1 prof hettie schönfeldt school of natural and agricultural sciences
TRANSCRIPT
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Prof Hettie SchönfeldtSchool of Natural and Agricultural
Sciences
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Current Issues
1. Little & declining knowledge of the positive role of red meat in nutrition and health
2. Environmental impact of the industry
3. Convenience, indulgence, traditional product
4. Value for money
Identified problems:– Lack of education & communication along the red meat
chain– Negative influence of media (nutrition, health &
environment) Brussels, 2009
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Current Issues
Increased globalization of the red meat industry
&
New food trends are observed
Provides a challenge to red meat industry:1. Increased possibility of international collaboration &
alignment 2. Encourages change in all sectors – “from farm to plate”3. Opportunity to increase consumer knowledge and thus
consumption
Brussels, 2009
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1. Increased possibility of international collaboration & alignment
● Globalization gained importance due to market liberalization & technology
● Severe consequences for market structures & strategies– From agriculture & food processing to food retail & service– Increased market concentration & density
> worldwide consumer preference – increase in large food companies> regional differentiation – increase in specialist products
● Meat consumption continually increasing– Increased impact on import / export + production
● The global system emphasizes:– Grain-fed cattle in feedlots– Special breeds that can graze more marginal & fragile habitats– Use of growth hormones and antibiotics– Environmental and social impact– Government subsidies & policy – International alignment in standards & policy
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World Meat Production
0
20
40
60
80
100
120
Beef Ovine Pork Poultry
Mil
lio
n M
etri
c T
on
s (C
WE
)
19701980199020002010
Source: FAO
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Major Meat Producers 2002
USAAust/NZChinaBrazilEUOther
USAEUChinaOther
USABrazilEUChinaOther
Aust/NZChinaOther AsiaEUAfricaOther
Beef
OvinePoultry
Pork
Source: USDA
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World Meat Trade
Source: FAO
0
2
4
6
8
10
12
Beef Ovine Pork Poultry
Mil
lio
n M
etri
c T
on
s
19701980199020002010
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The Impact of Trade Liberalization
(1,000 MT)
China PNTR (00)
Tokyo Round (78)
Japan Beef-Citrus Agreement (88)
Canadian Free Trade Agreement (89)
Korea Beef Agreement (93)
North American Free Trade Agreement (94)
Uruguay Round (95)
Japan SPS Agreement (84)
U.S. Beef Exports 1970-2000
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World Trade in Meat as a Percent of Production
Source: FAO
0%
2%
4%
6%
8%
10%
12%
14%
Beef Ovine Pork Poultry
Per
cen
t o
f P
rod
uct
ion
Ex
po
rted
1970198019902000
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Summary: Increased possibility of international collaboration & alignment
●The world market for meat products is growing
●Exporters have cooperated in opening markets for half a century
●Producers, exporters, importers and other role players should continue to cooperate in non-traditional ways to “raise all ships”
US Meat Export Federation
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2. Encouraged change in all sectors – “from farm to plate”
Consumers of today:
• Curious: searching authentic experiences more than products
• Realists: (very) careful to the quality/price relation of the acquired product/service
• Social: interested in relationships and situations that create “community”
• And then,…… informed (very),…… autonomous (they feel like deciding),…….. ethical….
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The South African consumer
●Population of 46 million people of which 79% are black Africans
●Classified according to LSM (Living standards measure) groups:– A marketing research tool to gain better understanding
of the socio-economic status of individual / group– SA is segmented into 10 LSM groups (10 being the
highest standard and 1 the lowest)– People are segmented according to their standard of
living>E.g. degree of urbanization, ownership of cars and major
appliances etc as variables
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The South African consumer market:LSM classification
(Source: SAARF, 2004)
010002000300040005000LS
M 1
LSM
2
LSM
3
LSM
4
LSM
5
LSM
6
LSM
7
LSM
8
LSM
9
LSM
10
Popu
latio
n ('0
00)
35 % of LSM 6 to 10 are black35 % of LSM 6 to 10 are black
15
0.0
5.0
10.0
15.0
20.0
1 2 3 4 5 6 7 8 9 10
SU-LSM group
% o
f S
A p
opula
tion
0
5
10
15
20
Avera
ge m
onth
ly in
com
e
(R'0
00)
% of SA population Average monthly income (R'000)
The SU-LSM segments: Proportion of SA population and average monthly income
(SAARF, 2005)
1616
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
LSM 1-3 LSM 4-5 LSM 6-8 LSM 9-10
%
2001
2002
2003
2004
2005
2006
2007
2008
- 45%
+14%+ 40%
+36%
Dynamics in the SA consumer market
- 45%
(-29%)+ 14%
(+ 6%)
+ 40%
(+ 26%)
+ 36%
(+ 28%)
Comparing 2001 to 2008Comparing 2001 to 2007Vermeulen,
2005
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20011995 1998
Household growth exceeds population growth
Year
+16% growth in population
8,3198,3198,47
8
8,478
9,5519,55110,143
Source: SAARF AMPS
10,50010,500
2005
26% IncreaseHouseholdNumbers
(2.18m HH)
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Meat consumption patterns
●Meat is a favourite and popular food in the diet
●However, the popularity of red meat is globally declining in favour of white meat and other non‑meat proteins
●SA Consumption (per capita)Red meat decreased and white meat increased
(Abstract of Agricultural Statistics, 2008)
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Meat consumption patterns
●Price difference contributes to this phenomenon
●Perceived health risk associated with the consumption of products considered to be high in total and saturated fat
●Detrimental effects on health such as increasing cholesterol levels and increasing health risk
●Concern about the link between high saturated animal fat intake and CVD as well as certain types of cancers
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Global consumption of meat (developed vs. developing countries) (Valin, 2000)
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Estimated total annual cash expenditure on major meat products per household per LSM group (2005)
0.00
500.00
1000.00
1500.00
2000.00
2500.00
3000.00
LSM1 LSM2 LSM3 LSM4 LSM5 LSM6 LSM7 LSM8 LSM9 LSM10
%
%
Beef Mutton/Lamb Pork PoultryVermeulen, 2005
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In South AfricaDecrease in the
consumption of animal fats
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The South African red meat consumer
Changes over time–Increasing living standards–Increase in household numbers, but decrease in people per household
–Increased prevalence of food trends>General trend towards white meat>Decreased intake of animal fats
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People buy meal solutions, not parts of dead animals
Reasons for food/meal choice:● “it’s a family favourite” } Indulgence
● “a treat/indulgence”
● “it’s good for you” } Health
● “I’m on a diet”
● “It’s quick to prepare/no hassle” } Convenience
● “easy to wash up”
● “Environmentally friendly” } Going green
● “Natural”
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International consumer food trends
These trends overlap:
Health
Convenience Ethics / environment
Indulgence /pleasure
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Consumer food trends
Trend 1: Health
Reflected in…• Natural• Functional promises (natural & ‘plus’ claims)• ‘Minus’ claims
Prominent dimensions:• General wellbeing• Dieting• Bioavailability • Specific health issues• Supplements
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Trend 2: Convenience
•Time-pressed consumers•Usually combined with health and/or indulgence
Reflected in …• Product innovation• Packaging innovation• Distribution innovation
Prominent dimensions:• Ready-meals• Fragmented eating • Children nutrition
Consumer food trends
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Trend 3: Indulgence
•Excitement, diversity, sophistication
Prominent dimensions:
• Product presentation• Taste, flavour• Culture foods• Ethnic foods
Reflected in …• Product & packaging• Labeling• Novel ingredients –wild and underutilized foods• Novel combinations• Texture• ‘Culture’ foods
Consumer food trends
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Trend 4: Going ‘green’
• Environmental sustainability• Social sustainability• Less important globally• For example:
OrganicFree rangeFair tradeFood miles Carbon footprintBiodiversity
Reflected in …• Local• Seasonal• Traditional• Credence values
Consumer food trends
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3
13
17
63
67
73
7
4
15
59
67
63
0 10 20 30 40 50 60 70
Environment
Culture
Fun / children
Health
Convenience
Indulgence
Share (%) of new food products reflecting specific trends (n=30/annum)
2007
2008
South African consumer trends(A new product perspective)
Global trends reflected in the local food market:
Vermeulen, 2005
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Encouraged change in all sectors – “from farm to plate”
Food Trends
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2. Encouraged change in all sectors - HEALTHHEALTH
●Image of meat as good for you (UK):
0
20
40
60
80
IMAGE - Good for youSampled on Main
Rolling 52 weekly data
j1792 x01l 112002 2003 2004 2005 2006 2007 2008 2009
PorkLamb
Beef
Chicken
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Image of red meat (UK): Too fatty
0
20
40
60
80
IMAGE - Are too fattySampled on Main
Rolling 52 weekly data
j1792 x01l 152002 2003 2004 2005 2006 2007 2008 2009
Bacon
Red meat
Pork
Lamb
Beef
Chicken
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Image of red meat (UK): Important as part of a healthy diet
0
20
40
60
80
100
IMAGE - Important in a healthy dietSampled on Main
Rolling 52 weekly data
j1792 x01l 162002 2003 2004 2005 2006 2007 2008 2009
Bacon
Red meat
PorkLamb
Beef
Chicken
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The image of red meat as “a healthy choice”
● Inline with food trend: HEALTH, need to change image of red meat as a “healthy choice as part of a balanced diet”
● In terms of the South Africa population:– Obesity:
>56.2% of the adult population overweight or obese (Demographic and Health Survey, 2003)
– Undernutrition>30.9 % preschool children stunted (Short for their age)
>50 % of children consume ≤ half the RDA for vit A, vit B2, B3, B6, folic acid, calcium, iron & zinc (NFCS, 1999)
>Poor Vit A status: 75% children & 25% women>Poor iron status: 16% children & 20% women> Inadequate zinc status: 45% of children
(NFCS, 2005)
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In terms of undernutrition: Red meat is a nutrient dense food
●Meat is an excellent source of protein containing all the essential amino acids
●Good source of many vitamins & mineralse.g. iron, zinc and the B-vitamins
●In leaner meat the nutrient content is higher, as fat dilutes the nutrients in the protein matrix
●With the high prevalence of nutritional deficiencies, the higher percentage of nutrients in lean red meat, increases the positive health image due to consumption
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Global decreases in fat content of meats observed over time
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Implication of reduction in fat content of red meat
The Heart Foundation and Cancer Foundation states that the fat content of food products consumed should be less than 10%
The implication: Many meats, according to
recent composition data, in fact lies within the recommended fat range
Due to breeding, slaughtering and preparation changes
SA lamb
SA beef – need for new data
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Encouraged change in all sectors - CONVENIENCECONVENIENCE
●Meat species is rarely the main driver of purchase (UK)
Which meat am I going to
buy?
What is the meal occasion?
(what’s my budget / how much time do I have)
Which cut?Which cut?
Which species?
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BETTER
GOOD
BEST
Basics
Had something done
Product is ‘Enhanced’
E.g. Boneless
E.g. Bone in Products
E.g. Marinated, Basted, Crusted, Extra Trim
ConvenienceConvenienceCurrent
SA industry
International +
encourages change in SA
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Vacuum SkinPackagingVacuum SkinPackaging
CAP-MAPPackagingCAP-MAPPackaging
Half or Full SleevePackagingHalf or Full SleevePackaging
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Encouraged change in all sectors - INDULGENCEINDULGENCE
Increased consumer trend towards:
●Sense of simplicity– Back-to-basics is becoming an indulgence– Natural ingredients– Clean label foods– More natural ingredients– Continue to cook at home
●Authenticity & region specific– Not just enough to regionally position, but also based
on ingredients from that region
●Increased trend for new and exotic flavors
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● Hand Made
● Raw added value
● Stuffed & or Marinades
● Extra Matured
Indulgence Indulgence
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Extra Tender lamb
Exclusive to Superquinn
The cuts undergo a revolutionary method of maturing which achieves an increased level of tenderness and flavour…………for those seeking that little bit more – extra tender, extra taste, extra special.
Evaluation carried out and concluded that day 10 optimum in terms of tenderness without adversely affecting product quality
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Encouraged change in all sectors - GOING GREENGOING GREEN
People are increasingly becoming nostalgic about simpler times & remain environmentally conscious
●Sustainable gather-systems– Locally sourced– More sustainable– Fairly traded– Carbon footprints
●“Free from”
●Naturally produced
●Hormone free – linked to health trend
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●Consumers are confused about who and what to believe regarding food choices IFIC Foundation, 2004
●Media – mixed messages
●General belief among consumers that: ●Red meat contributes towards obesity and other
lifestyle diseases●Red meats are hard to prepare & inconvenient●The red meat industry is not environmentally friendly
3. Opportunity to increase consumer 3. Opportunity to increase consumer knowledge and thus consumption knowledge and thus consumption
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I turned Vegan May 7, 2007! It wasn't difficult to give up animal products. Yes ~ that's all meat, milk, eggs, cheese, yogurt, ice cream, soup broths, etc.
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Increased need for industry involvement
Industry involvement:
●Decrease in fat percentage of red meat over time
●Limited change in terms of convenience, indulgence and “going green”
●Need for more directed marketing
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To Have a Product
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To Have a Story to tell
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To have a proper communication strategy
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Reach consumers in a way that is meaningful
to them
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Marketing of red meatIncreasing Consumer Preference
>Through successful communication strategies
>Increase perception of red meat in line with the main food trends HealthConvenience Indulgence “Going green” (naturally produced / hormone free etc.)
>Working with others in the supply chain to maintain and grow consumer demand
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Example: Presentation& PackagingExample: Presentation& Packaging
•Meets Legal Requirements•Attractive•Hygienic •Low Cost •Re Cycle•Simple & easy to Shop
Health
Going green
Indulgence
Convenience
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Photo Illustration
Product Name
GDA’s
Country of Origin
Freezable
Cooking Time
Retailer Branding
‘Only Contains’ Statement
Pack Price & Packers code
Staff StorageInstruction
Customer StorageInstruction
Customer Use byInstruction
E.G LabellingE.G LabellingHealthHealth
IndulgenceIndulgence
ConvenienceConvenience
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Challenges for the future
1. Sustaining production + supply – improving efficiency Need for international collaboration for R&D
2. Red meat production, the environment & climate change
3. Consumer Expectations Leaner & more healthy meat Need to focus on new customers and marketing segments (younger
generation & Muslim society)
4. Innovation is essential Need to capitalise on trends
Boneless products Products which fit convenience trends Moving away from traditional cuts to easy to prepare cuts with more enjoyment
and health
Need for education
Brussels, 2009
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1. Science
2. Opinion leaders
4. Health professionals
5. Consumers
Scie
nce
Driv
enBehaviour change
3. Industry
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Recommendations● Create a positive environment for international and local co-
operation
● Confront environmental issues – Research, development, changes & communication
● Highlight advantages of red meat consumption– Nutrition and health– Human satisfaction– Part of a modern, pleasant, convenient and mixed diet
● Differentiate, create and add value for growth in market
● Move to younger generation target market
● Reinvigorate domestic market – Rise in retail standards– R&D and communication of the findings – Specialized generic consumer marketing for behavior change
