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October 22, 2019
Joel HaggardSenior Vice President Asia Pacific [email protected]
Asian Meat Market Trends: a U.S. Perspective
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The Big Drivers - Aging populations – youth as principal
demand drivers; also labour shortages- “Healthier” eating – encompasses nutrition
attributes, but also sustainable, ‘natural’, ‘local’, growing animal welfare awareness
- Cuisine experimentation – more menu choices, more competition for red meat
- “New Retail” – purchasing anything, anywhere, anytime
- Convenience – shorter meal prep times; meals on the go & alone
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Traditions persist- Penchant for fresh – wet markets still thrive, esp
in Greater China region, and regardless of income; frozen & chilled discounted (outside of Japan & Korea)
- Price sensitivity – esp for daily proteins, but also for e-commerce
- Wet cooking over dry cooking – ovens still not ubiquitous, except microwaves
- Fast food, but local flavours- Traditional meat products – mince market
undeveloped
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Black Swans: ASF to reshape Asian meat consumption: “Its better to eat less pork”
Korea’s Per Capita Meat Consumption
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Competitiveness is about cuts- clod hearts- top butts- ball Tips- trip-tips- chuck Tender- flank- brisket- sirloin Flap- eye of round
- chuck eye roll- striploin- heel muscle- bone-in short
rib- culottes- inside skirts- outsides skirts- hanging
Tenders
- knuckles- inside
rounds- outside
rounds
U.S. More Competitive U.S. Less Competitive
- short plate- TBM- short rib
b/less- ribeye- tenderloin- chuck roll- finger meat
Chilled vs. frozen: Choice vs
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Especially for pork- bone in middles(EU);
- spare ribs- hocks;- kidneys (Canada);
- bls butts (Brazil);
- loin complex (Brazil);
- hearts (EU)
- bellies (EU)
U.S. More Competitive U.S. Less Competitive
- bls picnics;- bone-in shoulders;
- bls hams;- bone-in hams;- tongues; - ears;- front/hind feet;- stomachs;- neckbones;- carcasses
Japan:A special
case
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Most U.S. volume is narrow range of cuts
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Buyers are knowledgeable
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Consumer interest in “the best” in beef, lamb, and pork; but faddish
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Most products move at lowerprices (value stratification of PRC beef imports)
Grass-fed
Grain-fed
Minced meat etc..
494,947 tons
601,401 tons5,342 tons
14,484 tons
Grain-fedSteak/roasts
Non-marinated table meat
Marinated table meat
Stewing meat
Processing/ grinding/dumplings
95%
96.6%
C & F Unit Import Values
>$4.50/lb.
$3.18 - $4.50
$2.27 - $3.18
$1.36 - $2.27
Under $1.36
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Typical fast moving meat items;Dah Chong Hong Food Mart: HK
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Marination + market access = numerous chef choices
(wholesale prices per kg.)USDA PRIME ribeye: RMB 240-350 Australian long-fed F1 Wagyu-Angus cross ribeye: RMB 280 Australian grain-fed ribeye (trimmed): RMB 195 US CAB ribeye: RMB 180 Canadian AA ribeye: RMB 158 New Zealand ribeye (yearling; non-marinated): RMB 145 Canadian AAA striploin: RMB 125 Canadian AA striploin: RMB 115 US CAB chuck eye steak: RMB 100-110 Canadian BI short ribs: RMB 100 Australian grain-fed top blade: RMB 95 New Zealand striploin (yearling; non-marinated): RMB 95 USDA CHOICE tri tip: RMB 95 USDA CHOICE chuck roll: RMB 90 Australian grass fed cube roll (ribeye): RMB 82 Uruguay top blade steak, grass fed: RMB 80 Argentina grass fed ribeye: RMB 75 Australian grass fed striploin: RMB 75 NZ grass fed ribeye: RMB 75 Uruguay grass fed ribeye: RMB 75 USDA CHOICE clod heart steak: RMB 75 Argentina grass fed striploin: RMB 65 Canadian grain fed chuck roll: RMB 65 New Zealand striploin: RMB 65 Brazilian cube roll (ribeye): RMB 62
Minced beef market small
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Hot pot & BBQ driving regional demand for grain-fed beef
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Asian “Niku boom”; meat portions are getting bigger; more meat concept restarurants
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The way people are eating out is changing
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Retail: neighbourhood stores & wet markets thrive“we don’t sell yesterday’s meat”
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Online beef sales flourishing but from small base
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Beef merchandising still needs work, but improving
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Higher labour costs means more portion control & skin packs ….and convenience
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Can traditional wholesaling move online? (Korea: CJ Freshway’s Meat Friends)
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Questions?HK: world’s most competitive meat markets
Brazil, $2,365
United States, $1,836
China, $958
Australia, $233
Germany, $192
Canada, $162
Poland, $160
Netherlands, $145
United Kingdom, $144
Spain, $134Argentina, $124
New Zealand, $78Thailand, $76 Ireland, $71
Japan, $69 France, $57
Italy, $55
Mexico, $46
Uruguay, $39Vietnam, $38
Russia, $36
Denmark, $35Belgium, $33
Hungary, $21Turkey, $21
Ukraine, $15
Malaysia, $13
Chile, $13
Paraguay, $11
Korea South, $10Others, $53
Brazil United States ChinaAustralia Germany CanadaPoland Netherlands United KingdomSpain Argentina New ZealandThailand Ireland JapanFrance Italy MexicoUruguay Vietnam RussiaDenmark Belgium HungaryTurkey Ukraine MalaysiaChile Paraguay Korea SouthOthers
Hong Kong: total meat & poultry importsJan - Dec 2018 (US$ in million)