The Middle East’s poultry industry has become adept at overcoming the challenges of the region’s particular set of circumstances. However, with local demand for poultry meat forecast to grow significantly, producers will need to become even more skilled at handling crises if they are to respond to this growing demand for chicken.
Overcoming these challenges was the focus of the Middle East's first Poultry Marketing Round Table, organized by Middle East Agrifood Publishers (MEAP), WATT Global Media and VIV, held at VIV MEA in late November last year.
Chairing the event, Ghassan Sayegh, general manager of Middle East Agrifood Publishers (MEAP), welcomed the host of honor, His Excellency Sheikh Hamed bin Khadim bin Butti Al Hamed, and noted that what is key to survival is a healthy economy and looking after the small poultry producer.
The first Poultry Marketing RoundTable held at VIV MEA 2021 saw speakers and attendees participate in person and remotely. (Courtesy VIV)
How to achieve this, however, in a region living through continuous difficulties is not straightforward.
For example, should investments be made during a period of crisis? The question was raised by independent researcher on food security Nadim Khouri, who went on to examine where finances might be found if the decision is taken that investments should, indeed, be made.
Where food security is concerned, should the region foster small producers even in the face of disruptions and other threats, or are the risks too great, and security better achieved through import? Attendees believed the former would be the better approach, making resilience to crises all the more important.
Tony Freijeh, CEO of Egyptian agribusiness company Al Wadi Group, noted that the region had experienced numerous crises from war to disease, but that his company had ensured that it was not consumed by them.
“In our company, we have a robust crisis mitigation department. Without one, you are lost,” he said.
To survive, producers must be able to pass costs on to consumers, he continued, adding that managing a crisis was a science and an art.
“In a crisis,” he said, “you don’t always go with the flow. Sometimes, you bend with the wind, while at others you stand firm against the storm.”
He went on to stress the importance of reading a crisis’ signs and the numbers. “You must analyze the crisis. Every crisis eventually goes away and, whatever the situation, there is always an opportunity.”
People must like you
William Boutros, president of the Syndicate of Lebanese Poultry Producers and co-owner of Lebanese poultry company Wilco, noted that, where crisis survival is concerned, cost control and inventory were essential, while capital expenditure must be kept to a minimum.
To further ensure continued business success, stakeholders and governments must be constantly engaged, there must be active public relations campaigns and businesses must constantly strive to ensure staff retention.
To protect themselves locally, Boutros continued, companies “must implement strong social responsibility policies and engage in social activities.”
He continued: “People must like you so that if a crisis occurs, they do not attack your facilities.”
According to Boutros, the region’s current difficulties can be attributed to there no longer being a single, dominant global power.
This, he continued, is impacting free trade, which is no longer being conducted in the interests of all. Regional players are trying to be more assertive, leading to constant instability.
In the face of competition
Returning to the topic of self-sufficiency, Sayegh asked how the region could meet its needs when competition from overseas was so strong.
Nan-Dirk Mulder, senior analyst, animal protein with Rabobank, responded that some of the region’s governments were already engaged in achieving self-sufficiency.
While it remains a challenge, he continued, governments have supported the import of feed, for example, and entered into joint government/private approaches to move toward self-sufficiency. However, he continued, there needs to be a plan with targets if this approach is to be a success.
Boutros stressed that the region needs to work together in this regard, and that there needs to be greater co-operation between countries and industries. This co-operation needs to be throughout the supply chain, Sayegh noted, because if one element is missing there can never be true self-sufficiency.
Co-operation needs to occur not only between countries but between producers within individual countries. Khouri noted that the World Bank, for example, encourages processors to actively work with small-scale producers.
MENA: Region of growth
Poultry production in the Middle East and North Africa (MENA) is forecast to grow by 40% over the next decade, according to Rabobank’s Nan-Dirk Mulder, and between 2020 and 2030, MENA’s demand for poultry meat is expected to increase by 35%, while that for eggs will rise by 28%.
The region’s recovery from COVID-19 is expected to be bumpy, however, with inflation risks and supply challenges but, long term, the demand for poultry meat is expected to grow quickly. The market is undergoing rapid change, with distribution, for example, modernizing and moving online, while supply chains are becoming digital and smart.
Food security in the region is rising. Saudi Arabia, for example, which was 35% self sufficient for poultry meat in 2015, is aiming to be 85% self-sufficient by 2025.
Organizational crisis management
In the midst of every crisis lies great opportunity, said Kate Hartley, co-founder of crisis simulation training consultancy Polpeo and author of "Communicate in a Crisis: Understand, Engage and Influence Consumer Behaviour to Maximize Brand Trust."
What might trigger a crisis?
Broadly, she noted, psychologists say that there are five things that an organization might do to trigger negative behavior from people.
The first is that it might hit at our core beliefs and values -- the things that we passionately believe in. Secondly, it may attack our social norms -- what our wider network says is OK. It might take away our control, or it might hurt someone that we relate to and, lastly, the public may turn on an organization acting against its own ethics.
Understanding this can help to prevent a crisis occurring in the first place, she noted.
Hartley posed the question of whether a gap may exist between what an organization says and what it does - a disconnect between what people want or expect from an organization and what it does. That dissonance creates a sense of betrayal, and this is when people turn on organizations.
Managing the crisis
Work should start before a crisis hits. There needs to be scenario planning, and identification which are the big issues that could disrupt the business.
Good crisis management needs good leadership to steer the organization through the crisis. The most important thing that a leader can do in a crisis is to make difficult decisions -- often without all the facts.
The leader should bring clarity to chaos, set the course for recovery and, of course, lead by example. Before any of this, however, the leader must define strategic intent.
Where should the business be in six months’ time? What should people be saying about it and its response to the crisis?
This can be formulated by writing out a single, simple sentence detailing the desired outcome, and this will focus efforts and make decision-making easier. Decisions can be evaluated against intent. Teams will know what to do if they know what they must achieve.
When the intent is established, the crisis can be tackled.
There are various core principles for crisis communication. Companies must always, for example, act in line with their values and always tell the truth; nothing should be covered up. Regular updates on what is happening and what is being done to fix problem are essential.
Building trust must be central, and this takes action, not simply words.
Rebuilding trust
Once a crisis is over, the hard work really begins.
Recovery is about building trust. You must understand what has happened to stop it from happening again, publicly facing up to the issues, explaining what happened and tackling the root cause.
It is important to make amends. This might be through a public apology, accepting punishment or a fine, or offering compensation. Being seen to be adopting high standards and in accordance with rules and regulations will also go a long way to rebuild trust.
Building an ethical culture is also important. This can make employee misdemeanors less likely to occur, and easier to fix should they happen. A company may also associate with a trusted figure or institution, which can help to restore its credibility.
To learn more about crisis management, visit: https://polpeo.com
