Media reports of poultry and meat plant closures during COVID-19 have made consumers nervous about food safety. Chicken brands should make rebuilding trust a priority, said Christine McCracken, Senior Analyst – Animal Protein at Rabobank.
McCracken spoke about how the pandemic affected on the global chicken market on June 12 as part of the USA Poultry & Egg Export Council’s (USAPEEC) 2020 Virtual Annual Meeting.
Consumers want to buy from brands they trust. They don’t just buy products, they invest in relationships with companies.
“Consumer trust has obviously been damaged in the U.S. and other countries around the world. The industry has been in the news a lot with all the plant closures. Finding ways to build consumer trust should really be top of mind for the poultry industry and throughout the supply chain as we try to reestablish our reputation,” she explained.
“I think that COVID-19 has really shown the importance of aligning your brands with core customers that have the route to the consumer. It’s become obvious that key customer relationships are very important.”
Other ways to adapt post-pandemic
McCracken also discussed two other ways chicken brands should be adapting post-pandemic.
The first, she said, was cost structure. Brands should be finding ways to offset incremental costs incurred during COVID-19, such as personal protective equipment, and focus on ways to streamline operation, cut costs and preserve capital.
Brands also need to be nimble and ask themselves how they can be flexible and adapt to challenging environments, she explained.
“Obviously, the short-term disruptions from COVID-19 and its economic impact will have a huge impact on the poultry market. Generally, poultry tends to do very well in a downturn. Historically, we have seen sustained demand for poultry, but with price increases,” McCracken said.
For more on the ways chicken brands can adapt during turbulent times, register for How storytelling can grow a chicken brand during transition. The webinar, sponsored by Zoetis, is June 24 at 10:00 a.m. CDT.
View our continuing coverage of the coronavirus/COVID-19 pandemic.
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