Irish Poultry & Egg Industry Situation

Peter Duggan 15th July 2020

Agenda

QA Members SPPAS Production Global Trends Promotional Activities Consumer Behaviour

Sustainable Poultry Products Assurance

Scheme Rev01 November 2019

This replaces the current Poultry

Products Quality Assurance Scheme (PPQAS)

SPPAS will launch as soon as the COVID-19

/ Avian Influenza situation allows

training and on-site audits to resume.

Scope includes breeder farms (rearing &

laying), hatcheries and for poultry producers

across the chicken, turkey and duck

sectors.

SPPAS Objectives

• To demonstrate to customers that poultry meat is produced under an accredited sustainability & quality assurance scheme; • To set out the criteria for best practice at all stages in the poultry production process. • To provide a uniform mechanism for recording and monitoring:

1. Compliance of participants with quality assurance, food hygiene and food safety criteria;

2. The level of sustainability improvement over time

Benefits from Participation in the SPPAS

On Farm Benefits • Quality & sustainability measures can deliver

environmental & economic benefits. • Allows members to meet both regulatory and market

demands.

Industry Benefits • Effectively communicates the marketing credentials

with key customers. • Create a market preference for certified produce among

customers.

What's New? • Producers must engage in a Campylobacter Improvement Plan

with their abattoir (in line with FSAI Recommendations for a

Practical Control Programme for Campylobacter in the Poultry

Production and Slaughter Chain) (2011).

• Highest Priority Critically Important Antimicrobials (HP-CIAs)

products and usage methods set out by DAFM recommendations.

• Develop Animal Welfare Plan & implement in consultation with

Veterinary Practitioner and review annually.

• Sustainability data gathering (e.g. energy, feed, etc.) to determine

Carbon Footprint of each production house.

• Staff ‘Welfare in the Workplace’ policy

• Rodent Control Plan in line with Campaign for Responsible

Rodenticide Use Code (CRRU)

• Chemical handling – producers must be registered with

DAFM as a Professional User (PU)

• Biosecurity Protocols – House entry / exit procedures

• Litter must be sourced from an approved supplier.

• ‘Catching’ protocols

What's New?

Production

Irish poultry supplies EU supplies Chinese situation Global export developments Irish layer situation

Irish poultry supplies continue to hit record levels

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2018

2019

2020

Million head Irish poultry supplies 3% higher at 55m birds ytd

13

Changing Chinese Chicken Industry Dynamic

0

100

200

300

400

500

600

700

800

900

1000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2015 2016 2017 2018 2019 (f) 2020 (e)

Production

Imports

‘000 Tonnes

Source: USDA/FAS/Jul 20

‘000 Tonnes (Imports)

Chicken exports by key region, 000 tonnes

15

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Brazil US EU Thailand

2017

2018

2019

2020

Evolution of Irish layers, ‘000 head

16

2,776 2,827 2,916

3,268 3,381

3,470 3,601

3,700

1,500

2,000

2,500

3,000

3,500

4,000

2012 2013 2014 2015 2016 2017 2018 2019 (F)

Promotional Activities

Domestic chicken & egg campaign Global initiatives

Bord Bia Chicken Campaign

18

19

COVID-19 Influencing Strong Poultry Retail Demand

20

12 week period ending 14th June v’s 2019

Bord Bia Egg Campaign

21

22

23

24

25

143,792 151,348

32,378

43,482

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

52 w/e 16 Jun 19 52 w/e 14 Jun 20 12 w/e 16 Jun 19 12 w/e 14 Jun 20

Hens Eggs – Value Sales YoY, €’000

+5%

+26%

UAE B2C Egg Campaign

COVID-19 led to uncertainty & volatility

28

Significant disruption to trade, production and consumption

Poultry Purchase Behaviour Since Covid Restrictions

June 2020

Frequency of Purchasing Each Type of Protein

30

(Base: All grocery shoppers)

How often, if at all, do you purchase each of the following types of meats, either for yourself or someone else in your household?

The growth in the weekly or more often purchase of chicken is evident across all demographics, with the exception of those aged 18-34. The older cohort has particularly bought chicken more frequently since March.

Significant difference @ 95% confidence level

71% 70% 71% 68% 76%

66%

12% 13% 10% 13% 13%

6%

77% 77% 77% 69% 81%

76%

7% 7% 7% 11% 7% 5%

Total Male Female 18-34 35-54 55+

Chicken Jan – Feb ‘20

Chicken Mar - Jun ‘20

Turkey Jan – Feb ‘20

Turkey Mar - Jun ‘20

Jan-Feb ‘20

Mar- Jun ‘20

N=750 N=1,500

Once a week or more often

Key Reasons for Purchasing Chicken (Base: All grocery shoppers who purchased each type of protein for a main evening meal on the last occasion)

Beef Chicken Pork 40% 32%

28%

25%

25%

25%

24%

18%

16%

16%

14%

33%

32%

25%

26%

21%

29%

28%

20%

16%

16%

11%

Habit is the key motivation for chicken purchase. Consumers are tending to stick to their familiar favourite foods since Covid-19. Other key drivers are the ease of preparation. price, provenance and health concerns are further down the list.

Thinking about when you bought chicken on the last occasion, which of the following were reasons why you decided to purchase it?

It's the one I always buy

Ease of preparing/cooking the protein

The size or number of servings

It's good for my health

That the protein is local/from this country

The price of the protein

Special offers/promotions

It's a high quality protein

Quality assurance certification on pack

Level of fat content in the protein

Traceability of protein back to farm

15%

5%

6%

6%

5%

3%

2%

3%

3%

1%

0%

15%

4%

4%

8%

4%

6%

4%

3%

4%

3%

2%

Nutritional content of the protein

Environmental factors

Ethical consideration

That it's organic

That the protein is GM free

How dark or light the meat is

Environmentally packaging for the protein

It looked like an interesting product

Packaging - attractive packaging with information

Wanting to try something new

It was a treat/special occasion

Jan-Feb ’20 (n=488) Mar- Jun ’20 (n=1,065)

Key Covid Behaviour Changes

Stocking up on essential food

and drink

Choosing local

grocery brands

Grocery shopping

online

(Base: All Irish adults, n= 1,015)

Cooking from

scratch

Cooking from

scratch

Choosing familiar

favourite foods

Eating for improved immunity

41% Doing this

more

29% Doing this

more

32% Doing this

more

27% Doing this

more

27% Expect to do this more in the future

61% Expect to do this more in the future

71% Expect to do this more in the future

32% Expect to do this more in the future

Covid Indicator = “Stocking In”

Covid Indicator = “Mood Food”

Covid Indicator =“Shielding”

Covid Indicator = “Comfort Cooking”

Summary BB scheme & member update

Promotional activity update

Global production trending upwards

Changing Consumer Behaviour

Irish Poultry & Egg Industry Situation

Peter Duggan 15th July 2020

Irish Poultry & Egg Industry SituationAgendaSlide Number 3Slide Number 4Sustainable Poultry Products Assurance Scheme Rev01 �November 2019�Slide Number 6�SPPAS Objectives �Slide Number 8What's New?What's New?ProductionIrish poultry supplies continue to hit record levelsSlide Number 13Changing Chinese Chicken Industry DynamicChicken exports by key region, 000 tonnesEvolution of Irish layers, ‘000 headPromotional ActivitiesBord Bia Chicken Campaign Slide Number 19COVID-19 Influencing Strong Poultry Retail Demand Bord Bia Egg CampaignSlide Number 22Slide Number 23Slide Number 24Slide Number 25Slide Number 26UAE B2C Egg CampaignCOVID-19 led to uncertainty & volatilityPoultry Purchase Behaviour Since Covid RestrictionsFrequency of Purchasing Each Type of ProteinKey Reasons for Purchasing ChickenKey Covid Behaviour ChangesSummaryIrish Poultry & Egg Industry Situation