Dear readers,

Some positive news for our industry:

• The Brazilian Association of Animal Protein (ABPA) launched a an information campaign that highlights the benefits of eating pig and poultry meat, and eggs. The  “Sabor e Saude para Sua Familia” (Flavor and health for your family)campaign details the health benefits derived from consuming the three proteins, in particular those of strengthening the immune system, and the ease of preparation.
• The H5N1 influenza virus has been determined in a single backyard pig in Oregon. The Swine Health Information Center (SHIC) has partnered with the Foundation for Food & Agriculture Research (FFAR) and the Pork Checkoff to fund a US$4 million research program to enhance prevention, preparedness, mitigation and response capabilities for H5N1 influenza in the United States swine herd.

Events calendar:

• The Coex Food Week in Seoul has established itself as one of the most significant trade fairs for the food and beverage industry in South Korea. Held at the COEX Convention and Exhibition Center in Seoul, the Food Week will take place on 4 days from Wednesday, 20. November to Saturday, 23. November 2024.
• The Good Food Show is a semi-annual food and cooking fair held at the NEC National Exhibition Center in Birmingham, England. Organized by Haymarket Exhibitions Limited, the Good Food Show will take place on 4 days from Thursday, 21. November to Sunday, 24. November 2024.
• UzProdExpo is a significant international trade fair for the food and beverage industry in Tashkent, Uzbekistan. The exhibition attracts exhibitors and trade visitors from various sectors of the food industry. UzProdExpo will take place on 3 days from Wednesday, 20. November to Friday, 22. November 2024.

The Robots

Undoubtfully, this year’s most important event of our industry has been held last week: the EuroTier exhibition in Hannover, Germany. According to the organizers, the fair hosted 2193 exhibitors from 51 countries and has been attended by more than 120.000 visitors. I will post below my impression of the fair, but before that let’s take a look at other developments of the pig industry in the region.

I had the chance to meet some of the many Dutch pig farmers visiting the fair and exchange opinions on the latest evolutions affecting pig farming. According to the latest information, the pig population will fall sharply in the Netherlands, by  10 to 15%. The main reason for this is the state purchase program as part of The Hague environmental policy, which is said to allocate another 5 billion € for the farm buyout programme. The Dutch sow population has already shrunk by 6.3% between December 2023 and June 2024, among other reasons. It is no wonder that Vion’s new strategy is based on the assumption that animal numbers are decreasing. Tjarda Klimp, who will succeed Ronald Lotgerink as CEO on 1 January, stated in the Financieel Dagblad. „We will soon be a much less complex company, with eight locations instead of 24. With fewer locations, you can more easily work on sustainability and profitability at the same time. We have to ensure that sustainability and cost levels fit together.” Vion Food Group’s equity fell from almost 500 million to around 280 million euros in four years. In 2022, the meat company suffered a loss of almost 110 million and Vion closed 2023 with a loss of almost 90 million euros. During that period, debts increased by around fifty percent. More than ten years ago, the group made several acquisitions in Germany to gain a strong position there. The company is reversing this decision, divesting a significant part of its German activities and focusing on production in the Benelux. The main beneficiary of Vion’s retreat from Germany is the Tönnies Group. The consolidation of the German slaughterhouse industry will most likely continue soon. According to market information, Westfleisch is in talks with its Danish competitor Danish Crown about three German locations.

While German pig farmers have new hopes after the end of the “traffic light” governmental coalition, the politically sustained green/vegan trend shows some interesting market figures. Around 5,500 shoppers flock to the Fully Plant-Based store of REWE in Berlin each week, where they can find a full range of vegan products, from produce and baked goods to chilled products and drug store items without having to question labels. According to a survey, over 90,000 people cross the bridge the store is located on every day, and with an S-Bahn station and a large number of office buildings in the immediate vicinity, there’s ample potential for greater footfall. Considering this, 5.500 persons/week entering the shop is not a huge number…

Some notes on the EuroTier fair:

• with China as the second largest exhibitor, the Fair is not so “Euro” anymore
• With the modern communication tools, producers are not affording anymore to wait to launch a new product at a fair
• The Artificial Intelligence is used in all the branches of the animal husbandry
• Due to the lack of human resources, farms are also switching to the robots