A LOOK AT THE CHANGING ROUTES TO - Norfolk Farming …€¦ · Specific information (‘small print’) on packaging/POS often overlooked. Welfare and responsible farming Farming

A LOOK AT THE CHANGING ROUTES TO MARKET AND HOW BUSINESSES CAN

PLAN FOR OPPORTUNITIES IN THE NEW AGRICULTURAL MARKET

A Few Facts About Tulip Ltd

Parent company Danish Crown

>£1.BN turnover

Leading consumer food solutions business in the UK supplying retail and food service

Circa 7,000 employees (including contractual labour)

Farming over 60,000 sows

Provide a farm to fork solution using industry leading production systems

17 sites located throughout UK

4 abattoirs across the UK

Danish Crown - World Market Access

136MARKETS

GLOBALLY

Danish Crown Provides Tulip With World

Market Access

136MARKETS

GLOBALLY

Danish Crown Provides Tulip World-MarketAccess for All Parts of the Pig

Tulip Today

TULIP ACRICULTURE DALEHEAD TULIP FRESHTULIP FOOD

We have been farming in the UK for

over 30 years.

We are the No. 1 outdoor-bred pig

producer. We are the largest British organic and free range pig producer.

Strategic ‘farm to fork’ partnership

focused on Waitrose including BQP (British

Quality Pigs) –Waitrose dedicated

specialist pig production division and Dalehead Lamb

Working with key retailers and B2B

operators to deliver great tasting, healthy,

convenient mealsand snacks everyday.

Dedicated abattoirs and butchery halls

focused on best in class meat

production.

Secondary Processing

Tulip Sites

BQP Own Farms & Tulip

Independent Farmers

Abattoir:Tulip

Westerleigh

Added Value Further

Processing

Retail Packing -

Pork/Sausage/

Bacon/

Cooked Meats Tulip Sites

FurtherProcessing

Abattoir:Tulip

Ashton

Abattoir:QPP

Exports

ExportsAbattoir:

Dalehead Spalding

6

Tulip Ltd Pig Meat Supply Chain

Imports

Customers

Our Customers Include…

Our Product Range Includes…

Tulip Ltd

Outdoor Bred Pig Production External Pig Supply

BQP, Tulip Agri farms & independent farmers

working to RSPCA and own bespoke standards

Independent Farmer

Supply Base

BQP/Tulip UK Pig Supply Chains

(~2.5m pigs p.a.)

Red Tractor indoor pig production

(65%) (35%)

Breeding Stock/ Genetics

>600 BQP / Tulip Farms

Tulip Abattoirs & Primal Cut

Feed Supply Partners

BQP/Tulip Higher Welfare Outdoor Bred Supply Chain

Farming Standards

Production, Technical & Veterinary Staff

Logistics

Tulip Butchery & Further Processing

Tulip Exports Customers

Tulip UK Customers

Stock

Working With BQP/Tulip:Summary of Inputs Provided to BQP/Tulip Farmers

Feed

Haulage/Logistics

Veterinary

Technical QA Assistance (Fieldstaff)

Land and Buildings

Working With BQP/Tulip:Summary of Inputs The Farmer Provides

Labour

Equipment

Other on farm inputs e.g. straw, water, repairs

MARKET TRENDS

£1 in every £7 will be spent in a

discounter by 2022

Shopper Trends

Accessible luxury and less

but better

Meal for tonight / something for now missions

IGD retail analysis

Aldi are on track to have 1000 stores by

2023

Technology supported meal

deals will change the

promotional landscape

Market Trends 2019 - 2025

Online will grow by 52% in the next 5 years = £6bil

Click and collect and new entrants are revolutionising

the way we shop online adding convenience and inspiration to the online

shop

“The UK Grocery Market will grow by 15% by 2023 but the growth

will be largely inflationary.”

THE EVOLVING CONSUMER

The Key Factors Influencing Our Landscape

Health

Environment

Lifestage

Digital

Sourcing

The Consumer

Total red meat sales falling consistently over the past five years

Fresh and Frozen Red Meat: Volume

Health

Value -5.1% and volume -6.1%, some inflation seen in the past year

Red Meat Consumption is Changing

Meat remains popular with shoppers, although mix of product changes

Increasing number of us are making more personalised choices about what we eat

Health

“3% GB population

are vegetarian/ pescatarian (eat fish)”

“YOY growth”

“Younger Families”

“7% of GB population can be described as ‘flexitarian’ reducing red meat consumption due to health and environment concerns ”

Not about diet but lifestyle

Consumers are seeking more information to make their choices

There is a trend towards ‘natural’ and ‘holistic’ eating where agriculture can play a key role

© IGD 2018

Page

Source: Retailers, IGD Research

Vegan Ranges

New approaches to meet growing demand and

prove vegan food can be flavoursome

Healthy Snacking

Created by PepsiCo, Off the Eaten Path is a

healthy snacking brand available only through Sainsbury’s in the UK

Health advice

Waitrose has teamed up with BUPA to offer a range of health services in-store

Healthy eating: New ideas to engage shoppers

Health

Source: Retailers, IGD Research

Growing fears around the production of meat means consumers are concerned with associated health risks and will likely need grater reassurance in the future

Health and Food Safety

Food Neurosis Transparency Nitrates

The nitrates in bacon are beginning to be demonized due to

their links to cancer and other health

problems

Increasing supply chain concerns is seeing consumers demand greater

transparency and traceability

Consumers have had so many conflicting

messages around the health risks of meat

the future could see a rise in food anxieties

Lifestage

Shoppers of the future will be…

The grocery shopping

experience will have to work

harder so shoppers can optimise their

time.

Health and wellbeing will

grow in importance with

subtle differences owing to individual

motivations.

Shoppers in the future will be open

to a more personalised food

and grocery experience, but only if there is a clear benefit to

them with minimal effort.

Shoppers in the future will

increasingly experiment with their shopping

and meal preparation to broaden their repertoires.

Shoppers will want to make

sustainable and ethical choices, but only if other needs are also satisfied.

Companies will have to respond on

shoppers’ terms.

Consumers take their consumption habits with them –how do we increase appeal in our declining sectors and

develop the right products?

Millennials are today’s consumer and the future of farming…

Millennials care about the food chain and sustainability

Lifestage

Sustainability is important

Meat consumption looks set to fall

Technology is already changing the traditional image of farming

Millennials want to change the world one field at a time

• .

Growing concern for where and how we live, leading to increased interest in how food is grown and produced

Environment

Sourcing

Instant access to information is the norm and an expectation of shoppers

Reducing meat consumption but increasing the quality of meat when consumed

Do we need to add another picture?

HEALTH

Encompasses a

range of factors –

primarily fat/salt/

sugar and level of

processing

Consistent Factors Taken Into Account By Consumers

A number of factors considered when making decisions about food

purchasing – particularly in fresh categories

QUALITY

Multifaceted :

judged by visual

appeal; trust in the

retailer; prior

knowledge of the

product; price

EXPERIENCE

Prior knowledge of

products is a strong

driver – repeat

purchase is very

common

PACKAGING

Considered both

practically (primarily

level of product

visibility) and

aesthetically

(grabbing attention

on shelf)

Specific information (‘small print’) on packaging/POS often overlooked

Welfare and responsible

farming

Farming or growing standards –

e.g. free range/ organic

Traceability –a known journey

Association of specific products with a country or region of origin

Visibility/ communication

of place of origin

Sourcing more top of mind, and important,

than origin

Two Key Factors For Consumers Constitute Provenance

MOVE WITH THE TECHNOLOGY

Online Shop % of Smartphone shoppers who have bought from here in

2018

Amazon 89%

eBay 63%

Argos 41%

Tesco 35%

M&S 25%

Asda 25%

Sainsburys 22%

John Lewis 20%

PC World 17%

Digital

Embrace the Technology

Digital

The concept of online is changing

SO WHAT ARE WE DOING TO MEET CONSUMER NEEDS AND TRENDS?

Added value lamb and pork including garnishes,

accompaniments and sauces

NPD to Meet Consumers Needs and Wants

Rolled Shoulder of Lamb with Anchovy & Caper filling, Green Pepper Butter, Lamb & Kombu Jus & Parsley & Caper Dressing

Ready to eat protein ‘food on the go’, in recyclable packaging

NPD to Meet Consumers Needs and Wants

NPD to Meet Consumers Needs and Wants

Fixed Weight Gammon Joint – tackling mid week consumer

Cured Slow Cook

BBQ NPD

Beyond premium…

Premium Plus+

NPD to Meet Consumers Needs and Wants

The Honest Butcher RangeWhat does this slide add??

THE PREMIUM PORK EXAMPLE

THE RESPECTFUL MEAT EATER

PIG-TO-PLATE HEALTH

AFFORDABLE PREMIUM

PREMIUM PORK DRIVERS

BORN TO BE WILD

CRAFTMANSHIP

STORYTELLING FLAVOUR. FLAVOUR. FLAVOUR.

SNACK TIME

What Different Consumer Drivers Should We Focus on to Successfully Market Premium Pork?

LETS SHOUT ABOUT WHAT WE DO WELL… “HIGH WELFARE”

Let’s Shout About What We Do Well

Internationally recognised welfare accreditation and acknowledgement will help to ‘sell’ our higher welfare products

High Welfare Differentiated Production Standards & Products

More Important than ever for the UK market

Growing export market interest, USA, Australia etc.

“Real Welfare Outcomes”

THE WORLD IS OUR OYSTER…

Carcass balance (UK requirement)

23 Million Pigs7 Million Pigs 19 Million Pigs

UK Production approx 11 Million Pigs p.a

UK 2018:

54% self-sufficient

Implementation of Tariffs Could Further Affect Carcase Balance

UK pig meat exports continue to perform strongly

Tariffs do not

necessarily = NO

trade

But…obviously add

cost and complication

Biosecurity is key and Brexit may provide an opportunity to improve border controls

Livestock and Crop Health

Threat of disease is ever present

Increased importance of UK livestock and crop health status

Export health certifications rely on high health status of UK livestock, PRRS China example

“Top 20 global grocery markets to add US $1.9 trillion by 2023”

“Asia leading growth outlook…”

“…With strong support coming from Europe and US”

Significant Global Opportunities Exist If We Can Compete!

China & USA key markets, other interesting markets including Australia, Canada, Korea and Japan

Export Markets Key to UK Pork Industry Added Value

Need to ensure Government/DEFRA well briefed on key issues –political and technical aspects

Ongoing work with DEFRA, AHDB, BMPA etc. to access markets

Trotters to China value ~£7.5 million a year for the British pork industry

We will need to seize opportunities to show case our product abroad, both process and product quality will be key to securing such business for the long term though

Pork shortage which will be filled by reduced exports from China and increased imports

Seize The Opportunity When It Arises

Q: “ What is your most important priority when choosing the food you buy?”

Know Your Market…

Summary

Consumption changing: Fresh Meat Value Added Meat and Meal Solutions

Consumer buying behaviour influenced by: Health, Environment, Lifestyle and Sourcing

• Consumers are Innovate, Innovate, Innovate = NPD

Be proud of what WE do well: Differentiation, Higher Production Standards, High Health and Biosecurity

Continued growth of the Discounters and influence of Technology/Digital on sales

Ability to Competitively Export will be Key

Pig Opportunities for Production Partnerships with BQP Part of Tulip Ltd

BQP are looking for new partners to work with us to meet the growing demand for higher welfare pig production

Come and talk to us for further details: 01379 383100

“Seize the Opportunities”

Take Home Message:

Tulip High Welfare Production

Tulip Breeding Farmhttps://www.youtube.com/watch?v=jNx5P-oSwXg&feature=youtu.be

Tulip Grower farm https://www.youtube.com/watch?v=3O2jJmrsFaE&feature=youtu.be

Tulip High Welfare Production

Tulip Breeding Farmhttps://www.youtube.com/watch?v=jNx5P-oSwXg&feature=youtu.be

Tulip Grower farm https://www.youtube.com/watch?v=3O2jJmrsFaE&feature=youtu.be