The challenges for the European Meat Food Industry during the next decade

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The challenges for the European Meat / Food
Industry during the next decade

• Siem Korver
• Presented at Food Economy Conference
• September 2007, Scheveningen, The Netherlands

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Presentation outline

• Introduction VION Food Group
• Major changes with large impact on European food
  / meat industry
• Key food market drivers
• Global food market with local marketplace
• Summary

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Major changes with large impact on European food
/ meat industry

• Globalisation of the meat / food business
• Growth and change (consumer demands) in protein
  consumption
• Consolidation in the food chain

4
Driving forces behind the globalisation of the
food / meat business

• Liberalisation of world trade (e.g. WTO)
• Further reform EU Common Agricultural Policy
• Shift from import duties to other governmental
  thresholds

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Growth in meat consumption linked to three
drivers population density, growing standard of
living and urbanisation
Russia
India
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Evolution food consumption (I)
Source Rabobank, 2004
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Evolution food consumption (II)(source Rabo-bank)
Growing markets
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Key food market drivers
Retail and Food service
Consumer trends/ Society demands
global food market
Economics (e.g. scale)
Demographics
Government, institutional policies
Innovation Technology
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• However,
• what is the market?

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Global food market with a local marketplace -
observations(I)

• International trade is still limited as a
  percentage of total production / consumption
• Distinction between fresh and processed products
• Diversity of society values, culture, food
  habits, etc.

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Global food market with local marketplace -
observations(II)

• No (full) harmonization of food safety standards,
  food legislation and nutritional criteria
• No harmonization on social and environment
  standards
• Importance of non-trade tariff barriers

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Strategies Fresh meat versus industry products

• Fresh Products
• Consumers / retailers / food-service
• Distribution and logistics
• Regional suppliers
• Options for regional specifications
• Economy of scale
• Focus on new products
• Local marketplace

• Industry products
• Industrial customers
• Raw material
• World-wide suppliers
• Economy of scale
• Importance of new preservation techniques
• Global marketplace

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Act local and Manage global - summary
Retail and Food service
Local business environment (incl. society needs)
Combination Local and global
Increase in global trade
Local market knowledge
Government, institutional policies
Innovation Technology
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Conclusion

• The food business in the coming decade
• will act local because of consumers
• will be managed global given the combination of
  local and global sourcing.

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• Thank you for your attention!