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European pork industry: competitive power and market position are pivotal to success

According to Rabobank, the EU pork industry will see few opportunities for margin improvement in the coming years.

Monday 5 October 2015 (2 years 7 months 20 days ago)

The Dutch-based Rabobank latest pig sector report (The EU Pork Industry; Competitive Power Is Key), points out that EU pork consumption had declined from 2007 to 2014, in this dynamic European pork industry, competitive power and market position are pivotal to success.

“The recent decline in pork consumption was triggered by two developments: higher pork prices due to feed cost increases and trading down to cheaper proteins due to the economic crisis,” says Rabobank Animal Protein Analyst Albert Vernooij. These developments had collided with three longer-term trends:

  • consumer preference for convenience and processed meat products containing less meat,
  • increase in meat-restricted diets for environmental, ethical, animal welfare and health reasons, and,
  • various meat scandals in the EU.

According to Rabobank, the EU pork industry will see few opportunities for margin improvement in the coming years, EU pork processors must make a strategic decision regarding their positioning. This decision should be based on the current company status and the five key success factors of EU pork processors:

  • cost competitiveness,
  • sourcing,
  • efficiency,
  • market approach and
  • client access.

Friday October 2, 2015/ Rabobank.
http://rabobank-food-agribusiness-research.pr.co

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