Food security strategies and roadblocks…How to serve an industry that could be shaped or impacted by national interests’ supremacy?
On the last 2 decades, countries and companies changed their strategy and a Food security journey shaped global animal protein production land escape as population and income increase in developing world.
Chicken trade started around the 70’s but only around 2000 companies reached a more robust size and increase international footprint. With that, sanitary crises and barriers also become more frequent and making it a complex market to navigate. Analyzing the top 50 biggest chicken processors globally the majority are based on main traditional producer as Brazil, USA, Europe but within the TOP 5 producers there is China and Russia.
?Also, along the list of companies you may find 02 Saudi Arabia, 01 India, and 01 Ukraine there are not a top producer as a country.?Countries such as Russia, that started food security journey earlier are now exploring trade revenue specially for developing markets destinations, considering geopolitical preferences such as China. There might be a problem though, if the government that invested on self-sufficient production expects that would be a non-inflationary item on domestic prices, if trade is going really well…
As a business manager along the animal protein value production chain, observed that strategy is only one of main pillars that goes along with excellence in execution and inspiring teams. The main goal is to find in the target market, a "sweet spot", that could be:
- Expanding market to "Noncustomers".
- Delivering value innovation, to current customers/ partners.
- Cutting costs related to offers non valuable to your customers.
The hardest part for me, besides connecting dots that seems nonlinear at the first look, is to validate your assumption with target partner or market.
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Because, if your team is not orchestrated, you may have more difficulty to find a potential Gap that could be adjusted...
What is the catch?
Chicken production efficiency and cost benefits justifies these findings as this rationale does not represent the reality on other animal proteins such swine, dairy or beef production.
-??????Investments needs to consider all food production chain including international partners in trade and imputes supply.
-??????There is no easy answer or one size fits all, personally I’m more favorable to a global footprint model that includes different producing & processing geographics, local distribution partners or JV and capital investment structure.
??????????Besides monitoring market trends and Macro/ Micro influence to establish Where to play. It's ????
crucial if not more important, validating the "How to win?", with an inspired team!