Online sales will influence the livestock production
One of the latest reports of Rabobank talks about a new revolution in the food industry, one that is shaped by the e-commerce and it will influence the livestock production.
"Changes in where consumers buy groceries when they buy, and what they buy will inevitably force changes all the way through the supply chain. Nowhere will these changes be more dramatic than in perishables such as meat", considers RaboResearch Food & Agribusiness Senior Protein Analyst Don Close.
There is a constant competition between IT giants to gain a bigger market share on online grocery sales and it seems to have started a few years ago with Amazon buying Whole Foods for $13.1 billion dollars.
Don Close predicts that 20% of food for in-home consumption will be purchased online by 2025. That includes traditional groceries and complete meals packaged in the meal kit category. In those categories will enter also niche products as prime, natural, NHTC, organic, grass-fed or antibiotic-free. "These niche desires will result in additional demands on cattle quality and production specifications, which will lead to a wider price spread across all classes of cattle, as well as a more detailed premium and discount schedule,” Close says. “These changes are indicative of a permanent change in the way food reaches the average American consumer—and if the beef industry is to ward off any further decline in beef consumption, it must embrace these changes and make beef an integral part of the consumption experience, regardless of where it is purchased", explained Close in the report called "Food Fight! Online and Brick & Mortar Battle for Business. How Can Beef Ensure a Seat at the Table?".
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