June 25, 2014

According to a new report from Rabobank, new packaging and processing technologies can extend the shelf-life of fresh and processed meat.

The report "Meat Packaging to Extend Shelf Life" lists benefits of the new packaging, including: expanded geographical sales coverage, better margins across the value chain, lower environmental costs and product premiumisation.

"New packaging and processing technologies have major benefits for retailers, consumers and producers alike," states Rabobank analyst, Clara van der Elst. "For the retailer, less waste and fewer markdowns are conducive to lowering costs. Consumers benefit from a longer consumption period and fewer preservatives, in turn fulfilling demand for 'natural' foods, and producers benefit from increased market potential through an expanded geographical export range".

The mature northwest Europe, where meat consumption dropped due to the declining population and changing buying behaviour, has the highest share of meat sales via modern supermarkets as well as "case-ready" packaging.

However, in eastern and southern Europe, the traditional meat retail channels of butcheries, specialty stores and open-air markets still dominates, creating export potential and demand for case-ready packaging is likely to grow fast.

Elsewhere, meat consumption in China and other Asian countries continue to grow. Particularly in China, local food-safety issues have driven up demand for meat produced overseas, while local meat production is failing to keep up with demand. In addition, European meat is able to compete on price of locally-produced meat.