Guillaume Roué, IMS: The global meat industry must step up its efforts to build consumer trust
EuroMeatNews: What are the main challenges for the players in the meat industry?
Guillaume Roué, president of IMS: By 2050 there will be an estimated global population of more than 9 billion, up from around 7.5 billion today. That growth will be almost entirely in developing and emerging economies. Many will also be richer than today and, as they currently have much lower levels of meat consumption than in richer countries, will increase the demand for meat and other animal-sourced food. But there are still over 800 million hungry people in the world. Therefore, the biggest global challenge is not just producing enough to satisfy the projected growth in meat consumption but doing so sustainably and fairly to improve the nutritional status of vulnerable people.
The uncertainty as to the future of the multilateral trading system, underpinned by the WTO and regional trade agreements, is a key concern. IMS is a fervent supporter of free trade. In this very fluid and changing context, the industry wants to ensure open international markets, with trade subject to evidence-based standards and regulations mutually agreed among countries, operating on a level playing field, avoiding unfair competitive practices.
The livestock industry continues to be vulnerable to infectious diseases. The latest headlines are focused on African swine fever, with an outbreak in China and the potential for further spread within Europe (the virus has been found in wild boars in Belgium). But there are many other diseases, so there is a continuous challenge to improve animal health and welfare. IMS cooperation with the World Organisation for Animal Health (OIE) and other competent intergovernmental agencies is fundamental.
The meat and livestock industries have been keenly aware of the need to address the challenges and criticisms they are facing to enhance sustainability while meeting changing consumer demand. The responses have been on various levels but always based on sound scientific evidence. At the international level, the IMS brings together national organizations to discuss common issues and problems, engaging and providing input to discussions in relevant international government organizations, including the Food and Agriculture Organization (FAO), World Organisation for Animal Health (OIE), the Codex Alimentarius, the United Nations Framework Convention on Climate Change (UNFCCC), and the Global Agenda for Sustainable Livestock (GASL).
The IMS and its member organizations have been tireless in contributing its expertise and drawing on robust research. An important point to stress is that some of the criticisms of the industry only focuses on a single-issue approach and does not recognize the complex trade-offs that are involved in meeting a wide and diverse range of objectives. This is why the global approach pursued by IMS members is the way forward.
EMN: What consumption trends have you noticed so far and how are they shaping the meat industry?
GR: With the explosion of social media, different views and opinions vie for the attention of politicians and the public. In many countries, particularly (but not only) in the developed world consumers, NGOs and commentators want to return to small-scale, less intensive, organic, local- sourced traditional livestock systems, but it must be stressed that this is a high-cost approach. The challenge is to adapt to changing consumer preferences, with a steady decline in overall per capita meat consumption especially in developed countries, a shift to “white meat” (and no meat diets), and confronting criticism on a wide range of issues, concerning animal welfare in intensive production systems, water pollution from animal manure, and health risks from red meat consumption.
The global meat industry must step up its efforts to build trust and communicate peer-reviewed scientific evidence as to the environmental, and nutritional and health benefits of meat consumption in a balanced diet.
EMN: What is your opinion on plastic packaging? Is there a general consensus among the players in the meat industry to reduce plastic usage in their packaging?
GR: First of all, packaging is important because it is allowing us to enjoy high-quality goods safe, fresh, undamaged and uncontaminated from everywhere around the world. Perishable foods especially have shorter shelf life than any other packed, preserved foods in the market, using the right packaging is highly essential to avoid spoilage and to maintain its quality and freshness before your food products would reach to consumers. Plastics packaging make packaging lighter, shatter resistant and more energy efficient. In most developed countries, various plastic packages are being recycled or recovered for energy value.
The meat industry is constantly innovating in packaging design to minimize plastic usage. For example, increasing use of mono materials which are easy to recycle. Another example, one of our partners is implementing regrowable fiber-based materials, such as paper, cardboard, and materials based on so-called “biopolymers”. We believe that better packaging technologies will help reducing packaging material waste and food waste.
EMN: There are a few producers that started to reduce the use of antibiotics in animals. Do you think this will become a common aim for the global meat industry in the following years?
GR: IMS promotes responsible use of antibiotics. This means using only when needed, under the supervision of a qualified professional (for example a veterinarian).
As a producer, I use only as much as necessary to ensure both good animal health and welfare. Moreover, antibiotics are expensive! The IMS is committed to the global effort to better manage antibiotic use in livestock, for example
through our participation in the Interagency Coordination Group on Antimicrobial resistance which is composed of the Codex Alimentarius, the World Organisation for Animal Health (OIE), and the World Health Organisation (WHO). I would also remark that it is equally important to properly manage antibiotic use in humans.
EMN: What is your opinion on blockchain technology? Will it spread further in the global meat industry?
GR: Blockchain is an exciting new technology that could have a positive impact on the global meat industry, particularly if it can deliver on the promise for more transparency and trust. For example, the meat industry’s continuing efforts to improve sustainability could be better communicated to the consumer. However, it is not a magic bullet – it does not suddenly make the data entered more accurate, or those entering the data more trustworthy. There is still a lot of work ahead to adapt it for the specific needs of the meat industry.
EMN: How will Brexit and the recent trade wars shape the global meat trade?
GR: The first point to note is that as yet there is no agreement on what sort of Brexit will emerge – and which trading relations the UK will have with the EU and with other countries. From the various studies that have been undertaken it is clear that the “harder” the Brexit (the UK is no longer part of the EU single market or customs union and trades on WTO terms) the more disruption to trade in the short term, and the more adjustment required in both the UK and other countries, particularly in the EU countries that engage in a lot of meat trade with the UK. On the other hand, meat-exporting countries, including New Zealand, Australia, United States, Argentina, Uruguay, and Brazil, might be expected to pick up more business in the UK. In reality, it is likely that there will be a move to the mutual recognition of regulations, standards and customs procedures between the UK and other countries, but it is too early to say.
EMN: There has been much debate on whether the lab-grown meat is safe for human consumption. What is IMS’ position on this subject? Is it a threat to the global meat industry?
GR: Lab-grown meat is an interesting but still very new development with many unanswered questions. The IMS position is that the many benefits of including naturally produced (from animals) meat, as part of a balanced diet are scientifically proven, but they are not for lab-grown meat. Moreover, the claims that lab-grown meat will be more environmentally friendly (use less land, water, etc.) are not proven. In fact, it is well established that livestock use land that is mainly not suitable for other agricultural activities, use mainly feed not suitable for human consumption (that would otherwise be wasted), and in so doing bring a net environmental contribution to sustainably feeding the world.
EMN: The vegan and vegetarian trends are becoming more popular. So far, France was the only country in the EU to take charge on the problem of denominations. Do you think other countries will follow France’s move?
GR: The consumer deserves to know the truth about the product they are purchasing. Meat is a high value, an excellent source of high-quality protein which is also full of essential micronutrients. It should be illegal to not clearly label non-meat products to avoid confusion with real meat. I believe many other countries will soon follow a similar path as France, which is well known as a country of gastronomy.
EMN: There have been a lot of companies that lately are producing more bio-organic meat. How do you see the evolution of this trend?
GR: At the end of the day, we need to supply according to consumer preferences. Organic meat production is more expensive, but some consumers are willing to pay for it. Similarly, other consumers have less disposable income and want affordable meat – we need to also supply for that market. I want to point out that there is no single definition of what is “organic” meat, so there is a lot of potential for confusion. Another confusing term I often see applied to food products (not just meat) is “natural”, which has even less scientific meaning. My point is that the meat industry always has and will continue to adapt to consumer demand, but at the same time it is also important for us to provide clear, transparent information about what we are doing so that the consumer can make an informed decision.
EMN: What is IMS’ projection regarding the meat prices?
GR: The IMS does not undertake forecasts or projections of prices of meats, although its member countries draw on their own assessments or draw on the analysis undertaken in international government organizations or independent research consultancies specializing in agriculture and food, such as GIRA. The principal source of intergovernmental projections and analysis in the agriculture sector is the annual OECD-FAO Agriculture Outlook, which makes projections for the next 10 years.
The latest edition notes that production in 2017 reached record levels for most primary agricultural commodities. Global meat production, which increased by 1.25% in 2017, is projected to be 15% higher in 2027, three-quarters of which will come from developing countries, with poultry seeing the most rapid expansion, followed by pig meat. But demand growth has started to weaken, in particular in China and new sources of global demand are not considered sufficient to maintain overall growth, and this is expected to persist over the coming decade. As a result, prices of agricultural commodities are expected to remain low. While nominal meat prices are projected to gradually increase until 2027, prices adjusted for inflation are expected to trend downwards.
EMN: Which countries do you think will further develop their meat industries and increase exports?
GR: According to the OECD-FAO Outlook, the combined share of the two largest meat-exporting countries, Brazil and the United States, is expected to increase to around 47%, contributing nearly two-thirds of the expected increase in global meat exports over the projection period. However, China is a country to be watched as it is intent on increasing its level
of self-sufficiency in meats.
EMN: What markets do you expect will witness a significant growth?
GR: According to the OECD-FAO Outlook, at the global level, meat exports (excluding live animals) are projected to be 20% higher in 2027 than in the base period. This represents a slowing down of meat trade growth to an annual average rate of 1.5% compared to 2.9% during the previous decade. Meat imports into Asia account for 56% of global trade, and poultry will constitute more than half of this additional import demand. Rapid growth in imports from Africa is projected to increase the import share of the region by 2027. The Middle East North Africa region will also increase its import of meat, the bulk
of this growth in Saudi Arabia and the other Gulf States.
As the projected production growth in developing countries remains insufficient to satisfy demand growth, particularly in Asia and Africa, import demand is expected to remain strong throughout the outlook period. The most significant growth in the share of additional meat import will be in Asia, in particular in the Philippines and Viet Nam. Developed countries are still expected to account for more than half of global meat exports by 2027, but their share decreases slightly relative
to the base period.
EMN: What is IMS’ strategy in promoting meat consumption?
GR: We believe meat and livestock products have a key role to play in sustainably feeding the growing world population. More importantly, without livestock, there cannot be a long-term sustainable agriculture. It is not a question of plants versus meat. We need both livestock and crops to co-exist and be produced in the most sustainable ways.
The consumer wants to be reassured that the livestock industry is striving to be more sustainable. It is not often known for example, that according to the FAO more than 80% of livestock feed is not edible by humans, and that often livestock is raised on land not suitable for arable crops (such as in arid and mountainous regions). The IMS mission is to foster continuous improvement in sustainability with a solid basis in science. I also want to emphasize that it is not only a question of reducing harmful environmental impacts and limiting greenhouse gas emissions, it also means enhancing beneficial impacts, such as capturing carbon in pastures, increasing biodiversity linked with livestock and livestock feed production, and preserving valued landscapes.
The IMS believes that when consumers have the right, science-based information about the nutritional qualities of meat and animal products (milk, eggs, etc), they will be convinced of the many benefits it brings. Dietary guidelines around the world recommend consumption of meat in appropriate amounts as part of a healthy, balanced diet and lifestyle. Meat is an important source of more than 10 essential nutrients required for growth, development and general wellbeing, including protein, iron, zinc and B vitamins. Above all, meat is delicious, and the consumer can enjoy it, knowing that in doing so they are also contributing to global food security and sustainably providing for our growing world population.
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