Key Risks facing the European Meat Industry

The European meat industry faces numerous risks and vulnerabilities as highlighted in a 2023 study by the EU’s Joint Research Centre (JRC). The challenges range from the climate, through shifting consumer preferences, market dislocations, diseases, red tape, and more.

Meat Industry Risks and Vulnerabilities

Climate and Environmental Risks

Risk: Extreme weather events, heat waves, droughts, excessive rain, and other extreme weather can severely impact animal health and feed supply.

Response:

• Adaptation Strategies: Adjusting feeding schedules during heatwaves, climate-resistant breeds, improved ventilation systems.
• Sustainable Practices: Rotational grazing, integrated crop-livestock systems to enhance resilience.
• Water Management: Efficient water usage and water recycling systems.

Economic and Market Issues

Risk: Economic and market issues, such as market disruptions and input cost fluctuations, are significant concerns. Stable and cost-efficient input supply is crucial for the sector’s performance​.

Response:

• Product Diversification: Create value-added products (e.g., organic meat, specialty cuts).
• Supply Chain Diversification: Find more buyers and suppliers to mitigate risks of changes in supply and demand.
• Cost Management: Use long-term contracts, or leverage global or international suppliers for lower spot prices.

Consumer Preferences and Market Trends

Risk: Consumer preferences are constantly changing, for example towards grass fed, and organic meat, or out of meat entirely into vegan or vegetarian products.

Response:

• Product Innovation: Develop and market new products that align with consumer trends, such as organic, sustainably produced meat.
• Marketing Strategies: Emphasise the nutritional benefits of meat and invest in marketing campaigns that highlight sustainable and ethical production practices.
• Consumer Engagement: Engage with consumers to educate them about the benefits and safety of meat products.

Pests and Diseases

Risk: Pests and diseases, such as Avian Influenza, H1N1 swine flu, and African swine fever.

Response:

• Biosecurity Measures: Biosecurity protocols, including controlling access to farms, regular health checks, and vaccination programs.
• Surveillance Systems: Detect and respond to disease outbreaks promptly.
• Collaboration: Work with veterinary services, research institutions, and government agencies to develop and implement effective disease control measures.

Food Contamination and Safety

Risk: Food contamination, both biological (e.g., Salmonella, E.coli) and chemical (e.g., antibiotics, hormones).

Response:

• Hygiene Practices: Strict practices throughout the production and supply chain.
• Regular Testing: Regular testing for pathogens and contaminants in meat products.
• Traceability Systems: Quickly identify and address sources of contamination.

Generational Renewal and Sector Attractiveness

Risk: Young people do not want to become farmers, with a declining number of livestock farms and a perceived low quality of life in livestock production.

Response:

• Attract Young Farmers: Financial incentives, grants, and training to attract young farmers.
• Quality of Life Improvements: Better housing, healthcare, and community support programs.
• Education and Training: Equip new generations with the skills and knowledge needed for modern livestock farming.

Policy and Regulatory Changes

Risk: Voluminous and ever changing policy and regulatory requirements, regarding animal welfare and food safety significantly impact the sector. Well intended regulations also increase costs for farmers and producers.

Response:

• Assistance: Support and resources to help farmers comply with new regulations, such as funding for infrastructure upgrades and technical assistance.
• Advocacy: Ensure new regulations are balanced and consider the economic impact on farmers and producers.
• Innovation and Research: Develop new technologies and practices that meet regulatory standards while maintaining productivity and profitability.