📰3 relevant stories in our Industry

​Denmark Introduces First Carbon Emission Tax for Agriculture​

The Ministry of Green Tripartite, Denmark. 18/11/2024.

Denmark's groundbreaking agreement reshapes its agricultural and environmental landscape with the world's first CO2 tax on livestock emissions.

Key Points:

• A budget of DKK 43 billion will support a radical transformation, converting 10% of Denmark's land area into nature and forest.
• 250,000 hectares of new forest and 140,000 hectares of lowland soil will be rewilded to reduce climate impact.
• Estimated reduction of up to 2.6 million tons of CO2 by 2030 through these initiatives.
• EUR 1.34 billion invested in pyrolysis technology and climate-friendly practices to sustain competitive agriculture.
• Funds allocated to promote plant-based foods and organic farming.

Laura's POV: This policy sets a precedent for integrating sustainability into agriculture. Businesses reliant on livestock must prepare for cost implications of CO2 taxation and explore opportunities in plant-based and organic sectors to adapt to shifting market demands.

​Brazil and China Near Agreement over Pork Offals

Swineweb (/11/2024)

Ukraine is pursuing approval to export meat products to China, potentially opening a significant new market for Ukrainian producers.

Key Points:

• Ukraine's move to export meat to China could introduce new competition in the Asian market for established exporters.
• The potential trade deal highlights Ukraine's efforts to diversify its export markets beyond traditional partners.
• Approval would likely lead to increased investment in Ukraine's meat production and processing capabilities.

Laura's POV: This deal highlights the growing importance of niche products like offal in global trade. Meat traders should monitor how this agreement shifts market dynamics, particularly in China, and consider diversifying product portfolios to capitalize on emerging opportunities in specialty meat categories.

I write more about who will suffer the consequencies in Meat Trading Hub Linkedin Page. Click here.

​Carrefour vs Mercosur: Trade Tensions Ignite Blacklash in Brazil

Yahoo Finance (25/11/2024)

Carrefour’s CEO Alexandre Bompard has taken a firm stand against the EU-Mercosur trade deal, refusing to source meat from Mercosur countries. This decision, backed by France's President Macron, aims to protect local farmers and uphold quality standards. However, it has sparked significant backlash from Brazil, one of Mercosur’s key players and a global meat powerhouse.

Key Points:

• Carrefour's Commitment: The retailer pledges not to sell meat from Mercosur countries in solidarity with French farmers, also targeting processed dishes in its private labels.
• Brazil Fights Back: Brazilian meat giants like JBS have stopped supplying Carrefour locally. Brazil's Agriculture Ministry strongly defends the quality and sustainability of its products.
• Trade Ripple Effects: Industry groups argue that if Mercosur meat isn’t good for France, it shouldn’t supply Carrefour in any other country.
• Deal Delays: The EU-Mercosur trade agreement, under negotiation since 1999, faces another roadblock, complicating tariff cuts and trade expansions.

Laura's POV: This conflict reveals the fragility of global meat trade partnerships. Carrefour’s position reflects increasing protectionism, while Brazil’s countermeasures show just how quickly supply chains can shift. For traders, this is a warning to diversify markets and maintain flexibility to navigate geopolitical and corporate tensions. Opportunities may arise from new alignments, but staying informed and agile is key to thriving in this volatile environment.

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🥩The Surprising Efficiency of B&B Contracts in Pig Finishing. Why it matters?

Even if you’re not in the pig industry, you’ll want to know about B&B contracts (Bed and Breakfast contracts) and how they’re reshaping operations and profits for facility owners and producers alike. This model has valuable insights for any business managing shared resources and rising operational costs, especially with today’s volatile energy prices.

Here’s a breakdown of how B&B contracts work, why energy costs are a big factor, and how strategic cost management can protect profits across industries.

What Are B&B Contracts?

B&B contracts offer a strategic way to share responsibilities in the pig finishing industry. The facility owner handles housing, daily care, and management, while the pig owner provides the pigs and covers feed and health inputs. Here’s the structure:

• Shared Responsibilities: Facility owners provide housing and management; pig owners supply the pigs and bear feed costs.
• Compensation Model: Facility owners receive fixed payments per pig or space, with added incentives based on factors like growth rates and feed efficiency.
• Risk and Reward: Pig owners handle market risks while facility owners enjoy a steady income, without taking on the sales side of the business.

This arrangement lets pig owners focus on production, leaving facilities to those set up for it; an efficient model that benefits both parties.

Why Energy Costs Are Squeezing Profits in B&B Contracts

With the spike in energy prices, especially in hot seasons, managing finishing house costs has become crucial. Many farmers in B&B contracts are finding that while they receive a set payment per pig place, rising electricity costs are eating into their profits. Ventilation, lighting, feed distribution, and cleaning all add up, making energy management essential.

5 Smart Ways to Manage Finishing House Costs

1. Understand Your True Operating Costs​
   Many farmers track feed and growth rates but overlook electricity and operational costs in calculations, which can lead to unexpected profit losses. Knowing these costs inside-out is key to maximizing B&B contract benefits.
2. Optimize Fan Usage for Significant Energy Savings​
   Staged fan control is a major way to cut down on costs. By running fewer fans at full speed rather than all fans at low speed, farms achieve the needed ventilation at a lower energy cost. This simple change can save up to 8 kWh per pig place annually, cutting up to £3,500 in energy costs.
3. Implement Seasonal Ventilation Programs​
   Advanced systems like the Farmex Dicam optimize ventilation based on external temperatures. In summer, they increase airflow to maintain a comfortable environment, while in winter, they keep warmth in to reduce energy costs. Seasonal adjustments not only save money but also extend the life of equipment by reducing strain.
4. Upgrade Lighting Efficiency​
   While a smaller cost factor, lighting can still make a difference. Automated lighting systems that adjust based on activity and time of day can cut energy use. This helps finishing houses save costs in areas often overlooked, especially in larger facilities.
5. Monitor Seasonal Cost Variances​
   Energy costs vary throughout the year, with ventilation needs changing by season. For instance, a 2,000-pig finishing house incurs about £9,686–£10,560 annually in electricity costs, with fans consuming 75% of this. Knowing these seasonal patterns allows for better planning and helps farmers anticipate and manage costs.

Why It Matters for Every Business

While B&B contracts are unique to pig finishing, the lessons in operational efficiency apply to any industry. Rising energy prices impact everyone. By adopting a focused approach to cost management—whether through adjusting ventilation, lighting, or other operational components—businesses can protect profitability in unpredictable environments.

So, whether you’re in farming or any other sector, understanding models like B&B contracts and strategic cost-cutting approaches could someday save you money. Consider how these principles might apply to your own operations and start building a resilient, cost-effective business that can weather any market changes.

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🫶Why Duroc Pork is the Benchmark for Premium Meat

At Meat Trading Hub, we know the devil is in the details when it comes to premium pork. Duroc pork—whether 100% pure or 50% crossbred—offers unique characteristics that cater to different markets and preferences.

Understanding these distinctions can make all the difference in your product selection, whether you’re sourcing for gourmet retailers, food service, or further processing.

The Genetics Behind Duroc

Duroc pork owes its reputation to its genetics, which significantly influences marbling, flavor, and texture.

Here’s a closer look:

100% Duroc

• Features evenly distributed intramuscular fat, ensuring consistent marbling throughout.
• Produces meat with a nuanced, complex flavor prized by gourmet markets.
• Typically has slower growth rates but achieves better feed efficiency, leading to superior quality.
• High stress resistance, reducing the risk of PSE (pale, soft, exudative) meat.
• Offers uniform carcass characteristics, perfect for precision cutting and premium cuts.

50% Duroc

• A robust flavor profile that some consumers prefer for its intensity.
• May exhibit hybrid vigor, leading to faster growth rates and adaptability to intensive farming.
• Larger pockets of fat create unique textures that work well in processed products like sausages.
• Carcasses often yield larger overall sizes, suitable for bulk markets or specific cuts.

Why Marbling Matters

The hallmark of Duroc pork is its marbling—intramuscular fat that enhances tenderness, juiciness, and flavor.

Here's how Duroc stacks up:

1. Superior Marbling:
   • 100% Duroc pork delivers even marbling throughout, providing consistent cooking results.
   • Studies show higher marbling scores in Duroc compared to breeds like Landrace or Yorkshire.
2. Tenderness & Flavor:
   • Increased marbling translates to meat that’s naturally juicy and tender.
   • Duroc’s marbling rivals that of Iberian pork, though with slightly less overall fat.
3. Quality Across Breeds:
   • Duroc is often crossbred with other lines to enhance marbling in commercial pork.
   • This genetic advantage is why Duroc pork remains a favorite in premium markets.

Key Differences Between 100% and 50% Duroc Pork

For easy reference, here’s a breakdown of how the two compare:

A Side-by-Side with Other Breeds

• Compared to Iberian Pork:
  • Duroc has comparable marbling but slightly less fat.
  • Duroc is the ONLY crossbreed allowed under Iberian pork standards due to its similar quality.
• Compared to White Pig Breeds (e.g., Landrace, Yorkshire):
  • Duroc far exceeds in marbling, tenderness, and flavor.
  • Frequently crossbred with these breeds to improve commercial pork lines.

Why this is important...

Understanding the nuances between 100% and 50% Duroc pork helps you make better choices for your business. Whether you’re targeting high-end markets with pure Duroc or looking for versatile, cost-effective options with 50% Duroc, there’s a solution for every need.

It's true that finding 100% Duroc requires more specialized care and attention to thrive, making it challenging to use it for big-scale operations.Therefore, 50% Duroc is often the preferred choice for large-scale operations. It combines the robust traits of Duroc genetics, such as marbling and flavor, with the adaptability and efficiency of crossbreeding. This balance makes it easier to manage, more cost-effective, and better suited for meeting the demands of high-volume production while still delivering a superior eating experience.

At Meat Trading Hub, we connect you with the right products to elevate your offerings. Let’s make premium pork work for you.

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📢 Our WhatsApp Group

In the WhatsApp Group, I usually send some news that I find relevant or Meat Market Updates like the one below or news that gets my attention and is relevant to our industry.

Example:

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👀Did you know...?🔍

The Asia-Pacific agrifoodtech sector has made a remarkable recovery in 2024, raising $4.2 billion so far—a 38% year-over-year increase! This isn’t just a rebound; it’s a signal that APAC is becoming a powerhouse in global agrifood innovation.

Here are some standout facts to chew on:

• India leads the charge, raising $2 billion, nearly half of the region’s total. A big contributor? eGrocery platform Zepto, which secured $1 billion in late-stage funding.
• China isn’t far behind, with an 18% increase in funding and heavy activity in Ag Biotech, which grew 30% year-over-year.
• Japan is climbing fast, posting a 58% increase in funding and moving into the top three APAC agrifoodtech hubs.

Where’s the money going?

• eGrocery reigns supreme, raking in $1.5 billion—thanks in part to renewed enthusiasm in India and China.
• Ag Biotech is booming, attracting $459 million as innovation in food science accelerates.
• Midstream Technologies saw an 88% funding increase, highlighting a focus on efficient supply chains.

And here’s a kicker for late-stage deals: Funding jumped 133%, with double the deals compared to last year. Clearly, investors are betting big on scalable solutions.

Why Should You Care?

For those of us in the meat trading and F&B sectors, these numbers highlight some juicy opportunities:

• eGrocery platforms could be a gateway to new distribution channels in India and China.
• Innovations in supply chain tech might revolutionize how we move perishable goods like meat.
• Sustainability trends in Bioenergy could align with consumer preferences, creating new packaging or production possibilities.

The APAC region is proving that agrifoodtech isn’t just bouncing back—it’s setting the stage for the future of food. What does this mean for your business?

For Report go here​

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Warm regards, Laura.