Bord Bia held its annual Meat Prospects Seminar in Dublin today amid growing optimism about the future of the meat sector following this week`s announcement of the opening of the US market to Irish beef. The event brought together all the major players in the Irish meat industry at government, producer and processor levels to receive presentations on meat market developments and consumer insights from Bord Bia sector managers and international speakers.
Sector Updates
Bord Bia sector experts outlined the challenges faced by the beef and pigmeat sectors in 2014 as well as the strong performance of the sheepmeat and poultry sectors. The 2015 outlook for beef and sheepmeat was described as positive based on tightening supplies and increased consumption internationally. The potential for increased exports with the opening of the US market for beef and the positive steps towards gaining access to the Chinese were also highlighted.
Strong demand for Irish pigmeat in Asia will help to offset the difficulties caused by the closure of the Russian market to EU pigmeat in 2014. Irish poultry consumption for 2014 ended 8% higher and this positive trend is expected to continue this year.
International Perspectives
A number of invited speakers gave insights into markets in the US, UK, Russia, Germany and Asia in addition to an update on their experiences in the marketplace from two of Bord Bia`s Origin Green Ambassadors.
USA
In his presentation Mr. Barry Friends of Technomic Inc, USA gave an overview of the opportunities for meat in US foodservice industry which had a good year in 2014, growing approximately 2% as the improving US economy allowed consumers to indulge themselves a bit more than in 2013.
Beef, chicken, and pork are the most popular proteins on restaurant menus. While the high cost of beef has caused operators to shift some emphasis to chicken and pork in 2014, beef remains “top of mind” with consumers, and operators are sensitive to that, finding ways to satisfy patrons with less-expensive cuts or smaller portions, he said.
He recommended that Irish protein exporters take a “premium platform” approach to the US market with initial sales thrust in the heavily-populated northeastern corridor from Philadelphia to Boston. By emphasizing Ireland’s “Protein Heritage” and “Green” farming practices, producers may leverage increasing US consumer demand for meat from sustainably and humanely raised livestock.
The Technomic report endorsed Bord Bia`s initiative to secure USDA “Process Verified” designation to associate Irish meats with desirable growing and processing methods that can be linked to a “brand” and facilitate differentiation in the retail and foodservice channels.
Mr. Friends added that many operator types exist in the burgeoning ($700 billion) US Foodservice Industry, but the “Full Service Restaurant” (FSR) segment, with 300,000 outlets, is best suited to make use of premium Irish proteins. In contrast, the “Limited Service Restaurant” (LSR, a.k.a. “fast food”) segment is focused on low cost/low price and speed, preferring ingredient products that are further processed and as inexpensive to use as possible.
In conclusion Barry Friends said that by all appearances, it would be difficult to imagine a better time for Irish meat producers to be entering the US market with high-quality, competitive, and differentiable products.
ASIA
Mr. Nick Miles, Asia-Pacific Region Manager, IGD shared his views on how Asia’s grocery markets are rapidly evolving and how the meat category is keeping up with retail and consumer trends and demands. He gave examples of best in class in-store execution and tactics that retailers are using to engage shoppers further.
UK
Mr. Edward Garner, Communications Director of Kantar presented his outlook for the UK retail and consumer market, highlighting how the industry is managing the retail price squeeze, home delivery, search for differentiation and the role of ethical claims. He also dealt in detail with the positioning of beef within the UK retail industry.