Page 12 - National Poultry Newspaper

Five trends in agrifood for 2021
ALLTECH’S 2021 Agri- Food Outlook focusses on trends that largely re- sulted from limitations due to the COVID-19 pandemic.
“It has resumed the po- sition as the No. 1 feed- producing country, and it started 2021 with strength.”
percent increase in soybean meal prices during the past five months,” he said.
While China’s quick re- bound back to its place as the world’s largest feed producer is Alltech’s top story of its 2021 Agri- Food Outlook, other in- dustry trends stem pri- marily from the global coronavirus event.
Mr Wilson said the in- dustry had largely restruc- tured, with backyard farms replaced with modern, large-scale facilities.
Alltech global purchasing and supply chain director Eric Glenn said, “These are price levels that we haven’t seensince2014.”
The occurrences of the past year caused a shift in supply chains to trust- based transactions, saw the rise of ecommerce, made health a consumer priority and created in- novation through empathy and inclusion.
“Waste that was previous- ly fed to pigs is no longer an acceptable feedstock,” he said.
“This has led to higher prices for vitamins and amino acids that many people expect will continue into the second quarter.
Alltech highlighted these five trends in its 2021 Agri-Food Outlook, presented in a virtual event on January 26. China
Poultry prices in China improved slightly in the second half of 2020, “but performance continued to be weak and the world market demand for poultry recovered steadily, and the supply is growing rapidly,” Ms Jia said.
“Amino acids such as ly- sine and methionine are al- so expected to be in strong demand as commodities like soybean meal and corn have increased in price,” Mr Glenn said.
through the supply chain, we can’t tell an authentic story to the consumer about that product,” Ms Britton said.
cial proof are great ways to build trust and credibility.
with health benefits above and beyond the norm, like selenium-enriched eggs or DHA-enriched milk, to give them a greater sense of control over their health and well-being.”
and valued for their contri- butions,” Dr Lyons said.
China’s pig herd was decimated over the past two years, as African swine fever spread quick- ly throughout the country.
While food producers face those challenges, IMI Global senior director of operations Kathryn Britton said they also must realise consumers’ growing desire for more transparency in food and livestock produc- tion.
Ecommerce exploded in 2020 as a result of lock- downs and stay-at-home orders related to the pan- demic.
Health
Reinforcing previously mentioned trends, she said trust and transparency are becoming more important for consumers, who tra- ditionally base their food purchases on price, taste, familiarity and health.
Alltech Mexico general manager Bianca Martins said companies should have inclusion programs – not just diversity goals.
But in 2020, China saw a faster-than-expected re- covery.
“We expect there will be more investment in the breeding program of beef cattle and sheep this year,” she said.
Shifts in supply chain
Now that consumers have become accustomed to or- dering more things online, companies need to build on the trust that has been cre- ated and build their brands.
Health became an even greater priority for consum- ers in 2020, “strengthening a trend that was already underway,” Mr Lyons said.
“We talk about diversity, we talk about equity, but inclusion is much stronger than anything,” she said.
Alltech president of Asia Jonathan Forrest Wilson said: “The swine market in China came back faster than anyone would have expected.”
“Because we’re able, as an industry, to have a story about food production and translate that through the supply chain, consumers were able to continue to trust in the food that they were purchasing.
“We started to seek out health-boosting foods, and even as restrictions lifted, these new, healthier habits continued.
“But gaining in populari- ty is the review and consid- eration of the entire product life cycle, from welfare to supply chain transparency to brand alignment with personal values,” Ms Put- nam Badding said. Innovation
“Diversity is the traits and characteristics that make people unique, but inclu- sion refers to the behav- iours and social norms that ensure people feel welcome and comfortable to be part ofsomethingreallyimpor- tant.”
According to Alltech China director of cus- tomer experience Winnie Jia, China’s pig produc- tion capacity has recov- ered to 90 percent of its 2017 numbers and growth is expected to continue.
Global food supply chains
faced great challenges due
to the pandemic, but re-
mained strong, Mr Lyons
said, adding that the past
year has created demand
for more trust and transpar-
encyfromfoodproducers. “It’s important to con-
A lltech digital market- ing manager Anand Iyer said, “Nobody wants to buy from a brand they don’t know about.”
“This trend will have major implications for the food supply chain.”
Alltech president and chief executive officer Mark Lyons said, “China has exceeded expecta- tions, with an incredible rebound in 2020.”
“If we don’t know the source, if we don’t know where that feed product is coming from, or where that animal is coming from, and then be able to track that
“A comprehensive and easy-to-understand privacy policy, partnership badge, contact information and so-
“Fear has always been a purchase driver in the health space,” she said.
“Innovation is fuelled by cultures of collaboration where there’s an openness to every idea, where every person can be seen, heard
“The reduction in back- yard farms really increased the need for modern com- pound feeds.”
“Premix companies are also telling me that logis- tics remain a concern for shipments out of China, that there is a lot of conges- tion at import ports and that truck freight within local markets has been tight.
In the ruminant market, “feed costs are rising, and overcapacity and biosafety are still the three main challenges for the whole industry.”
Ecommerce
“Personalisation, excep- tional customer service and one-to-one relationship will help build trust with your customers.”
“There’s never been more pressure on businesses, nor has there ever been more opportunity.”
“After six years of abun- dant global grain supplies and relatively stable com- modity markets, we have now entered a period of tightening supplies and strong demand, resulting in a 57 percent increase in corn prices and a 52
sumers that food compa- nies tell an “accurate, au- thentic story about food.
“Quality of the product, traceability – these are all thingsbrandsneedtocon- sider,” he said, adding that there were several things companies can do to build a good rapport with cus- tomers.
Alltech director of Acutia and human nutrition ini- tiatives Nikki Putnam Bad- dingsaidfearandfunction- ality are drivers of health purchases.
Businessesfacethechal- lenge and opportunity of using empathy and inclu- sion to drive innovation and collaboration.
“Companies can sup- port inclusion by having a clear mission and pur- pose, showing empathy, understanding that every employee brings unique experiences, and having an inclusive culture.”
“Over the past 10 years, we’ve seen health-con- scious consumers turn to functional foods, or foods
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Page 12 – National Poultry Newspaper, February 2021
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