Packaging gives new life to meat export markets
Technologies such as vacuum skin packaging and carbon monoxide modified atmosphere packaging can lengthen the window of opportunity for fresh meat exports to Southern and Eastern Europe, according to Clara van der Elst, analyst at Rabobank, the leading global agri-bank.
She said consumer preference for fresh over frozen has limited sales to within regional markets mostly, but this could now be changing.
The possibility is increasing for European meat producers to expand their target market and get better profit margins across the food chain, along with product premiumisation, and lower environmental costs of meat consumption.
“New packaging and processing technologies have major benefits for retailers, consumers and producers alike. For the retailer, less waste and fewer markdowns are conducive to lowering costs. Consumers benefit from a longer consumption period and fewer preservatives, in turn fulfilling demand for ‘natural’ foods, and producers benefit from increased market potential through an expanded geographical export range.”
Ms van der Elst said Rabobank expects significant opportunities in China for European processed meat, once import restrictions are reduced.
In China, there is a preference for non-locally produced meat. This is driven by domestic quality issues, and local meat production is also failing to keep up with demand.
“In addition, European meat is able to compete on price with locally produced.”
Packaged chilled meat and ready-to-eat meat has seen the fastest growth in China, of an estimated rate of 20%per year.
“A ripe market, therefore, exists for imports and demand in value-added meat.”
She said meat companies in Northwest Europe are at a point to reconsider strategic investments once again, and the winners will be those that adopt early investment into new packaging and processing technologies, while driving consumer premiumisation in mature retail markets.
