Prof Hettie Schönfeldt School of Natural and Agricultural Sciences

1. You and your red meat consumer Prof Hettie Schönfeldt School of Natural and Agricultural Sciences

2. Current Issues • Little & declining knowledge of the positive role of red meat in nutrition and health • Environmental impact of the industry • Convenience, indulgence, traditional product • Value for money Identified problems: • Lack of education & communication along the red meat chain • Negative influence of media (nutrition, health & environment) Brussels, 2009

3. Current Issues Increased globalization of the red meat industry & New food trends are observed Provides a challenge to red meat industry: • Increased possibility of international collaboration & alignment • Encourages change in all sectors – “from farm to plate” • Opportunity to increase consumer knowledge and thus consumption Brussels, 2009

4. 1. Increased possibility of international collaboration & alignment • Globalization gained importance due to market liberalization & technology • Severe consequences for market structures & strategies • From agriculture & food processing to food retail & service • Increased market concentration & density • worldwide consumer preference – increase in large food companies • regional differentiation – increase in specialist products • Meat consumption continually increasing • Increased impact on import / export + production • The global system emphasizes: • Grain-fed cattle in feedlots • Special breeds that can graze more marginal & fragile habitats • Use of growth hormones and antibiotics • Environmental and social impact • Government subsidies & policy • International alignment in standards & policy

5. World Meat Production Source: FAO

6. Major Meat Producers 2002 Beef Pork Poultry Ovine Source: USDA

7. World Meat Trade Source: FAO

8. The Impact of Trade Liberalization (1,000 MT) U.S. Beef Exports 1970-2000 China PNTR (00) Uruguay Round (95) Canadian Free Trade Agreement (89) Japan Beef-Citrus Agreement (88) Tokyo Round (78) Korea Beef Agreement (93) North American Free Trade Agreement (94) Japan SPS Agreement (84)

9. World Trade in Meat as a Percent of Production Source: FAO

10. Summary: Increased possibility of international collaboration & alignment • The world market for meat products is growing • Exporters have cooperated in opening markets for half a century • Producers, exporters, importers and other role players should continue to cooperate in non-traditional ways to “raise all ships” US Meat Export Federation

11. 2. Encouraged change in all sectors – “from farm to plate” Consumers of today: • Curious: searching authentic experiences more than products • Realists: (very) careful to the quality/price relation of the acquired product/service • Social: interested in relationships and situations that create “community” • And then,…… informed (very),…… autonomous (they feel like deciding),…….. ethical….

12. The South African consumer • Population of 46 million people of which 79% are black Africans • Classified according to LSM (Living standards measure) groups: • A marketing research tool to gain better understanding of the socio-economic status of individual / group • SA is segmented into 10 LSM groups (10 being the highest standard and 1 the lowest) • People are segmented according to their standard of living • E.g. degree of urbanization, ownership of cars and major appliances etc as variables

14. The South African consumer market:LSM classification(Source: SAARF, 2004) 35 % of LSM 6 to 10 are black

15. The SU-LSM segments: Proportion of SA population and average monthly income(SAARF, 2005)

16. Dynamics in the SA consumer market - 45% (-29%) + 14% (+ 6%) + 40% (+ 26%) + 36% (+ 28%) Comparing 2001 to 2008 Comparing 2001 to 2007 Vermeulen, 2005

17. Household growth exceeds population growth +16% growth in population 10,500 10,143 9,551 26% Increase Household Numbers (2.18m HH) 8,478 8,319 Year 2005 1995 1998 2001 Source: SAARF AMPS

18. Meat consumption patterns • Meat is a favourite and popular food in the diet • However, the popularity of red meat is globally declining in favour of white meat and other non‑meat proteins • SA Consumption (per capita) Red meat decreased and white meat increased (Abstract of Agricultural Statistics, 2008)

19. Meat consumption patterns • Price difference contributes to this phenomenon • Perceived health risk associated with the consumption of products considered to be high in total and saturated fat • Detrimental effects on health such as increasing cholesterol levels and increasing health risk • Concern about the link between high saturated animal fat intake and CVD as well as certain types of cancers

20. Global consumption of meat (developed vs. developing countries) (Valin, 2000)

21. Estimated total annual cash expenditure on major meat products per household per LSM group (2005) Vermeulen, 2005

22. In South Africa Decrease in the consumption of animal fats

23. The South African red meat consumer Changes over time • Increasing living standards • Increase in household numbers, but decrease in people per household • Increased prevalence of food trends • General trend towards white meat • Decreased intake of animal fats

24. People buy meal solutions, not parts of dead animals Reasons for food/meal choice: • “it’s a family favourite” } Indulgence • “a treat/indulgence” • “it’s good for you” } Health • “I’m on a diet” • “It’s quick to prepare/no hassle” } Convenience • “easy to wash up” • “Environmentally friendly” } Going green • “Natural”

25. International consumer food trends These trends overlap: Indulgence / pleasure Health Ethics / environment Convenience

26. Consumer food trends Trend 1: Health • Prominent dimensions: • General wellbeing • Dieting • Bioavailability • Specific health issues • Supplements • Reflected in… • Natural • Functional promises • (natural & ‘plus’ claims) • ‘Minus’ claims

27. Consumer food trends Trend 2: Convenience • Time-pressed consumers • Usually combined with health and/or indulgence • Prominent dimensions: • Ready-meals • Fragmented eating • Children nutrition • Reflected in … • Product innovation • Packaging innovation • Distribution innovation

28. Consumer food trends Trend 3: Indulgence • Excitement, diversity, sophistication • Prominent dimensions: • Product presentation • Taste, flavour • Culture foods • Ethnic foods • Reflected in … • Product & packaging • Labeling • Novel ingredients –wild and underutilized foods • Novel combinations • Texture • ‘Culture’ foods

29. Consumer food trends Trend 4: Going ‘green’ • Environmental sustainability • Social sustainability • Less important globally • For example: • Organic • Free range • Fair trade • Food miles • Carbon footprint • Biodiversity • Reflected in … • Local • Seasonal • Traditional • Credence values

30. South African consumer trends(A new product perspective) Global trends reflected in the local food market: Vermeulen, 2005

31. Food Trends Encouraged change in all sectors – “from farm to plate” Whatchange?

32. 2. Encouraged change in all sectors - HEALTH • Image of meat as good for you (UK):

33. Image of red meat (UK): Too fatty

34. Image of red meat (UK): Important as part of a healthy diet

35. The image of red meat as “a healthy choice” • Inline with food trend: HEALTH, need to change image of red meat as a “healthy choice as part of a balanced diet” • In terms of the South Africa population: • Obesity: • 56.2% of the adult population overweight or obese (Demographic and Health Survey, 2003) • Undernutrition • 30.9 % preschool children stunted (Short for their age) • 50 % of children consume ≤ half the RDA for vit A, vit B2, B3, B6, folic acid, calcium, iron & zinc (NFCS, 1999) • Poor Vit A status: 75% children & 25% women • Poor iron status: 16% children & 20% women • Inadequate zinc status: 45% of children (NFCS, 2005)

36. In terms of undernutrition: Red meat is a nutrient dense food • Meat is an excellent source of protein containing all the essential amino acids • Good source of many vitamins & minerals e.g. iron, zinc and the B-vitamins • In leaner meat the nutrient content is higher, as fat dilutes the nutrients in the protein matrix • With the high prevalence of nutritional deficiencies, the higher percentage of nutrients in lean red meat, increases the positive health image due to consumption

37. Global decreases in fat content of meats observed over time

38. Implication of reduction in fat content of red meat SA beef – need for new data The Heart Foundation and Cancer Foundation states that the fat content of food products consumed should be less than 10% The implication: Many meats, according to recent composition data, in fact lies within the recommended fat range Due to breeding, slaughtering and preparation changes SA lamb

39. Encouraged change in all sectors - CONVENIENCE • Meat species is rarely the main driver of purchase (UK) What is the meal occasion? (what’s my budget / how much time do I have) Which meat am I going to buy? Which cut? Which cut? Which species?  

40. Current SA industry Convenience GOOD E.g. Bone in Products Basics BETTER Had something done E.g. Boneless BEST Product is ‘Enhanced’ E.g. Marinated, Basted, Crusted, Extra Trim International + encourages change in SA

41. Vacuum Skin Packaging CAP-MAP Packaging Half or Full Sleeve Packaging

42. Encouraged change in all sectors - INDULGENCE Increased consumer trend towards: • Sense of simplicity • Back-to-basics is becoming an indulgence • Natural ingredients • Clean label foods • More natural ingredients • Continue to cook at home • Authenticity & region specific • Not just enough to regionally position, but also based on ingredients from that region • Increased trend for new and exotic flavors

43. Indulgence • Hand Made • Raw added value • Stuffed & or Marinades • Extra Matured

44. Extra Tender lamb Exclusive to Superquinn The cuts undergo a revolutionary method of maturing which achieves an increased level of tenderness and flavour…………for those seeking that little bit more – extra tender, extra taste, extra special. Evaluation carried out and concluded that day 10 optimum in terms of tenderness without adversely affecting product quality

45. Encouraged change in all sectors - GOING GREEN People are increasingly becoming nostalgic about simpler times & remain environmentally conscious • Sustainable gather-systems • Locally sourced • More sustainable • Fairly traded • Carbon footprints • “Free from” • Naturally produced • Hormone free – linked to health trend

46. 3. Opportunity to increase consumer knowledge and thus consumption • Consumers are confused about who and whatto believe regarding food choices IFIC Foundation, 2004 • Media – mixed messages • General belief among consumers that: • Red meat contributes towards obesity and other lifestyle diseases • Red meats are hard to prepare & inconvenient • The red meat industry is not environmentally friendly

47.  I turned Vegan May 7, 2007! It wasn't difficult to give up animal products. Yes ~ that's all meat, milk, eggs, cheese, yogurt, ice cream, soup broths, etc.

48. Increased need for industry involvement Industry involvement: • Decrease in fat percentage of red meat over time • Limited change in terms of convenience, indulgence and “going green” • Need for more directed marketing

50. To Have a Product South African Red Meat