Meat+Poultry - January 2024 - 8

COMMENTARY
Cost consciousness
Visiting my family over the holidays
unlocks traditions and experiences
that immediately pull me in to the
spirit of the season. Chief among these
exploits is shopping for the special
holiday dinner.
We bundle up and pile into my
uncle's SUV and, with Motown classics
playing, we head out. There's no such
thing as one-stop shopping on this
occasion. The wholesale market has
the best pork ribs. Potato salad, mac 'n
cheese and dessert are sourced from
the club store. Greens, the smoked
ham hock and Amish chicken require
a trip to a specialty grocery store. And
the supermarket two blocks away will
do for the eggs that will be deviled and
later devoured.
We cover as much ground in a day
as we can stand. Everyone is getting
older, traffic is crazy and the crowds
are thick. But it's worth it to make all
of those stops for the fantastic meal
that as a family we've all come to enjoy.
We really didn't splurge this year; we
bought many of the same food items
this year that we've purchased for past
family gatherings. But we also didn't
compromise on quality.
At each stop though, from the meat
counter, to the produce section and
by the orange juice, I heard a familiar
refrain: " Everything is so high! " It
costs more to eat these days, and
consumers continue to feel the squeeze
of high food prices at the grocery
store. Adapting to this stronger pricing
environment has meant implementing
cost-saving measures.
Anne-Marie Roerink, principal,
210 Analytics, noted these tactics
in the 18th edition of the Power of
Meat report, which noted that 76% of
consumers reported changes to the
amount, type, cut and/or brand of meat
they purchase or where they shop.
And shifts in channel choices
benefited supercenters, club stores and
e-commerce meat sales.
Consumers are working to find a
balance between money, convenience,
taste and nutrition with value and
affordability top of mind. While signs
have pointed to a recovery from the
economic disruptions wrought by
the COVID-19 pandemic, consumers
remain pessimistic in their outlook
for the US economy. And current beef
market conditions aren't helping.
In this month's issue, Contributing
Editor, Steve Kay analyzes what's
likely to come for processors in 2024.
Ongoing herd contraction in the beef
industry will translate to higher retail
prices for consumers. Cattle feeders
and packers also face challenges in
2024 due to herd liquidation.
Another element he mentions
in his piece is the US Department
of Agriculture's
rulemaking aimed
at improving
transparency in
poultry contracts.
Ryan McCarthy,
digital media
editor, reviews some
High prices
will weigh on
the industry, but
opportunities for
growth will arise.
of the rules finalized by USDA with
the goal of ensuring fair treatment
of poultry growers along with the
poultry processing industry's response
and outlook.
Market researcher Circana is
forecasting modest growth in food and
beverage volume sales in 2024. That's
good news for processors like JBS
USA which invested a princely sum
in a new Italian meats plant, Principe
Foods, in Columbia, Mo. Editor Joel
Crews traveled to the college town for
a tour of the facility and details of the
company's potential for growth.
And in more news from JBS
USA, the company took the adage
" If you want something done right,
do it yourself, " and ran with it in
response to reports of a sanitation
contractor hiring minors to clean meat
processing facilities during overnight
shifts. Digital Media Associate Editor
Rachael Oatman spoke with company
insiders to get the details of actions
the company is taking to send a
message to third-party contractors that
noncompliance isn't an option.
ERICA SHAFFER | eshaffer@sosland.com
While signs have pointed to a recovery from the
economic disruptions wrought by the COVID-19
pandemic, consumers remain pessimistic in
their outlook for the US economy.
- ERICA SHAFFER
8 MEAT+POULTRY | 01.24 | www.meatpoultry.com
http://www.meatpoultry.com
Meat+Poultry - January 2024

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