IFFA 2019 is all about safe and economical production - VDMA
The German meat industry is changing by adopting new technologies and that led to a dynamical growth for the meat processing machinery sector, which is worth now around €2 billion, according to Beatrix Fraese (photo), Head of VDMA Meat Processing Machinery Department.
How this industry will evolve further and what it will be the effect of Brexit for this sector you will find in an interview for EuroMeatNews.com.
What are the results of 2018 for Meat Processing Machinery Association inside the VDMA compared with the previous year?
According to preliminary data, German production of meat processing machinery again grew slightly in 2018 and will reach a value of 1.1 billion euros. In addition, there are packaging machines, weighing technology, conveyor technology and automation components that are used in the meat industry, the value of which we can only estimate due to their allocation to other statistical groups. We put the sum of these machines and components at around 1 billion euros. We are therefore dealing with a total production value of more than 2 billion euros. Last year and also 2017 the domestic market grew more dynamically than the export markets, which, however, remained stable at a high level.
If an unregulated Brexit will occur at the end of March 2019 what effects it will have for this industry?
We cannot predict that. According to the British market research institute Euromonitor International, the UK is the fourth largest meat producer in Europe. And meat production is expected to grow by 2% annually until 2025. In the medium term, machine demand will continue to have to be met by imports, as there is no local mechanical engineering in this segment. How all this is done is a major task for politicians, who have to shape the framework conditions accordingly.
To what extent the German Meat Processing Machinery businesses are exposed to the British market?
The UK has been one of our top 10 markets for years. Despite or perhaps because of the Brexit, exports from Germany to the UK increased significantly in 2018. They were 17% higher than in the previous year and reached 28 million euros. In 2018, the UK thus ranked fourth in our top 10 list after the USA, Russia and France.
What are the current trends in the Meat Processing Machinery line of business and what should we expect to see at IFFA 2019?
Many innovations will be aimed at optimising the entire processes in processing and packaging. Digital solutions will also be used. It's all about safe and economical production, Overall Equipment Effectiveness, fast ROI. The further automation of production, which is a challenge due to the complexity of the product compared to other food segments, will also be the focus. Food Safety - from hygienic design to adaptive cleaning processes and data-based traceability - all these topics will be covered in full.
Packaging technology is all about minimizing the use of packaging materials while providing maximum protection and the longest possible shelf life. Resource efficiency plays an outstanding role here.
Do you see further consolidation of this sector?
Compared to other industries, the concentration processes in medium-sized meat processing machinery manufacturing are in my opinion not very pronounced. The takeovers or participations that have taken place in recent years can be counted on one hand. If a company acquires or participates in another company for market strategic reasons, it is often a win-win situation for both parties.
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