06 Nov 2020
Posted in Consumer
Biden leadership to lend much-needed helping hand to US meat sector, says GlobalData
Following the news that Joe Biden is in a marginal lead to win the US election;
Jim Toy, Consumer Analyst at GlobalData, a leading data and analytics company, offers his view on how Biden’s leadership could reduce the health crisis in the US and reboot the US’ international trade partnerships:
“If Biden is to win the presidency, the food industry will be hoping that promises such as the resolution of the US-China trade war will come to fruition. COVID-19 has garnered serious concern regarding food contamination, and, with forecasting almost impossible in the worst-hit states due to infection rate uncertainty, international meat processing manufacturers may be looking away from large manufacturers based in these areas – such as Tyson Foods.
“Recovering markets such as China translate to big business for US meat manufactures. The global meat sector stood at $1.267 trillion in 2019, according to GlobalData, with Asia-Pacific holding the largest value share of 45.8%. US meat processors such as Tyson show long-term export potential, but plant closures and high on-site infection rates this year have severely damaged the global reputation of these firms.
“At this rate, the meat manufacturing industry will need government stimulus support to keep up growing businesses that are integral to keeping rural states turning a healthy return – plus significant reassurances to international markets. Now that meat processing plants are facing increased risk of infection, as well as increased consumer demand for traceability and accountability, the manufacturing side is also suffering.
“GlobalData’s recent recovery survey, published 14 October, shows harsher regulations in food safety would also play well with both Chinese and US consumers, with over 62% of survey respondents from each country saying that the trust-worthiness of the manufacturer often or always influences their choice in meat products.
“An easy solution would be Biden’s suggestion of new federal laws to improve food safety standards. Unfortunately, GlobalData currently sees positive trends in flexitarian diets and plant-based meat alternatives, putting an even heavier strain on the US meat market sales for years to come.”