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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
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