B RITISH P OULTRY C OUNCIL The Voice of the British Poultry Meat Sector John Reed – Chairman April...
-
Upload
santos-howery -
Category
Documents
-
view
214 -
download
0
Transcript of B RITISH P OULTRY C OUNCIL The Voice of the British Poultry Meat Sector John Reed – Chairman April...
BRITISH POULTRY COUNCILThe Voice of the British Poultry Meat
Sector
John Reed – ChairmanApril 23, 2013
ABOUT BPC
Voluntary trade association representing British poultry companies and 90% of the British poultry meat industry
Chickens, turkeys, ducks and geese
Member of AVEC (Europe) and IPC (global)
Covers the entire poultry meat chain – primary breeding, hatching, rearing, slaughtering, primary and further processing
Works closely with associated trade bodies (NFU, BEIC, Red Tractor, BRC…)
BPC MEMBERS
SPECIES (MILLIONS OF BIRDS/YEAR)
BPC (2012)
CHICK PLACEMENTS (MILLIONS)
DEFRA (2013)
POULTRYMEAT CONSUMPTION
BPC (2013)
CONSUMPTION IN THE UK (TONNES/YEAR)
DEFRA (2011)
LEADING BROILERS PRODUCERS IN EUROPE
MARKET OVERVIEW
Source: Kantar Worldpanel, 12w/e 17th February 2013
Aldi
Lidl
Iceland
Waitrose
Other Multiples
Sainsbury's
Symbols & Independents
Total Grocers
Total Asda
Tesco
The Co-operative
Morrisons
-5 0 5 10 15 20 25 30 35
3.7
THE MACRO ENVIRONMENT Total Grocery 12 w/e YoY% Change
The Squeezed Middle
Less disposable income & increased pressure from the rising cost of living
This has resulted in a marked change in shopper behaviour which looks set to stay- the rise of
the Discounters and the squeezed middle is just one impact
Consumers are clearly managing the impact of inflation by maintaining tighter control over
their budgets, seeking out the best deals and selective down trading- by either visiting cheaper
supermarkets or buying cheaper products. i.e. private label instead of branded.
Shoppers reduce the size of their main weekly shop and visit the supermarket more frequently
throughout the week, smaller top up shops, reducing waste and allowing for tighter control
over their budgets.
This has had a knock on effect on promotional mechanics- Price reduction is now favoured
over Y for £X and multibuy deals
Beef£6.68 / kg
Pork£5.08 / kg
Lamb£8.67 / kg
Chicken£4.22 / kg
Source: Kantar Worldpanel, 52w/e 17th February 2013
In the same way that savvy shoppers have been trading down into cheaper supermarkets and less expensive products we have also seen switching into chicken from other proteins. This is as a result of both price and perceived health benefits.
HOW HAS THIS IMPACTED FRESH CHICKEN?
£7.69
£7.09
£4.97
£10.46
£5.18
£11.72
£0.00 £2.00 £4.00 £6.00 £8.00 £10.00 £12.00 £14.00
Fresh Chicken Breast Fillets Ave RSP
Fresh Turkey Breast Fillets Ave RSP
Fresh Minced Beef Ave RSP
Fresh Lamb Chops Ave RSP
Fresh Pork Chops Ave RSP
Fresh Salmon Fillets Ave RSP
As the most popular cut of chicken, breast meat is expensive when compared to other popular cuts of protein
HOWEVER WHILST CHICKEN IS CHEAPEST OVERALL…
As a result we have seen a shift in the interaction between tiers and individual cuts within Fresh Primary Chicken.
Consumers have been switching spend from Organic and Free Range chicken into Standard and Value.
Source: Kantar Worldpanel, 52w/e 17th February 2013
Whilst breast meat sales remain strong there is a clear decline in penetration as shoppers switch into dark meat (+9.8% Value YoY) in favour of its lower price. Whole Birds are also popular for their lower £/Kg, leftovers can also be used to produce second meals or sandwiches.
The rise of the Discounters has also been very evident in Fresh Chicken and they have been stealing spend from the Top 4….
Fresh Primary Chicken YoY% ChangeSource: Kantar Worldpanel, 12w/e 17th February 2013
The retailers have placed real emphasis on their quality credentials whilst maintaining low prices. They also generally opt for TPR mechanics over Y for £X and multibuy.
Expect to see increased switching from Red Meat into Chicken- particularly whole muscle
No evidence to suggest that there has been any impact on individual retailers but will consumers become less trusting of those involved?
In the 12 weeks ending 17th February 2013 there was a 43% value reduction in frozen burger sales and a 13% value decline in frozen ready meals
Increase in the number of shoppers visiting butchers to purchase their fresh meat- It is likely that the scandal may impact value tiered products with consumers becoming unsure about the quality and source.
Tesco’s Value Fresh Chicken lines have decreased in value by 11% in the last 4 weeks YoY (w/e 17th February 2013)
The NFU has launched a ‘Buy British’ campaign encouraging shoppers to look out for the Red Tractor logo
Tesco have also announced that from July they will be sourcing all of their Fresh Chicken from British farms- as part of this they will also be committing to a 2 year contract with their producers.
WHAT IMPACT WILL THE HORSE MEAT SCANDAL HAVE ON FRESH CHICKEN?
INDUSTRY ADVANTAGE
Vertically integrated
Short supply chain
Concentrated into a few large companies
High level of control throughout the chain
Customer driven – no UK or EU subsidies
Small carbon footprint
INDUSTRY PRIORITIES
INDUSTRY PRIORITIES
Animal health
Environment
Animal welfare
Food safety
Human health & safety
Affordability
Recruitment
Profitability
Food security
Sustainable intensification
FOOD SAFETY AND HYGIENE
Campylobacter∞ Leader of Joint Working Group with the FSA, NFU, BRC and
Defra∞ Scientific research, biosecurity measures, on-going trials
at farm and plant level
Meat inspection regime∞ Joint work with the FSA to replace visual inspections by
microbiological testing
RESPONSIBLE ANIMAL HUSBANDRY
Antibiotic stewardship∞ Continuous review of usage in poultry flocks∞ Voluntary ban on the use of cephalosporins in poultry
production
Welfare at slaughter∞ Implementation of the EU legislation on the Protection of
Animals at the Time of Killing
UK Poultry Health & Welfare Group∞ BPC, BEIC, GFA, NFU, BVPA
CAREERS & SKILLS
Goals- Attract, recruit, train, develop and retain quality people for the
sector -- Demonstrate professionalism and skills -
∞ Annual scholarships in partnership with Harper Adams College
∞ Poultry apprenticeship
∞ British Poultry Training Programme / Poultry Passport
∞ Awareness & education program in schools
ECONOMIC & SOCIAL CONTRIBUTION 35,000 direct employees + 35,000 indirect
employees
2,500+ farms and 30 food production sites across the UK
Contribution to the economy: ∞ farmgate value £2.25bn ∞ retailer level £4.5bn∞ food service sector £2.5bn
On-going work to facilitate exports of breeding stock & poultry meat
SUSTAINABLE FOOD SECURITY
Responsible sourcing of feed ingredients such as soy or wheat
Environment-friendly policies and standards
Large scale farming to meet the demands of a growing population
THANK YOU FOR YOUR ATTENTION