Poultry News
A new strategic plan for the Welsh red meat industry has been created with the ultimate aim to increase sales by at least 34% to £776 million a year by 2020, Hybu Cig Cymru – Meat Promotion Wales (HCC) has reported.
The 2020 plan also stated the industry should increase its share of Welsh agricultural output by at least 5% to £624m over the same period.
HCC said these increases would see the red meat industry help boost the entire Welsh food and farming industry by at least 14% in five years to £6.5bn.
The two main priorities of the strategic action plan are: to increase demand for Welsh red meat products, thereby increasing sales and returns; and to improve production efficiency, thereby increasing quality supply, while maintaining the environment and landscape of Wales.
“It’s now time for everyone in the industry to have their say about the future direction of the Welsh red meat sector,” said HCC chief executive Gwyn Howells. “I would urge everyone who cares about its future to take part in the consultation process.
“In an increasingly competitive global marketplace, it is important that we continue to be dynamic in further developing our industry.
“If we are to safeguard the long-term future of the red meat industry and sustain the sector’s contribution towards a thriving rural economy, then we must embrace the latest production and processing methods to enable us to compete effectively with our rivals.
“This is an ambitious plan, but I am confident that if the entire industry continues to work closely together we can meet these bold targets.”
Meanwhile, Welsh red meat has increased its share of the British retail market by £64m over a 10-year period.
“These targets can only be met if the entire supply chain – including farmers, processors and retailers – work in harmony to build on our previous success to ensure a long-term and viable future for everyone,” Howells concluded.
HCC reported it would now enter into an eight-week consultancy process to implement the plan.
A new Welsh poultry processing plant will create 150 new jobs, after planning permission was granted for the multi-million-pound investment in Wrexham.
A former First Milk site at Marchwiel will be reborn as Maelor Poultry, due to investment from Midlands-based business Salisbury Poultry
Salisbury Poultry commercial director Stephen Hammond said: “We are delighted to have the support and approval of the council to go ahead with this major project that will bring a £10m investment and 150-plus jobs to Wrexham and the surrounding area, as well as more jobs in the supply chain that will be needed to support our venture.”
The company, which has a £70m annual turnover, said the Welsh government had supported the project because it met its commitment to working with new food business investors in Wales, under the recently launched Food and Drink Action Plan.
Hammond added: “A lot of hard work and commitment has gone into reaching this point and we very much appreciate receiving the backing of the Welsh Assembly Government.
“Our detailed plans have been carefully drawn up to be considerate to the area and to enhance the site itself, which we are sure is better than allowing this large space and its buildings to become a dilapidated eyesore. At the same time, we will be putting a major site back into productive use and that will send a positive signal to other firms about Wrexham being a place where you can do business.”
Maelor Poultry described itself as a family-owned company with strong values, traditions, and a history of organic growth since 1989. At present, the company employs more than 400 people.
Hundreds of jobs are at risk at the 2 Sisters Llangefni chicken processing factory, it has been reported.
Union Unite told North Wales’ Daily Post that a consultation will start on Monday about reducing the production lines at the Anglesey facility from two to one. The move could reportedly mean the loss of 300 staff at the site.
A 2 Sisters spokesperson said: We can confirm that as a result of a strategic review of our poultry operations, we have entered into a period of consultation with our colleagues at the Llangefni poultry processing site.
“It is paramount that we simplify our business to ensure that we have the right products and processes within our factories to ensure we can sustain the high levels of quality and service our customers expect.
“Therefore, we propose to move to a single shift operation in Llangefni as we reduce site throughput. This means some roles will be at risk of redundancy. This will help us to ensure Llangefni becomes a centre of excellence for producing chicken meat to supply the food service industry.”
Despite only trading for a year, butcher’s shop Premier Cuts Lanark has agreed a substantial contract with a local hotel.
The Lanarkshire butcher’s will supply steaks to the newly renovated Tinto House Hotel near Biggar, after it impressed with its locally sourced produce.
Brian Robinson, managing director of Tinto House Hotel, said it was a pleasure to work with such an exciting new company: “With their produce sourced locally, the quality cuts will reflect the quality of dishes Tinto House Hotel serves to diners in our restaurant. We hope to continue building local relationships – Lanarkshire has so much to offer.”
Gerry Grant, manager of Premier Cuts Lanark, said: “As a new business, all new contracts are good for the company, but we are particularly excited to have been selected by a local business with such a rich heritage like Tinto House Hotel. It’s a great start to 2015 for Premier Cuts Lanark and we look forward to working with them to serve up the quality taste of Lanarkshire to their guests.”
“The poultry meat industry likes recessions,” according to Gary Ford, chief poultry advisor at the National Farmers’ Union (NFU).
Speaking at last week’s AHDB Outlook conference, he told delegates that the price of poultry meat stands it in good stead in times of consumer hardship, although the industry has not been achieving growth purely on price.
Per capita consumption has been on the up since the 1990s, with prospects for the increasing global consumption of meat, between now and 2024, providing a positive outlook for the industry.
While he described campylobacter as a big threat to the industry – “we are on thin ice” – he said the influence of the Food Standards Agency’s name and shame campaign has only had a short-lived effect on sales. “Typically large integrators have noted a drop-off of 5%, but within four to five days of the announcement, that has returned to normal,” he explained.
There has been some evidence to suggest that newer sheds result in fewer cases of campylobacter, he explained. However, the UK has an old estate of sheds, with the average poultry shed age at 24 years, and 60% estimated to be more than 20 years-old.
Recent outbreaks of avian influenza have also been causing problems, with a number of countries, including South Africa, which takes 11% of UK poultry exports, imposing a ban on imports of UK poultry meat in the wake of the established bird flu cases in East Yorkshire and, more recently, Hampshire.
Family-run Irish pork processor Connolly Meats has agreed a new contract with Aldi in Ireland.
Five new jobs will be created as a result of the partnership, which will see the Scotstown-based company, in Co Monaghan, supply Aldi with a new range of sliced bacon and bacon joint products.
The range will be introduced to Aldi’s 113 Irish stores over the coming months.
James Connolly, of Connolly Meats, said: “At Connolly Meats, we pride ourselves on the quality of all the produce that leaves our premises in Scotstown. We are very excited to work with Aldi and hope to be supplying them with the very best in pork and bacon products for many years to come.”
Aldi’s group buying director Colin Breslin added: “We are delighted to welcome Connolly Meats to our growing list of Monaghan-based suppliers. Our business is developing at an exceptional rate in Ireland and, as it continues to grow, there will be more and more opportunities for Irish companies like Connolly Meats to work with us.”
Aldi has tripled its annual spend on Irish products over the past five years and, since 2008, almost doubled the number of Irish suppliers it works with.
Other suppliers to Aldi in Co Monaghan include Castleblayney’s IGWT Poultry Service, which supplies Aldi’s 100% Irish Bord Bía Quality Assured range of fresh turkeys.
Faccenda Foods has reported an increase in profits for the fourth year running.
The company’s annual results saw year-on-year top-line growth of 12% to £520 million and an increase in pre-tax profits to just over £15m, for the 2013/14 financial year.
It is the first time the business has published its results since the company fully combined its turkey operations in April 2014.
The financial year in question also saw the completion of Faccenda Foods’ new £35m processing facility at its Telford site.
Andy Dawkins, Managing Director, said: “Despite a general economic environment that continues to challenge, we have been able to generate growth through working closely with our retail and foodservice partners, growing and succeeding with them.
“Performance has been strong in both chicken and turkey operations and, in particular, we have been encouraged by the success of our expanding convenience ranges.”
Faccenda also noted the success of its Roast in the Bag products.
Dawkins added: “Whilst overall these are a very good set of results, the economic environment and market conditions remain demanding and we will continue to focus relentlessly on delivering fantastic service, convenience, innovation and value to the customer.”
Offal distributor Elmgrove Foods has made the Sunday Times Virgin Fast Track 100 list, made up of country’s fastest-growing companies.
Elmgrove Foods of Co Tyrone, Northern Ireland, produces more than 100 beef, lamb, pork and chicken offal products, which are all distributed internationally. The company made it to 62 on the Sunday Times list.
To make it into the top 100, companies must have an operating profit of over £500,000 and annual sales must exceed £250,000. The distributor makes 100% of its profits from exports.
Stuart Dobson, managing director, said he was “thrilled” to have made the Fast Track 100 list, adding that the market for fifth-quarter products continues to grow.
“The export business for offal is becoming more and more competitive, with increased numbers of UK export start-ups and international customers coming direct to source products. Forging and maintaining long-lasting relationships between suppliers, customers and our strong team have been our recipe for the company’s success. Elmgrove’s key is creating new products regularly, our portfolio has over 100 products, which are of high quality and exceed customer expectations,” Dobson told Meatinfo.co.uk.
Elmgrove Foods also won last year’s Food and Drink Federation Exporter of the Year award, as well as the Queen’s Award for Enterprise 2013.
Richard Branson, owner of Virgin, which has sponsored the fast-track list since it began in 1996, said: “This year’s Fast Track 100 is packed full of examples of entrepreneurs taking on many different challenges head-on. Their success is based on real team spirit and it is this togetherness, above and beyond any other factor, that sets great businesses apart from also-rans. The Fast Track 100 is testament to that spirit of creativity and camaraderie.”
The Soil Association has claimed its Organic September campaign caused a ‘boom’ in the organics market, causing growth of 3.6% during the month.
Nielsen figures showed that sales of organic products in September exceeded £100 million, and the Soil Association said this was down to its campaign, “proving small changes can add up to a big difference”.
Organic September encouraged consumers to change their shopping habits for the month by putting organic food and drink in their trolleys. The campaign involved local independent retailers and online and national UK supermarkets, and reached over six million people through social media, according to the Soil Association.
Finn Cottle, trade consultant at the Soil Association, said; “This is a clear sign informed UK shoppers are becoming more loyal to organic food and drink. Campaigns like Organic September, alongside recent positive publicity and a renewed emphasis on innovation and new listings, are all helping to bolster performance. The organic sector has been performing exceptionally well since the release of Newcastle University’s research on the benefits of organic, and in fact this growth has taken place against the backdrop of a deflated non-organic sector. New products and wider accessibility to organic will continue to help secure growth in this market.”
The organics group said new figures suggested continued growth for the sector. The 52 weeks to 11 October 2014 showed growth of 1.6%, compared to the same period last year. It added that organic poultry had been one of the best performers, with growth of 6.6%. The independent retail sector saw organic sales grow by 6.9%.
Mike Kilcourse, commercial director at wholesaler Tree of Life, said: “Interest in organic foods has been particularly strong recently. Sentiment among our retail customers is positive. Recent growth in sales of organic products will have been helped by marketing and promotional activities right the way through the supply chain. Campaigns such as the Soil Association’s Organic September month-long promotion, which we were glad to support this year, go a long way to help raise awareness.”