COVID-19 changed the world overnight. What will the poultry industry look like post-pandemic?
“We can learn a lot from what’s gone on in the last few months, but we should keep in mind that change is inevitable.” Justin Sherrard, Global Strategist Animal Protein, Rabobank, said May 26 during a webinar sponsored by the International Poultry Council. “In such complicated times, it really tests our optimism in terms of the market.”
Sherrard shared four main areas of opportunity and risk along poultry supply chains post-COVID-19.
Consumer engagement
Communication – and responsiveness – is key to engaging with all consumers. Consumer trends in the poultry market are constantly changing and it’s more important than ever to keep up.
“Consumer preferences have just changed again. It’s incredibly important to understand what customers want. But we need to get used to responding quickly to the way that their preferences are changing,” he said.
Connected supply chains
“Digitalization can help us improve the connectivity of supply chains, but the most important thing is how responsive our supply chains are,” Sherrard explained.
Direct-to-consumer (DTC) is an option many suppliers are considering as a way to offer convenience to consumers. Earlier this year, Perdue Farms launched a new website that allowed customers to order the brand’s frozen meat products themselves.
Interest in DTC was already growing pre-pandemic. Only 1.4% of consumers had used DTC once in the last 12 months for food or drink in 2014. That number rose to 5.8% in 2018, according to Global Data, an analytics and consulting company.
“Lots of people are thinking about how they can shrink the supply chain and go direct to consumers,” Sherrard said.
Trade
For the past two years, China has struggled with African swine fever (ASF), a disease that has created a shortfall of animal protein in the country.
“China has become a kingmaker in the global animal protein trade. As a result, the whole world now becomes very dependent on what China is doing in terms of creating balance in the market,” he explained.
Trust
The modern consumer wants to purchase from brands they trust. In a recent survey from Cone Communications, nearly 90% of people indicated they have chosen to purchase a product because it is from a company they trust.
“I invite everyone to think more deeply about trust. What steps do we need to take to reassure consumers that the poultry they eat is safe, well-looked after and nutritious? These times of uncertainty really create a demand for trust,” Sherrard concluded. “As an industry, we really have a great opportunity to build trust.”
View our continuing coverage of the coronavirus/COVID-19 pandemic.
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