The world is continuously growing and as the population increases so does the consumption of food products, including meat. With the global population expected to exceed 9 billion by 2050 and income levels rising, demand for products such as beef is increasing and will only grow1. An agile supply chain and a nimble 3PL can help meat producers keep up with the growing demand and evolve with an ever-changing market.
Trends in the Meat Industry
The livestock industry is growing at a rapid pace, driven by population growth, urbanization, and rising incomes. Globally, annual meat production is projected to increase from 218 million tons in 1999 to 376 million tons by 20302. Getting food from farm to table and ensuring food integrity can be a complex process. Improvements in infrastructure, including the cold chain, provide the opportunity to bring consumers meat from distant regions.
Texas produces the most beef in the United States while Iowa produces the most pork and the most poultry is produced in Georgia3. Getting a fresh Texas raised steak up to a customer in Maine requires a supply chain solution intertwined with refrigerated transportation and warehousing that are transparent and are compliant with regulatory guidelines.
The Regulatory Impact
Regulations can shape a company’s ability to get products to a consumer quickly. Ensuring food is transported in a sanitary manor and preventing food borne illness is a priority for any food shipper. In 2015, Chipotle faced food safety issues, temporarily closing stores due to an E. coli outbreak, norovirus encounters, and failing temperature requirements. This crisis damaged the company’s reputation, impacted its supply chain, and hurt Chipotle’s bottom line. With a 3PL, shippers can experience seamless and uninterrupted supply chains since 3PLs can expertly manage and stay current with regulatory requirements that impact food products.
The Food Safety Modernization Act (FSMA) was placed into effect this year, setting new standards for transportation of products grown in the United States and imported food. The preventative act focuses on temperature control, vehicle maintenance, sanitation, and driver education4. Extensive documentation of the transport process is required for carriers but a 3PL can provide the expertise and resources to guide companies in improving compliance.
In addition to FSMA, the International Maritime Organization placed a rule into effect on July 1st known as the International Convention for Safety of Life at Seas (SOLAS). The rule requires exporters to provide verified container weight information prior to loading the cargo on ships compared to only an estimated weight before6. With beef exports in the Unites States reaching $6.3 billion in 20156, this can have a large impact on the meat industry. The rule can result in the inability to transload late cargo, which would then delay until the next sail and potentially cause chilled fresh meat products to freeze and risk their quality. A global logistics provider can help navigate SOLAS requirements and ensure on-time delivery and product integrity.
The meat supply chain requires uniquely engineered solutions to deliver fresh product to consumers while managing regulations and industry changes. Count on your supply chain provider to get that delicious chicken to stores in time for dinner or mouth-watering steaks ready for a family barbecue. As the population grows and the need for increased food production occurs, a 3PL partner can handle the complexities while you continue to make delicious products.