At the prestigious Anuga food fair in Cologne, companies pull out all the stops to leave a good impression on visitors. This year, food companies mainly want to profile themselves on plant-based, organic, taste and experience. Laziness also plays a major role. In many markets it is still a matter of finding a direction in which direction the price will go. Boerenbusiness was at the fair and reports.
A little stand on the Anuga can easily cost €100.000 if you also include the other costs, according to a meat exporter. It is of course impossible to earn this amount back in five days, but he believes the fair is a unique opportunity to present yourself to, for example, buyers from large (supermarket) organizations from many countries. "That's why we like being here." Visitor numbers are estimated to reach 200.000 this year. In other years, more than 80% were often buyers, or something along those lines. A Dutch dairy trading company states that it deliberately did not book a stand because the benefits do not outweigh the costs. The idea is that you can also do plenty of business here as a visitor.
Experience and business
The fair is neatly divided by food category. A separate hall for dairy, bread products, organic and no fewer than three halls for meat companies. Ironically, plant-based meat alternatives sometimes almost dominate here. Companies such as the Vegetarian Butcher and Beyond Meat are going big and would like to introduce everyone to their burgers, which they believe are at least as good as the traditional hamburger. These types of companies have now become fully established among the major players in the meat industry. Beyond Meat even presents their products in two large stands at the fair. In addition, the exhibition floor is filled with all kinds of small companies that offer strikingly similar products, a clear parallel with the meat market. Although the question is whether the market is large enough to absorb the products of so many players. Many larger meat companies now have a number of vegetarian products themselves. However, the products are displayed less lavishly than at other fairs this year such as PLM.
Looking for rapid growth
Anyone who thinks that plant-based meat substitutes are only consumed in the rich West is wrong. Companies from Thailand and Hong Kong, among others, also present all kinds of products in the hope of success in Europe. It is striking that companies specialized in meat substitutes are focusing on the East Asian markets. Now that many Western core markets are in shambles, the industry appears to be looking for a new market where rapid growth is possible. It therefore appears that the sector has given up trying to convince the average consumer in established markets and is looking for new opportunities to acquire a comparable niche position in unexplored markets.
Spanish charcuterie makers at the fair often want to know little about plant-based products. They stick to the Iberico pig, which they believe cannot be matched in terms of taste. They will expertly demonstrate in their stand how to fillet and prepare hams. Of course, the fair is not a cooking demonstration, but is about doing business. However, experience does play a major role, also in packaging material, for example. Preferably recyclable, because that is what buyers select for.
Tension in the meat markets
In the meat markets you notice that there is tension. Prices of pork, beef and chicken rose to record highs in 2022 and early 2023, driving food inflation. However, in recent months, sentiment in the markets has turned considerably and prices are under pressure. A trader in beef parts attributes this to a drop in demand among consumers who are more price-conscious. "The meat shreds yield €1 per kilo less than last year. The luxury parts have fallen even faster in price," he says.
Buyers are generally cautious now that the markets are under pressure. Slaughterhouses see stocks increasing as a result, but are not happy about it. "Due to the high energy costs, freezing has become far too expensive," sighs a salesperson from a Dutch pig slaughterhouse. Meanwhile, the major German slaughterhouses are complaining about a pig shortage. According to them, the phase in which consumers are looking for cheaper alternatives is definitely over. Many consumers are now choosing to reduce their portions, while slaughter prices can only be reduced to a limited extent due to the low supply. "The next 12 to 24 months will therefore be very difficult," says a salesman from a large German slaughterhouse.
Brand thinking in the dairy sector
Plant-based alternatives cannot be overlooked in the dairy hall either. The established order is also making a big deal out of it. A large German dairy cooperative hands out plant-based chocolate mousse to your heart's content, which incidentally tastes great. "If you walk here, you would almost think that half of the dairy market is now plant-based, but nothing could be further from the truth. After the hype, we actually notice that there is no stretch," a Belgian private milk processor soberingly notes. Yet there are few dairy companies without milk alternatives in their range. On the Anuga, dairy companies also try to do everything they can not to be associated with bulk. This should prevent them from being interchangeable. Brand thinking in the dairy sector has increased significantly.
Just like the meat markets, sentiment on the dairy markets is also different. Many prices and quotations have fallen sharply in recent months. In the meantime, the bottom seems to have been reached in the market and prices are climbing again. However, the direction in the market is not convincing. The exhibition floor offers buyers and sellers the ideal opportunity to taste each other's talents. Most contracts have been concluded for the remainder of 2023. In the meantime, careful consideration is being given to the direction of the dairy markets for 2024, but these remain largely shrouded in mystery during the Anuga. The tone does appear to be more bullish than bearish, but this could easily change tomorrow.
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