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E13 Professor David Hughes' Keynote Address at Poultry Network Live image

E13 Professor David Hughes' Keynote Address at Poultry Network Live

The Poultry Network Podcast
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This week on the Poultry Network Podcast, host Tom Woolman is joined by editor Jake Davies for a special post-Poultry Network Live edition. Two weeks after the conference at Harper Adams, the pair introduce an exclusive: Professor David “Professor Food” Hughes’ keynote, captured on video by our on-site filmmaker Finn. The episode sets up that talk and why it matters now—then hands the mic to David.

Prof Hughes opens with the big picture: global food prices spiked to levels last seen in 1973, eased a touch, but remain ~35% above pre-COVID – leaving consumers vexed and farmers squeezed as inputs have risen too. 

He cautions against fixating on US tariff noise alone and flags the World Economic Forum’s “green risks” as the structural headwind shaping food over the next decade.

Turning to protein, poultry keeps gaining share globally – up from ~36% of meat consumption in 2013 to ~41% today – mainly at pork and beef’s expense. 

Yet the quiet outperformer is fish, especially salmon and pangasius, reminding poultry and egg sectors that competition isn’t just red meat. 

In the UK, per-capita meat intake is gently drifting down while total volumes are propped up by population growth; we’re eating meat just as often, but there’s less of it in products.

Hughes contrasts US and UK patterns (Americans now eat ~53 kg of poultry per capita vs ~35 kg in the UK), arguing there’s still upside here.

Eggs are “in good shape” with strong retail value growth; prices are high historically but the UK remains cheaper than several Western peers. 

However, income polarisation is redefining retail: a third of UK households are struggling, pushing supermarkets into relentless value positioning and producing “meat for the haves and have-nots” – from £3/kg whole chickens to premium cuts exceeding £50/kg. Eggs show the same split: value mixed-weight lines versus luxury tiers.

On the shop floor, he sees space and theatre shifting away from raw counters toward “meals and meal components.” 

Food retail and foodservice are converging; convenience rules. UK egg merchandising lags, he says – look to Spain and Asia for how to celebrate eggs with range, packaging and presentation. 

Convenience chains like 7-Eleven in Thailand and Japan have become meal-solution hubs for under-40s; expect UK formats (e.g., Co-op) to lean harder into ready-to-go food. 

Gen Z and Gen Alpha – true digital natives – define convenience as “right now,” buying snacks, mini-meals and components rather than ingredients.

That’s a tailwind for chicken (bites, nuggets, protein snacks) and a missed opportunity for eggs: the UK under-indexes on egg snacks compared with Asia and Latin America. 

Add eating occasions (breakfast and “anytime”), borrow global formats (Korean egg drop sandwiches), and market eggs as portable protein. 

He also notes GLP-1 weight-loss medications may nudge demand toward higher-protein, lower-calorie options – good news for poultry and eggs – while sustainability intent remains high but temporarily deprioritised by cost-of-living pressures (younger shoppers still care most).

Finally, Prof Hughes tracks the scale game: four of the world’s ten largest packaged food companies are protein giants (JBS, Tyson, Marfrig, WH Group). JBS is moving into eggs; Cal-Maine alone produces roughly the UK’s total egg volume. 

As value-added products grow, origin becomes opaque – raising a strategic question for UK self-sufficiency if more snacks and components are imported.

His closing message is optimistic but pointed: poultry and eggs win on price, nutrition, family acceptance and convenience – air-fryer-friendly chicken, microwaveable eggs – but the sectors must continually innovate to thrive.

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Transcript

Introduction and Event Overview

00:00:15
Speaker
Hello and welcome back to the Poultry Network podcast. um I'm Tom Woolman and we we haven't got Tom Willings this week, but but I'm fortunate enough to be joined by um by Jake Davis, editor of Poultry Network. Hello, Jake.
00:00:29
Speaker
Hello, Tom. how are you doing? Very well. Very well. Thank you. Yes. um So we thought we'd do something a little bit different this week. Isn't that right, Jake? what What have you got in in store for us? Yeah, so we're just about two weeks post ah Poultry Network Live, which was in Harper Adams a couple of weeks ago.
00:00:47
Speaker
and And for the first time, we had a videographer there. So Finn was there getting shots throughout the day. So we'll be able to share some of those. He was the really trendy guy, wasn't he he? He definitely shouldn't be at a poultry conference.
00:00:59
Speaker
You could tell. you could tell he didn't work in the sector. Well, yeah, not not in our circles anyway, Tom. Yeah.

Keynote Speech on Poultry Trends

00:01:06
Speaker
Yeah, so so what he also did was filmed Professor David Hughes's keynote speech and Professor David Hughes has very kindly said we can we can share it on the podcast. um So ah this really is just an introduction to his video. It's about half an hour long. so um So yeah, a bit longer than some of our usual episodes, but packed with insights. I mean, what did you think his... Well, I thought it was brilliant. Yeah, he was the keynote speaker, wasn't he? And he opened the conference and he really got everyone going because he's fantastically intelligent, but also he's got a wonderfully witty and engaging delivery.
00:01:44
Speaker
um And yes, and he talked about poultry meat and about eggs. He talked about... um Yeah, well, he's known as Professor Food, isn't he, really? So he he looks at trends, both global trends and UK trends in terms of um ah egg and and poultry meat consumption. And he talks a lot about convenience and how convenience is going to continue to come into the home um and and into food service and and what that means for for our products. So, um yeah, I definitely recommend um everyone listens and and if possible, watch it so that you can see the slides as well.
00:02:19
Speaker
um that yeah you could do that on youtube or um or probably plenty of the other um I think just YouTube, to be honest. okay Yeah. Let's, let's go on the safe side.
00:02:29
Speaker
So yeah. So that, that's about it from, from Tom and I this week. Um, we'll be back next week in the normal format with, um, we've got some really great guests lined up as we, as we go into the autumn, uh, including live tech who we're going to be talking about Avon influenza.
00:02:44
Speaker
Um, so, uh, so yeah, look out for that one in the, in the coming weeks and, uh, yeah, probably, probably return to Tom Willings and Tom Wollman. Um, when they're available well or I'm happy to step in when they're not.
00:02:55
Speaker
Yeah, so okay. Well, without further ado then, we'll we'll hand over to Professor David Hughes. I'll just welcome Professor David Hughes to the stand. Thank you, David.
00:03:08
Speaker
Thank you, sir. Delighted to be here. You go down the front. yeah I'll go sit down now Thank you. You know,

Global Food Prices and Economic Impact

00:03:15
Speaker
if you do this, if you present, you're told that don't have more than about five slides.
00:03:20
Speaker
And I've got about 50. And they're mainly pictures. And that's so on account of Jake. He said, this this group are better with pictures. So there we go. Let's just whip through them.
00:03:33
Speaker
Oh, up.
00:03:36
Speaker
Right, off we go. One. Just starting. that's What's happened to global food prices over a long period of time? You can see on the left hand side there's a peak. That was March 1973. Actually that's when me and long-suffering Susan Hughes ah emigrated to Canada and I was hired there to look at why were global food prices peaking. It was because the Ukrainian and Russian to the same country at that stage, they'll soon be the same if you don't watch it, their grain harvest failed and at the same time there was an oil crisis.
00:04:09
Speaker
And then we saw back went prices and the next time we saw at the same level that peak it was March 2022. And what's the picture here as I say that look over last year close to 10% say global food price increase but what vexes consumers is that global food prices are 35% higher than they were pre-COVID.
00:04:34
Speaker
And then if I quickly switch to what about here and now and egg and chicken prices, and what do we see? Well, you're in the news one way or another, not least egg prices, of course. So rising egg prices push food inflation to 18 month high. This was over a week ago. We're on 5% food price inflation at the moment.
00:04:54
Speaker
So up go ah food prices. That sort of must be brilliant for food producers around the world. They're sort celebrating wherever I go. Well, maybe not so.
00:05:05
Speaker
i mean, actually, there may be some egg ah producers who are celebrating because they're looking pretty good at the moment. But wherever I go, farmers are grumpy. I've just been in New Zealand, they're very grumpy.
00:05:16
Speaker
Australia, the same, Canada. So around the world, farmers have felt the squeeze that up go food prices, but so have their input costs. And in many cases, margins are down. Not necessarily in eggs, but that's another matter.
00:05:31
Speaker
And what's that all that about? Well, it's a whole pile of factors. It's not all about this man. But I was taken... ah my comic on a Saturday is The Economist. And before he came into office, Trump said, this is what I'm going to do in tariffs.
00:05:48
Speaker
And... i mean the the The prescient Cal, the cartoonist for the economist said, that's gonna hurt American consumers, and it certainly is. And what's the tariff policy now for for Trump and the USA?
00:06:04
Speaker
Well, who knows, frankly? I mean, it's just like spinning the wheel. ah So should we just focus on and him and how he can affect world food prices and and and trade?
00:06:16
Speaker
No, look, for God's sake, he's older than me. And you know I'm not in the first flush of youth. And you know any chance he may just fall off his perch, but that's another matter.
00:06:26
Speaker
But actually, i think the big issues if we look at the the the global picture and going forward is on the right hand side here. Every January, I

Meat Consumption Trends

00:06:36
Speaker
look at what the World Economic Forum has to say about the big risks for business going forward in the short and longer term.
00:06:44
Speaker
And this year in January, the first four were green related issues. And it's just a reminder to me that you know coming our way, we can see it, that sort of the excesses of of climate risk.
00:06:59
Speaker
And it will be an increasingly big deal. Okay, what about global meat consumption? Here we go. i mean, the the good news, you see per capita consumption, per capita consumption of land-based meats has increased over the last, what, 12 years.
00:07:16
Speaker
So each year. But the big increases have come from poultry. And so on the right hand side where you see the blues and different percent of total so back in 2013 that poultry's global market share of meat consumption was 36% and it's grown to 41%. And who's it taking it from? Well it's taken it from pork and it's taken it from beef.
00:07:41
Speaker
And lamb has held its own, frankly. But you know, so is it boo hiss if you're in the pork and beef business? No. They've increased, but not at the same rate that poultry has, which is intriguing.
00:07:54
Speaker
Moving on. But you know, as I go around the world and talk to the global meat industry, I'll be doing a lot of that in October, but ah that it always intrigues me that fish is never mentioned. Yet fish is a meat.
00:08:06
Speaker
It's a bona fide ah competitor to all the meats and an eggs for that matter, anything that's that's protein. And as Rubberbank pointed out, that actually you're seeing stronger growth in fish than any other meat at the moment. It's outperforming poultry.
00:08:23
Speaker
And that comes down essentially to two species really. It's salmon and pangasius, or bassa as we know it, or catfish. It's you know one part of of catfish. So watch what's happening, if you will.
00:08:36
Speaker
Many of the places in the world I go to, Asia for example, it's the preferred meat. That's what they want. Only in Asia, well not necessarily. My sister lives in Portugal.
00:08:46
Speaker
Far and away their preferred meat there is fish and and and and seafood. We're sort pretty hopeless in the UK in fish and seafood. the We want it to look like something that isn't fish.
00:08:58
Speaker
Our preference is that it's in fingers, for goodness sake. That's another matter. What about total meat consumption in the UK on a per capita basis? The fact of the matter is that it's drifting down very, very slowly.
00:09:14
Speaker
and

Demographics and Consumption Patterns

00:09:16
Speaker
But the overall meat market is growing. Why is that? Because our population is growing. And it's sort of handy to work out where's the new population coming from and what are their preferences.
00:09:28
Speaker
So there we go, it is shifting down. So population, yeah, moving on. But, so in the UK we're eating less meat per person, but we're not eating meat less times.
00:09:42
Speaker
And as they say, it there's just less meat in processed process meat products. So eating more meat encased in pastry, for example. But there's very little. you know When you go to Gregg's, God love them.
00:09:56
Speaker
And it's a lovely pasty, but you know it's fine, the meat pasty. and But I like particularly, should we panic? Are we going off meat? are we all going vegetarian? Love this, we've never found a cave painting of a salad.
00:10:11
Speaker
the The fact of the matter, around the world, people want to eat meat, largely. you know If you're in certain parts of in India, clearly clearly not, or in in in Bangladesh for that matter. But around the world, as incomes go up, they want to eat more meat.
00:10:28
Speaker
I say check the median age in your target market. So in our market, we're getting older, yeah And of course as you get older you just happen to eat a little less and all the major Western economies if you will the age range is going up Let's include Japan so for example median age in Japan is over 50 median age and if you went to say Niger in Africa mean ah median age is 15 Just think of it
00:11:02
Speaker
There we go. So I do a lot of work in the US or in North America. And often we can see what's happening in the US s and you know can we learn anything from there. You can see in the US that overall, the top line, overall meat consumption continues to increase.
00:11:17
Speaker
i mean, they're well over 100 kg per capita. They're serious meat eaters. When I'm talking at conferences there, I'm surprised they've got the time to come and listen to me. You know, they should be at home, so gnawing their way through the rear end of a steer.
00:11:30
Speaker
But if you see, if you can see back in 1970 was 22 kg and it's 53 was twenty two kg and now it's fifty three kg They're serious poultry consumers. Whereas just to compare, for us, we were at 18 kg back in 1970 and we're now at 35 kg.
00:11:51
Speaker
And it just reminded to me there's lots of upside ah depending in which direction we do go. Moving on. What about eggs? Actually per capita consumption, top line market stats show eggs in good shape.
00:12:05
Speaker
Although, interestingly, we're below average on eggs per capita per year on a sort of global basis. So there's, again, room for upwards. But it looks good. And on the left hand side, it's just where are we on egg prices?
00:12:18
Speaker
That actually egg prices are much higher than they have been in in relative history. but But actually we are one of the cheaper of the Western economies at the moment.
00:12:32
Speaker
Go to Switzerland and you have to be seriously wealthy to afford eggs. That's another matter. But if you look at the retail value of the egg market, it and it's it's a brilliant growth over the last few years. Great stuff.
00:12:44
Speaker
But back to consumers, and they say, it doesn't matter where I go in the world, but particularly what were higher income countries, you see this increasing income polarization.
00:12:54
Speaker
So what's happened over the last five years that the rich have sort of got richer, and the poor have got relatively poorer. In the UK, as I said on the left hand side, the bottom 10% of households in the UK are operating on about 15,000 pounds per annum.
00:13:10
Speaker
pounds piran And I would suggest that in the UK, there's probably at least a third of households are suffering right now. I mean, they make it's really difficult ah for them to put food on the table. on

UK Market Dynamics

00:13:25
Speaker
and and And they've suffered, particularly over the last five, six years.
00:13:29
Speaker
So in the UK, the bottom 20% households spend 20% of income food, whereas the top 20% spend 5%.
00:13:36
Speaker
spent five percent As you can see, there's two distinct markets, income haves and income have-nots. And that polarization sets the scene for what's happening in food retailing in the UK and in many other countries. Because at Tesco, they can't say, we're just going to focus on the richer folk.
00:13:56
Speaker
I mean, for them to keep their number one position, they need everybody to go and shop. And as a result, it's that sort of focus on value. Doesn't matter which of the major traditional supermarkets you go to in the UK, then it's all about Aldi and Lidl price matching, et cetera. That sets the scene. I would suggest that the UK is about the most competitive food price market in the world.
00:14:21
Speaker
but I visit hundreds of countries. 120 countries, whatever it may be, and it's intensely competitive here. Last week I was in New Zealand. There were two supermarkets that have 80% of the markets. It's exactly the same in in Australia. Is it competitive? that Well, sort of.
00:14:39
Speaker
But prices in Australia and New Zealand, I don't know. Food prices, 20% more than they are in the UK. We're intensely competitive. And so you get meat for the haves and meat for the have-nots.
00:14:51
Speaker
and So in that price hierarchy you've got lamb at the top. You have to be seriously wealthy and probably old to afford lamb. And then it goes down from beef, fish, pork to chicken. As you can see here, this is this week's prices in Sainsbury's. I'm still astonished that you can buy A chicken for under three pound a kilo.
00:15:15
Speaker
I think really dear lord or yeah What's lamb lamb at say 16 pounds a kilo? Or for those that can afford you know fillet steak at what is it? 56 pounds per kilo so it's meat for the haves and meat for the for the have-nots I say for the lamb I find that worrisome, lamb prices are so high that every time I see a hearse go by, mean it really worries me ah for two reasons.
00:15:48
Speaker
One, it could be a mate of mine. And then secondly, I know for sure that there goes another lamb consumer. And actually, mean, intriguingly, in the UK, the Muslim population in the UK is 6% of total population and they 35% of the lamb.
00:16:06
Speaker
If there wasn't a Muslim population in the UK, we wouldn't have a land market. That's by the by. And we go, what about eggs? Well, as eggs for the income haves and have nots. Again, I was, ti again, it's this week, ah you know, 14 pence each.
00:16:21
Speaker
If you get the Tesco British mixed weight eggs or alternatively, you can go to Waitrose where there's a big sign saying, you know, only those that are rich come in 64 pence an egg.
00:16:32
Speaker
So it's for the rich or for the poor. depends, you know, which your segment is. Okay. So, As I wander around the UK, particularly in the UK, because I think we're advanced, you can decide whether it's advanced or regressed.
00:16:47
Speaker
I just say, okay, what can we learn from, ah let's take the the meat shelves. So this is in Barnstable, my son has a food business down in North Devon.
00:16:58
Speaker
And here we are in the Tesco Extra. So beef, lamb and fish each have three sets of shelves.
00:17:09
Speaker
underneath pork does substantially better if you're in the pork business you've got the same amount of space as Beef lamb and fish and seafood Actually chicken does particularly well too.
00:17:21
Speaker
You've got put in in this one poultry chicken shop roast chicken So, you know, it's indicative of per capita consumption. The amount of shelf space you get. It's just, you know, retailers aren't silly.
00:17:33
Speaker
Of course we all like beef, but we don't buy a lot of it. And what's more, it's drifting drifting down. But what I do notice around our own supermarkets, it's not about the meat counters or the meat shelves.
00:17:44
Speaker
It's easy meals. That's dinner sorted. Snacking and sharing. Prepared meals writ large. in our market or pasta and sauce, soup and quiche, pizza and bread, anti-pasta.
00:17:59
Speaker
And what we're seeing is food retail and food service converging. If you went back 10 years ago in the the the food business, you said, well, we've got a retail business and we've got a food service business.
00:18:12
Speaker
Food service for restaurants, retail for the for the household. They're just coming together. So what are we selling? We're selling Meals and meal components.
00:18:25
Speaker
And so food retail and food service conversion. You can see it just writ large. If I think back that my dear late mother, i mean I go back to the 1950s, that she would get on a bike and cycle down to the independent, the local grocer.
00:18:42
Speaker
And she used to buy things that, I'd use an old fashioned term that many of you won't be familiar with. She used to buy things she she called ingredients. And of course we don't buy ingredients now increasing. You buy the meal component or you buy the meal.
00:18:59
Speaker
And you know, we may not be happy with that, but that's what's happening and it's happening big time. I love this

Convenience in Food Retail

00:19:06
Speaker
in, so my local Waitrose. If you look down, Thai, Korean and Indonesian, Chinese, Indian, Italian, and and at the back you won't be able to see it. There's a special section for New Zealanders and Australians, and but to shorten it we just call it Pies.
00:19:25
Speaker
So you know that's what we're buying, for goodness sake. What about eggs? What do I notice there? Well, first of all, every supermarket had looked at more recently, you see empty shelves.
00:19:36
Speaker
you know They're not fully stacked. okay And do they sell well? you know Is it a picture of these things? Wow. That's theater, that's real heavy duty merchandising. No, they score about one out of 10, frankly.
00:19:50
Speaker
and And it's often the case worldwide. The one down the bottom is Argentina, which is who was recently. So, you know, could, like my school report used to be, you know could and should do better, frankly.
00:20:07
Speaker
And so putting some theater into retailing, I don't look at the UK or North America for that matter or or Canada. Just look in other parts of the world, not least in Asia, where they celebrate eggs.
00:20:22
Speaker
You know, you go there i think, wow, that's something. On the right hand side in China, there are huge egg consumers and there's 1.3 billion of them for Christ's sake. it was I measured it out, there was 30 meters of shelf space for eggs. It was astonishing.
00:20:39
Speaker
Up on the left, Spain are good at it. You look at that, that's the way to sort of get some excitement into eggs. Thailand, good at it too. I like the the Indian Rahul eggs.
00:20:51
Speaker
you know If you want an omelet, then there's your choice there. And you know here we go, egg packaging for every consumer segment in Panama. you know It may not be appropriate, but but that you know it it catches the eye, frankly.
00:21:08
Speaker
There we go. On we go. So I've been tracking, if I look back over the last year, then a company which you might not know called Couchtard, which is a Quebec company.
00:21:20
Speaker
convenience store, huge company, and in the UK and elsewhere, Circle K. Would you know Circle K? Circle K. And they were trying to buy 7-Eleven.
00:21:35
Speaker
And 7-Eleven is in, what, I don't know, 25 countries. it's It's huge. They failed to buy it. Kushtar, 47 billion, and 7-Eleven said no. Why would they want to buy it?
00:21:52
Speaker
Because they look at what 7-Eleven is doing in Japan and Thailand, and I've got a Thai example here, and they've become the snack and meal solution store for the under forty s And it it's so fabulous what they're doing. And so a couche tard, which is in if you're in a convenience, in history, what were your products? it was Gas, it's a petrol, ah tobacco, and booze.
00:22:20
Speaker
And all three of those are going backwards. And so they're looking at Thailand and looking at Japan and saying, yeah, that there's much bigger margins in good, fresh prepared snacks and mini meals.
00:22:35
Speaker
And that was their big play. And I'm thinking, just watch that because I see it happening. and Here's the co-op just very recently in the UK. So up, they're next gen on go micro store format in the UK.
00:22:49
Speaker
If I look at what's happening demographically, then, so the cop has seen what 7-Eleven has done with the ready to go food in Asia, and we're just accelerating our move in that direction.
00:23:00
Speaker
Because we're at this sort of generational shift here, where I'm a bait i'm an early baby boomer for God's sake, you know, I'm that age. And you can see the world is changing, that it's now increasingly about and alphas, Gen Z, etc. And they they think differently, to the particularly the baby boomers.
00:23:23
Speaker
mean, I like this, that so Generation Alpha. So on the back there is my 13-year-old grandson, and my son Blake sent me this, that was his birthday.
00:23:36
Speaker
And i like Blake's phrase. He said, with we've got a nest of boys for the night. And then I looked at it. I thought, look at them all. There's like whatever, there's six or however however many there are there.
00:23:48
Speaker
All of them are looking at their phones and looking at the TV. at the same time. And it just strikes me that, of course, they're digital natives, and they define convenience completely different than their parents, and in a different world to me.
00:24:06
Speaker
So as that group just move forward and start to earn income, when they say they want it now, they want it right now. Now. And then think of the impact that has on shopping behavior, etc. Are they going to be going out and buying ingredients and putting them in, mixing them and making a meal?
00:24:27
Speaker
Well, you know, maybe once a month and making a big deal of it. So what's the impact on our industry? You've got to work that out. And so those food to go, if you will, it's particularly popular among Gen Z and millennials. Gen Zs are 13 to 30, so under 40s, much, much more likely to be buying ready meals, snacks, mini meals, meal components.
00:24:56
Speaker
and there's And it's their time, frankly. And you just see it in our own market. Here we are just quickly going through these the the gym kitchen. i mean Does chicken do well on this?
00:25:09
Speaker
I would say so. ah Snacks. for goodness The same. that Chicken bites. Fridge Raiders. didn't So it's Pilgrims, which is JBS.
00:25:24
Speaker
i mean, JBS is the largest food company in the world. And its turnover is close to 90 billion US. Absolutely the Brazilian company and it is everywhere where I go.
00:25:38
Speaker
Go to America and see what Tyson's, Tyson's Kansas City Chiefs Nuggets. Just and then into crisps or chips depending how you say and it's chicken.
00:25:54
Speaker
It's chicken. On

Poultry Industry Insights

00:25:56
Speaker
the left hand side I say that Purdue they've got enough cheek for another row of cheek that they just launched sea creature chicken nuggets.
00:26:06
Speaker
I mean, is is that bloody cheeky or what? mean, Jesus. Or ah but for egg people, for working dogs only, it's dog treats. And then on the right-hand side, at home, I live in Monmouth, um the just in Wales, just on the Welsh border, and there's me, long-suffering Susan, and Mabel.
00:26:25
Speaker
And as I'm travelling around the world, it's it's slightly worrisome. I'll ring Susan and say, yeah how was your day? She said, oh, we've had a good day. So she means her and Mabel.
00:26:37
Speaker
And Mabel's got a per capita consumption of chicken which is way above average for the UK. And i i'm I'm serious, if you look down the, for three pound a kilo, Mabel gets her way through a kilo of of Tesco British.
00:26:55
Speaker
I'm not proud of this, in fact it's embarrassing. mean the fact of the matter is that that's cheaper than on the right hand side, butchers tripe dog food. is the same price. I mean, it's what?
00:27:08
Speaker
And I would suggest in many countries, particularly Western countries, where the the the dogs have become unequivocally family, that they're major consumers of your product, whether it be eggs or chicken, for that matter.
00:27:24
Speaker
So back to weaving in eggs here. No offense, egg demand is buoyant in the UK, but we're really conservative on egg snacks. Take a look around Asia, Spain, Latin America, for egg snacks and mini meal ideas.
00:27:39
Speaker
I mean, there's many countries, there's so much better than we are in so using eggs. It's been much a stronger part of their culture in a wider sense than, haven't you had your egg for breakfast? And there's so much to learn.
00:27:52
Speaker
The Korean sandwich, the egg drop has got a lot of coverage more more recently. So just get out of the UK and see how other people use eggs.
00:28:02
Speaker
ah So on the left hand side, I'm a Canadian as well as a Brit and I was in McDonald's probably 25 years ago and I saw chicken for breakfast.
00:28:14
Speaker
Yes, please. And I thought, chicken for breakfast? I mean, for somebody my age, it's chickens for bloody Christmas. Dear Lord, and now it's you know integral. it's you know It's a breakfast ah option. So I'm saying, add another eating occasion if if you can, ah like brekkie or anytime snacking.
00:28:36
Speaker
On the right hand side for eggs, again, go to the top 10 countries that consume the most eggs per capita and find out how they use it. you know What can we learn? I mean, why do they use so many? It may be income related or it may be they just have better ideas how to use eggs, frankly.
00:28:52
Speaker
Or, and

Protein Market Competition

00:28:53
Speaker
ah we're all into AI now, just I put into chat GPT, this is hardly big time. give Give me some tagline options for a hard boiled egg snack. Small egg, big par, pure protein, and grab goes, fuel that fits in your hand, the smallest snack and under a shell, et cetera.
00:29:10
Speaker
And there's so much we can do. If you're not in the snack, but you need to be in the snack business. Because snacks and mini meals as we move forward are increasingly and in such an important part of the overall food consumption, by the by.
00:29:24
Speaker
And of course, meat and eggs are protein, but there's way more now. For somebody again my age, i mean dairy didn't used to be something you sold on the basis of its protein, and now it's big time.
00:29:35
Speaker
So you know it it becomes a competitor, if if you will. Power is on your plate. As I go around the world, um people seem understand that what they put in their tummy has an impact on their own health and the health of the planet.
00:29:52
Speaker
They say that, but do they do anything about it? Oops. No, there's a real big gap. And yet, if you look at the UK, I do a lot of work in Australia, so this was just to point out, Aussies and Brits, lovely people, are all as round as pudding.
00:30:09
Speaker
And so you know we have this sort of obesity crisis, if you will, how does that affect our industry? And then suddenly we have the GLP-1s, we have the anti-obesity medication, AOMs,
00:30:22
Speaker
ah hitting the market and intriguingly, um it's I think it's very it's it's positive for both poultry and eggs, frankly. If you're in salty snacks and what have you, that's hard luck or even confectionery.
00:30:36
Speaker
But if you're in chicken and and and eggs, I think this, it gives you a little boost. And just wait until AOM, so anti-obesity meds, are in pill form.
00:30:47
Speaker
And then you'll see, you'll really just pick up big time, I suggest. Here's Rubberbank saying, yes, ah Maha, make American healthy again.
00:30:58
Speaker
Movement increases chicken demand. And then you can see FMCG, the big food companies, saying, hang on, is it a threat or an opportunity? So here's ConAgra and Nestle, for example, coming out with a whole range of products which ah you can attach to your use of the anti-obesity medication. And they tend to be chicken-based.
00:31:19
Speaker
Okay, on sustainability, ah the people that... The desire to be sustainable is at similar levels, but it's falling away.
00:31:31
Speaker
And why is it the falling away? Have people lost interest? No, they've got too much on their plate. There's a sort of notion, a scientific notion, about the pool of worries. And you can only hold a certain number of worries in that pool at any one time. And they say, Jesus, we've got the mortgage.
00:31:48
Speaker
Energy's going up. What about the children's education? Of course, I'm interested in sustainability in the environment, but ahll I'll get back to it. You know, just give me a break for the moment. I'm trying to get by right now, and they will come back.
00:32:05
Speaker
But they find it, and but encouragingly, those that are most interested are younger people. And that doesn't surprise me in the least, because if you're an older person, me, you know, baby boom an old baby boomer, then you're slightly embarrassed because, hang on, we knew became aware of what was happening, we did bugger all about it, and we don't have to fix it.
00:32:31
Speaker
You know, we'd be long gone. But if you're like 25, you think, hang on, this is an issue that we're going to have to handle. And they're they're sort of well aware of that, I would suggest.
00:32:42
Speaker
But people find it difficult to shop sustainably. ah They say, look, i it's relatively expensive. I'm no expert. How do I find it?
00:32:53
Speaker
I'm too busy. Just shh. I'll come back to it. Okay, almost done. If I look at the world's biggest packaged food companies, there we are, JBS at the top, that great Brazilian mammoth.
00:33:08
Speaker
But I've noticed that four of the largest, this is, you know, take all the big deal, you know, the Kraft Heinz, all together, and it's, there are four of the largest food companies are protein companies.
00:33:20
Speaker
So JBS, what we've got here, Tyson, Chicken, Marfrig from Brazil, And have I done? Have I missed somebody? JBS, one, Marfrig, two.
00:33:33
Speaker
WH Group, which is the largest pork company in in the world. So four of the top ten. Protein is a big, big deal. And I just don't see those big guys getting smaller.
00:33:45
Speaker
So it's just a reminder

Future Outlook for Poultry and Eggs

00:33:46
Speaker
that we have you have to keep your eye on what's happening globally as they decide that they just want to acquire. So an example I'm giving here is JBS wants to become a global leader in egg production.
00:33:58
Speaker
It acquired 50% of South America's largest egg producer. And suddenly it's JBS, mean which started as a small beef slaughterer in Brazil, is now the biggest egg producer in South America.
00:34:14
Speaker
It's the biggest meat producer in the world. It's moved into salmon and other fish elsewhere. The big tent to get bigger. And, you know, I'm taking Cal Maine.
00:34:28
Speaker
and Not that I've done work with them, but I'm intrigued with them. First of all, they had a bloody good year this last year. And that Cal Maine in the U.S. produces 13.6 billion eggs per year.
00:34:40
Speaker
Jesus, it's approximately the same size as the total UK egg market. And they have 20% egg market share in the USA. And so yeah what I noticed with these bigger companies is that they start to cover every aspect of their protein.
00:34:57
Speaker
So it's not just eggs, they've got anything to do with eggs or anything to do with chicken. I'm saying down the bottom mind you know Noble Foods is no bantam and what's more it's got more interesting processed egg range than Cal Maine as far as I'm concerned.
00:35:13
Speaker
But it doesn't matter what part of the food industry I just see it could be avocados and the best avocado company well they'll do guacamole they'll do ah Mexican type foods etc. So so they can go to Tesco and say we can do it all lot we do it all.
00:35:29
Speaker
And I think we will see it happening in eggs and and chicken. Okay, just to finish on time here. i mean, globally for the future for chicken and eggs, frankly, i mean it's it's a delight to talk to you lot because I think in general, it's set fair.
00:35:50
Speaker
We've got a lot to offer on price. In terms of protein, you know you can't do much better. Nutrition, protein, low fat, snack friendly, particularly chicken, but you know in eggs we need work on it.
00:36:04
Speaker
i mean Chicken carries flavor well, it's accepted across the family, it's convenient relative to other proteins. You know you try and make lamb convenient, it is that's a struggle, Jesus.
00:36:18
Speaker
Chicken, very air friable and eggs microwavable. EnviroCredentials, actually pretty good on the carbon footprint, but need work on waste pollution, clearly.
00:36:30
Speaker
But I say don't frighten the daylight set of consumers with regard to technical advances. know, for example, gene editing, keeping the hat on AI, don't scare people. I both avian influenza, that would help, wouldn't it?
00:36:43
Speaker
And artificial intelligence. And maybe the most important thing I'm gonna say, remember, I think we're moving towards more snack orientated, more mini meals, and I think that's huge opportunity for the the two industries we've we've got here.
00:36:59
Speaker
But through time as the proportion of chicken and eggs purchased by consumers is in value added form, I ask the question, where will the raw material have been produced? Because if I look at your basic trade statistics, I can see like chicken imports going up, egg imports going up.
00:37:16
Speaker
And the fact of the matter is when you pick up a snack product, you don't immediately say, wonder where this was produced. you It's gone. And you know is it does it come from Brazil, Thailand, Poland, Ukraine, ah elsewhere? And I think that's going to be the struggle.
00:37:35
Speaker
to make sure that you know we have pretty high self-sufficiency in both eggs and and chicken, but as we move in this direction, we will have more competition from outside. That's me done.
00:37:47
Speaker
Thank you.