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Alltech’s 2021 Agri-Food outlook - five trends
ALLTECH’S 2021 Agri- Food Outlook focusses on trends that largely re- sulted from limitations due to the COVID-19 pandemic.
market demand for poultry recovered steadily, and the supply is growing rapidly,” Ms Jia said.
were purchasing.”
“It’s important to con-
“A comprehensive and easy-to-understand pri- vacy policy, partnership badge, contact informa- tion and social proof are great ways to build trust and credibility.
selenium-enriched eggs or DHA-enriched milk, to give them a greater sense of control over their health and well-being.”
Innovation
– not just diversity goals. “We talk about diversity, we talk about equity, but inclusion is much stronger
While China’s quick re- bound back to its place as the world’s largest feed producer is Alltech’s top story of its 2021 Agri- Food Outlook, other in- dustry trends stem pri- marily from the global coronavirus event.
“We expect there will be more investment in the breeding program of beef cattle and sheep this year,” she said.
“If we don’t know the source, if we don’t know where that feed product is coming from, or where that animal is coming from, and then be able to track that through the supply chain, we can’t tell an authentic story to the consumer about that product,” Ms Britton said.
“Personalisation, excep- tional customer service and one-to-one relation- ship will help build trust with your customers.”
“Innovation is fuelled by cultures of collabo- ration where there’s an openness to every idea, where every person can be seen, heard and valued for their contributions,” Dr Lyons said.
The occurrences of the past year caused a shift in supply chains to trust- based transactions, saw the rise of ecommerce, made health a consumer priority and created in- novation through empathy and inclusion.
Shifts in supply chain
Health became an even greater priority for con- sumers in 2020, “strength- ening a trend that was already underway,” Mr Lyons said.
“There’s never been more pressure on busi- nesses, nor has there ever been more opportunity.”
port inclusion by having a clear mission and pur- pose, showing empathy, understanding that every employee brings unique experiences, and having an inclusive culture.”
Alltech highlighted these five trends in its 2021 Agri-Food Outlook, presented in a virtual event on January 26.
“After six years of abun- dant global grain supplies and relatively stable com- modity markets, we have now entered a period of tightening supplies and strong demand, resulting in a 57 percent increase in corn prices and a 52 per- cent increase in soybean meal prices during the past five months,” he said.
Now that consumers have become accustomed to ordering more things online, companies need to build on the trust that has been created and build their brands.
“This trend will have major implications for the food supply chain.”
China
Alltech digital mar- keting manager Anand Iyer said, “Nobody wants to buy from a brand they don’t know about.”
Alltech director of Acutia and human nutrition initia- tives Nikki Putnam Bad- ding said fear and func- tionality are drivers of health purchases.
China’s pig herd was decimated over the past two years, as African swine fever spread quickly throughout the country.
“Quality of the product, traceability – these are all things brands need to con- sider,” he said, adding that there were several things companies can do to build a good rapport with cus- tomers.
“Fear has always been a purchase driver in the health space,” she said.
But in 2020, China saw a faster-than-expected re- covery.
Alltech global pur- chasing and supply chain director Eric Glenn said, “These are price levels that we haven’t seen since 2014.”
“Over the past 10 years, we’ve seen health-con- scious consumers turn to functional foods, or foods with health benefits above and beyond the norm, like
Alltech president of Asia Jonathan Forrest Wilson said: “The swine market in China came back faster than anyone would have expected.”
“Premix companies are also telling me that logis- tics remain a concern for shipments out of China, that there is a lot of con- gestion at import ports and that truck freight within local markets has been tight.
In the ruminant market, “feed costs are rising, and overcapacity and bi- osafety are still the three main challenges for the whole industry.”
sumers that food compa- nies tell an “accurate, au- thentic story about food.
Reinforcing previously mentioned trends, she said trust and transparency are becoming more important for consumers, who tra- ditionally base their food purchases on price, taste, familiarity and health.
Businesses face the challenge and opportunity of using empathy and in- clusion to drive innova- tion and collaboration.
than anything,” she said. “Diversity is the traits and characteristics that make people unique, but inclusion refers to the be- haviours and social norms that ensure people feel welcome and comfortable to be part of something
Global food supply chains faced great chal- lenges due to the pan- demic, but remained strong, Mr Lyons said, adding that the past year has created demand for more trust and transpar- ency from food producers.
Ecommerce
Ecommerce exploded in 2020 as a result of lock- downs and stay-at-home orders related to the pan- demic.
“We started to seek out health-boosting foods, and even as restrictions lifted, these new, healthier habits continued.
Alltech Mexico general manager Bianca Martins said companies should have inclusion programs
Health
“But gaining in popu- larity is the review and consideration of the entire product life cycle, from welfare to supply chain transparency to brand alignment with personal values,” Ms Putnam Bad- ding said.
really important.” “Companies can sup-
According to Alltech China director of cus- tomer experience Winnie Jia, China’s pig produc- tion capacity has recov- ered to 90 percent of its 2017 numbers and growth is expected to continue.
“This has led to higher prices for vitamins and amino acids that many people expect will con- tinue into the second quarter.
Alltech president and chief executive officer Mark Lyons said, “China has exceeded expecta- tions, with an incredible rebound in 2020.”
“Amino acids such as lysine and methionine are also expected to be in strong demand as commodities like soy- bean meal and corn have increased in price,” Mr Glenn said.
“It has resumed the position as the No. 1 feed-producing country, and it started 2021 with strength.”
Mr Wilson said the industry had largely re- structured, with back- yard farms replaced with modern, large-scale facili- ties.
While food producers face those challenges, IMI Global senior director of operations Kathryn Britton said they also must realise consumers’ growing desire for more transparency in food and livestock production.
“The reduction in backyard farms really increased the need for modern compound feeds.”
“Waste that was previ- ously fed to pigs is no longer an acceptable feed- stock,” he said.
“Because we’re able, as an industry, to have a story about food production and translate that through the supply chain, consumers were able to continue to trust in the food that they
Poultry prices in China improved slightly in the second half of 2020, “but performance continued to be weak and the world
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