Frozen meat imports rising - ASIAN MEAT - Asian Agribiz
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SECTOR REPORT – FROZEN
Vietnamese consumers are being encouraged
to shift from fresh to frozen meat.
Frozen meat
imports rising
ASIAN MEAT
Traditionally the mainstay of
food manufacturing, other
segments have over time taken
M A G A Z I N E
to frozen meat. ISA Q TAN and
the Asian Agribiz team look at
the latest developments in the
frozen meat subsector across
various Asian markets, and
assess what is in store for the
coming year.
14 ASIAN MEAT MAGAZINE – January/February 2020
Vietnam pork imports climb consumers to switch to other proteins Meat imports up in
and frozen meat. But while demand the Philippines
One of the world’s biggest producers for the likes of chicken, duck and fish
and consumers of pork, Vietnam has have grown, the shift has still been In the Philippines, data from the
been watching its output drop as its slow. Bureau of Animal Industry show that
pig industry battles ASF. As a result, it Vietnamese eat an average 33kg of total meat imports are up 2.8% on
has turned to imports to fill the gap. pork per year, accounting for 65% of the year, to about 613,000 tons in
According to Ho Chi Minh City’s their total meat consumption. At that the first nine months of 2019.
Customs Department, the city’s pork rate, replacing pork with other meats Pork accounted for about 42% of
imports jumped 155% in volume will not be easy. the total, followed by chicken (37%),
and 154% in value last October, “People will always go back to beef (17%) and carabeef (4%).
compared to the previous year. pork, even when the price increases," Moreover, beef and chicken volumes
Frozen pork imports are mainly Nguyen Tri Cong, Chairman of Dong grew 19% and 12% from the year
used by meat processors, street Nai Livestock Production Association, before, while carabeef and pork
restaurants and institutional kitchens. told Asian Meat Magazine. imports fell 22% and 8%.
Brazil is the top supplier, accounting For now, pork prices will continue to Jesus Cham, President of the Meat
for over half of total import volume, rise, at least until the second half of Importers and Traders Association,
followed by Poland, the US, Belgium this year, he said, adding that it would told Asian Meat Magazine that
and Spain. take at least 3-5 years for the pig the bulk of imports go to the meat
Though these countries have industry to start restocking. Recovery processing sector. Mechanically
traditionally imported the most pork, may take even longer. deboned chicken meat, which
supplies have been difficult to come accounts for up to 70% of overall
by over the past few months due to Meat protein options chicken imports, is
competition from China. a key raw material
Gordon Butland, Director of G&S
“China’s meat demand is much for processors.
Agriconsultants, predicts that what
larger than Vietnam’s, and buyers The same is true
has been happening in China will
there offer a higher purchase for fats, offal, and
replay in Vietnam, which already saw
price. This makes it difficult to skin and rinds.
a “strong price reaction in mid-2019”.
find suppliers for Vietnam at this “You need
Consumers will continue to shift to
time,” Joachim Breton, Business to make a
broiler, fish and eggs.
Development Director of World Wide distinction. Local
“In the long term, there will be a
Food Distributions, told Asian Meat meat producers
permanent increased demand for
Magazine. think we, the legal
all other varieties, including beef Jesus Cham
“Pork prices in Vietnam will increase importers, are
and sheep meat. No imports can
at least 30% soon and suppliers will competing against
fill the gap in supply in 2021 when
then reorder based on their priorities,” them, but that is not the case. We are
consumption could bottom out,” he
he added. serving the segments that they don’t
said.
Pork hangs on
To take pressure off its pig industry
and keep prices in check, Vietnamese
authorities have been encouraging
While most of the Philippines’ meat imports are used for
processing, some meat types, like premium beef cuts, are
sold in retail shops.
ASIAN MEAT MAGAZINE – January/February 2020 15
serve,” he said. currently stand at 40% for chicken, by ASF, demand for pork is down
While there may be some 30% for pork and 10% for beef. It and up for chicken. However, most
overlaps, these are very small. Some has done this at previous times of industry stakeholders feel this will
of the imported edible pork offal is meat scarcity to bring back some be temporary and that once issues
consumed by lower-income classes, stability to the market. related to ASF is addressed, pork
which make up about 85% of the demand will rise again.
Price dictates
population. Mr Cham said that Philippine meat
With the country’s pig industry hit demand is determined more by price
Sourcing difficulties
Traditionally, the Philippines
sources most of its meat from North GEA spiral freezer at home in SE Asia
America, Australasia and Western
Europe, with small supplies from Since its launch in Southeast
Brazil and Argentina. Carabeef Asia last June, GEA’s S-Tec
comes exclusively from India. spiral freezer has made
significant market share
Like Vietnam, the country is
gains.
feeling the pinch from the impact The S-Tec spiral freezer,
of ASF, which has made China a which features the
formidable competitor, not only for Callifreeze control system,
pork imports but for other meat is designed for a wide range
types as well. of meat, poultry and fish,
“The Philippines is price sensitive,” as well as bakery, dairy
noted Mr Cham. “Because of ASF, products and ready meals.
prices in the global market have It has a capacity of up to
gone up by as much as 50%, so it 6000 kg/hour and promises
efficient airflow and a The S-Tec spiral freezer, with Callifreeze, provides
is a price game. Our traditional meat continuous control of the frozenness of food products.
hygienic design.
suppliers prefer to sell to China,
which is willing to pay higher prices. Unique control system
So for us, supplies are drying up.”
Callifreeze is the award-winning, continuous freezer control system that has
If global prices continue to rise,
been proven to reduce energy consumption, improve product quality and reduce
he said he hopes the government wastage by automatically controlling and monitoring the level of frozenness (LOF)
will try to mitigate their effect by of products at the freezer exit.
lowering import duties, which Mathieu Nouhin, GEA’s Product Manager for Freezing, said that there is no point
in continuing to cool a product beyond 100% frozen but, until now, there has
been no way of checking the LOF of products as a continuous part of the process.
“Callifreeze uses GEA’s unique sensing and control technology to measure the
LOF of every product in the spiral. It then adjusts the machine to achieve perfect
freezing in line with each customer’s requirements,” he said.
Even before the introduction of Callifreeze, the S-Tec was already a market
leader in the areas of hygienic design and operating efficiency.
Product advantages
GEA spiral freezers offer pure horizontal airflow, which provides a consistent
airflow and temperature distribution across all products wherever they are in the
spiral.
This ensures a small temperature differential within the machine, reducing
product dehydration, significantly improving the yield and keeping power usage to
a minimum.
The S-Tec uses a fully welded construction for the whole of the product-contact
belt area. It is also available with a fully welded modular floor that does not
require floor heating. This eliminates any dirt traps that would be created by a
bolted structure and provides a perfect surface for cleaning.
It can be configured with a choice of enclosure and floor types, single or twin-
drum configurations, and a selection of infeed/outfeed options. It also has a range
of cleaning options.
With its application center in Singapore, GEA’s regional service personnel are
involved at the commissioning stage of the equipment, allowing them to build
close relationships with each customer and provide maintenance, spare parts and
operational advice throughout the lifetime of the equipment.
“Daging Kita” carabeef from Bulog, sold
online in Indonesia.
16 ASIAN MEAT MAGAZINE – January/February 2020
SECTOR REPORT – FROZEN
Left: Indonesia mostly imports frozen boxed beef from Australia.
Below: Brazil is the top supplier of frozen pork to Vietnam.
than type of meat. For most of the
population, the meat they buy will be
whatever is most affordable.
Carabeef disrupts Even when sold at USD 5.3/ around 80,000 tons in 2019, and
Indonesia’s beef market kg, many were skeptical about believes India will ask for a higher
consumers’ acceptance of frozen allocation for 2020.
Buffalo meat imported from India, carabeef due to their continuing “The import of carabeef is directly
known as carabeef, is expected to preference for fresh warm meat. But related to our crude palm oil exports,
further disrupt the beef market in in the end, price has spoken. for which India is Indonesia’s big
Indonesia. Because it is cheaper than Indonesia began buying Indian importer.
cattle beef, consumer demand for it carabeef in 2017, when it received “If we push our palm oil more
has been growing. 55,000 tons, according to Bulog, a strongly, India will surely want to sell
The Indonesian government state-owned importer. more of its carabeef. I think they will
imported Indian carabeef to stabilize In 2018 and 2019, the quota was ask for at least around 150,000 tons
the price of beef that had previously pegged at 100,000 tons. Today more for the import allocation,” he told
touched USD 8.90/kg in the state-owned companies, including Asian Meat Magazine.
household market segment. Bulog, Berdikari and Perusahaan
Beef shift
Perdagangan Indonesia, are allowed
to import carabeef. If that happens, Mr Suhandri
Suhandri, believes that while total consumer
Secretary- demand will remain steady at around
General of the 250,000 tons, the beef market will
Indonesian see a shift. The foodservice segment
Meat Importers will try to use carabeef because of its
Association, abundant supply and cheaper price.
estimates that Carabeef sellers will also campaign to
carabeef now promote frozen meat.
accounts for He said local farmers should
almost 65% of redefine their positioning and
the household Suhandri perhaps focus on making money
and MSME during Muslim religious festivals. This
segments, which were previously repositioning will apply too to beef
dominated by local beef and exporting countries.
imported secondary cuts. “Australian beef imports may
decline but I believe they will grow in
Negative impact
the premium market,” Mr Suhandri
The Indonesian Cattle and Buffalo said.
Farmers Association said that carabeef Indonesia sources around 55-
imports have negatively affected local 65% of beef imports from Australia,
farmers. followed by the US, New Zealand
Allana is a prominent carabeef exporter to Nonetheless, Mr Suhandri estimates and Spain. Imports consist mostly of
Indonesia. that carabeef imports will reach prime and secondary cuts, and offal.
ASIAN MEAT MAGAZINE – January/February 2020 17
SECTOR REPORT – FROZEN
“Secondary cuts make up the bulk Beef imports are expected to Belgium, which has just been
because they go to households, increase this year on the back of a declared FMD-free.
MSMEs and meat processors. Imports frosty political climate. A tiff has led Its population is not just health
of prime cuts for the foodservice to India refusing to buy Malaysian conscious but it also cares about
segment has been stable so far,” said palm oil unless Malaysia concedes sustainability, making Singapore a
Mr Suhandri. to more beef imports. hotbed for carbon-free meats such
He anticipates beef imports will As for frozen premium meat such as the Borrowdale free-range pork, as
have stood at around 150,000- as wagyu beef, local importer AAH well as Five Founders beef.
160,000 tons for the last year, Nippon’s Managing Director Ajwad A recent meeting in Australia to
roughly the same as for 2018. Abu Hassan said: “We saw the entice Singapore food companies
wagyu consumption trend pick up to sample organic and carbon-free
Chicken and beef top
this year but the market is still new, products means more premium-
in Malaysia
which has prompted us to set up a branded frozen meat is on its way to
With a 98% self-sufficiency in processing plant to offer smaller cuts the country.
poultry production, Malaysia is a net in yakiniku or shabu-shabu portions. Meanwhile, Brazil is Singapore’s
exporter in this category. “But I feel the market is too main source of frozen poultry meat,
Chicken is the most consumed saturated when it comes to though Malaysian brands are also
meat in the country, with per capita premium beef, and I foresee its present in the market, including
consumption of 46.7kg in 2018. consumption lessening in 2020.” Kee Song and Aqina. As in Malaysia,
Fresh, frozen and chilled varieties poultry is Singapore’s most consumed
Pork imports
are supplied by big companies such meat, with annual per capita
as Leong Hup and QSR brands. The With self-sufficiency in pork at consumption of 34kg.
latter has captured a large market 92%, fresh pork meat is freely
More beef in Bangladesh
share through its KFC restaurant available. Nevertheless, Malaysia also
chain. imports pork products mostly in the South Asia has had a mixed
Malaysia’s large Muslim population form of frozen sausages, bacon and relationship with frozen meat, with
also consumes a lot of beef, 70% pork balls. Since September 2018, many countries preferring their
of which comes from India, and the all pork meat and products from protein fresh and locally produced.
rest from Australia, Pakistan and ASF-affected countries has been Over the last few years, however,
Bangladesh. Of the country’s overall banned, and the government has frozen meat imports have crept into
meat imports, beef is top with sheep not yet announced any changes to various niche markets to cater for
and goat coming in at 3%, according its import strategy. changing consumer behavior.
to a 2018 report from Meat and Frozen pork products continue
Livestock Australia. to be stocked in supermarket
refrigerators, though these come
only from ASF-
free countries such
as Australia and
Germany.
Premium meat
preferred
in Singapore
No other market
in this region is more
reliant on imported meat
than Singapore, which
ships in everything from
poultry to pork.
It also imports USD 11
million worth of live pigs
from Sarawak every year
and has banned all pork
meat and related products
from ASF-affected countries.
The small island nation is
big on food safety, and has
Frozen carabeef cuts at a supermarket in started to open up its pork
Bogor, Indonesia. market to countries including Keells frozen chicken sausages.
18 ASIAN MEAT MAGAZINE – January/February 2020
In Bangladesh, frozen meat frozen red that a large quantity of beef, lamb,
imports have been steadily growing meat and they mutton, duck and seafood are
over the last five years, Shamim are not doing imported on a needs basis for the
Ahamed, President of the Halal Meat that well,” he country’s foodservice and tourism
Importers Association of Bangladesh, said. industries. Of these, beef imports
told Asian Meat Magazine. Meat imports have shown a downtrend, but the
In 2017-18, meat imports stood from Australia, others remain stable.
at 1800 tons; by 2018-19, they New Zealand, Though Australia and Brazil are
had grown to 5000 tons, he said. Korea and traditional exporters to Sri Lanka,
The country mainly imports frozen Japan have Keells has more recently been
buffalo meat from India. also entered Shamim Ahamed looking to China for its pork. But
“It is cheaper than local meat, Bangladesh’s “with the current disease threats
so many like to buy it,” said Mr premium markets. Mr Ahamed we had to stop Chinese imports,
Ahamed. expects imports to help boost meat so there is a short-term gap in
The imports have also grown since consumption in the country. pork supply,” Mr Lalantha said. He
Bangladesh banned the smuggling expects this supply gap to adjust
Pork shortage in Sri Lanka
of live cattle from across the border itself by mid-2020.
in India. In Sri Lanka, meat imports have The local frozen pork industry has
He noted that it was Bangladesh’s been stable with some gaps in pork also seen an increase in demand
poultry industry that dominates the supplies due to ASF in China. as more people consume pork.
market though many consumers Nirosh Lalantha, Head of Quality This has put some pressure on
prefer to eat beef. Assurance and Research and companies like Keells, which also
“People do not eat much beef Development at leading meat re-exports pork to overseas markets
because they cannot afford it. Only processing company Keells Food including India. AM
2-3 local companies are selling Products, told Asian Meat Magazine
ASIAN MEAT MAGAZINE – January/February 2020 19
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