat. Compare this with pork which
requires 6.4kg and beef which
requires 25kg, and poultry reigns
supreme as the most cost-efficient
option. Poultry also has the lowest
land use per gram of protein and
produces much lower greenhouse
emissions than cattle.
Less food, land and energy mean
lower costs — and these savings can
be passed onto the manufacturer,
retailer and finally, the consumer.
What do these benefits mean for
food manufacturers? Unfortunately,
exploiting the popularity of poultry for
products isn’t that simple. Despite the
growth in market share, the poultry
industry is experiencing challenges
including ongoing volatility of grain
prices, drought and trade issues — all
of which impact the cost of poultry.
Asia, Africa and Europe are boasting
the best-performing poultry
production industries in the world
with regards to profits, but Brazil is
currently challenged by oversupply
of poultry. This is partially due to
a recent safeguard on Brazilian
chicken imports set by China and EU
restrictions on several Brazilian export
plants.
Brazilian poultry is also experiencing
restrictions in the Middle East, due
to amendments of requirements
for animal slaughtering in line with
Islamic Law. Saudi Arabia’s regulatory
board expressed concerns about
Brazilian slaughterhouses, believing
improvements need to be made to
meet updated halal standards. As
Saudi Arabia is one of the main
destinations for Brazilians chicken
exports, poultry processors from
Brazil need to act fast to avoid losing
a large Middle Eastern customer
base.
For food manufacturers in the Middle
East, this may mean finding new
poultry sources from alternative
exporters to keep up with production.
This represents the wider notion of
the fast-changing poultry supply
chain, which food manufacturers
across the world must remain
vigilant of Changing regulation
isn’t the only challenge for poultry
processors. Food manufacturers are
now demanding a change in poultry
packaging, some of which is driven
by government legislation. From
April 2022 for instance, the United
Kingdom will introduce a tax on the
import of plastic packaging with less
than 30 per cent recycling content.
Poultry processors that import to
Britain need to act now to meet these
requirements to ensure margins aren’t
damaged by taxation.
A drive for sustainable packaging
reflects an industry-wide shift
for food manufacturers and their
environmental responsibility. While
poultry is an environmentally friendly
animal protein, it is somewhat of
a juxtaposition to package it in
damaging and non-degradable
packaging.
Food manufacturers have long opted
for recyclable packaging for their
other products. However, some
products, such as whole poultry,
are notoriously difficult to package
in sustainable options. To give food
manufacturers more options, Advanta
has brought its aluminium whole
poultry tray that is compatible with
skin pack sealing, to market.
Poultry production has increased
dramatically during the last 50 years.
Poultry producers must deal with the
challenges of over-supply, while food
manufacturers leverage the cheaper
poultry prices and expand poultry
product ranges significantly, with
sustainable packaging.
Organic
$$$
GLOBAL ORGANIC
FOOD SALES
BREAK USD 100
BILLION BARRIER
Worldwide organic food & drink sales
surpassed USD 100 billion for the first
time in 2018. New research by Ecovia
Intelligence shows that global sales
increased by 6% to USD 105 billion
last year.
According to a new report titled Global
Organic Food & Drink Market Trends
& Outlook the largest markets for
organic products are in North America
and Europe. The combined revenue
share of these two regions is 90%.
Although sales remain concentrated
in the ‘western world’, the share has
declined from 97% in 2005. A number
of countries with a strong tradition
of exporting organic crops are now
developing strong internal markets;
these countries include China, India,
and Brazil.
In terms of country markets, the US
has the largest market for organic
food & drink, comprising about 45%
of global sales. The German, French,
Italian and Canadian markets are the
next largest. In terms of market share,
Denmark leads with almost 14%
share of retail food sales. The highest
spenders of organic products are in
Switzerland, Denmark, Sweden and
Austria.
Rising consumer awareness of
organic products and widening
availability are two major drivers of
global growth. Distribution of organic
foods is increasing in supermarkets,
discounters, drugstores, pharmacies,
and the catering & foodservice sector.
Organic ingredients are being used
in a growing number of European
and North American foodservice
establishments. Chained outlets,
including McDonald’s and Pret A
Manger, are also making commitments
to organic product sourcing.
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