Pet Food and Brazilian Chickens

Welcome back Food Junglers. Judging from the recent news, the United States can’t seem to catch a break. Elsewhere, poultry-related diseases and political games continue to plague the food industry. Let’s dig in.

This week:

🇪🇺 Diplomats express their concerns with the European Union.

🐕️ The UK approves lab-grown meat for pets.

🍔 Beyond Meat considers a restructuring deal with bondholders.

🍗 Another poultry-related disease is spotted in Brazil.

🍝 Pasta becomes chickpea based…

CLIMATE
EUROPEAN UNION INFIGHTING

Diplomats from across the world – especially in Australia and Brazil - are growing adamant that the European Union (“EU”) should delay its new initiative that aims to ban imports from deforested land.

Starting December 31^st, the EU could unilaterally ban imports of palm oil, coffee, cattle, cocoa, soy and many other edible products.

However, the problem for many countries that oppose this ban – from Austria and Finland to Canada – is that there aren’t enough accurate data for this ban to be appropriately enforced. 

ZOOMING OUT: At the root of this issue is that the imposition of European standards seems to have angered countries who don’t have the technological capabilities to comply.

So, at the moment, we’ll have to see whether the EU will introduce any margins for error.

POLICY
UK APPROVES LAB-GROWN MEAT

Britain has become the first European nation to approve the production and sale of lab-grown meat for pets, prompting opposition from other European nations.

More specifically, approval was given to Meatly, a British company that grows meat from chicken cells for pet food. And according to the company’s plans, feeding trials will begin in August.

This news comes at a time when the worldwide market for pet food is expected to grow to $151 billion this year alone. And for the UK – a country which is no longer beholden to the slow-moving approval process of the European Union – the lab-grown meat space presents a huge opportunity.

ZOOMING OUT: The world is fracturing into “pro-lab-grown meat” and “anti-lab-grown meat” camps as Italy, France, Austria, Hungary and the United States are heavily debating its future. Could the UK be the next lab-grown meat hub?

BUSINESS
BEYOND MEAT RESTRUCTURING

Plant-based meat producer, Beyond Meat, has allegedly engaged with a group of bondholders to initiate discussions about financially restructuring the company.

The plan comes after a disappointing earnings call for the quarter, ending March 30^th, during which the company’s revenue declined 18% to $75.6 million year-over-year.

For Beyond Meat this is a slight reprieve, as overall plant-based sales have been disappointing, especially after Beyond Meat’s blockbuster 2019 public offering.

ZOOMING OUT: Beyond Meat has been having a rough few quarters as layoffs have also been on the cards for the plant-based giant.

As much as I’m a huge supporter of the company’s vision, I’m slightly worried that demand softness in the plant-based category will soon bite the company in the rear. 

SUPPLY CHAIN
BRAZILIAN NEWCASTLE DISEASE

Brazilian health authorities are currently trying to contain an outbreak of Newcastle disease on a poultry farm in Brazil’s southernmost state.

Newcastle disease is a viral disease that affects domestic and wild birds, causing respiratory problems that can lead to death. And for Brazil – the world’s largest chicken exporter responsible for almost 40% of global supplies – this is code red.

It has been estimated that around 7,000 birds have perished on the property where the outbreak was detected.

ZOOMING OUT: Countries which buy poultry products from Brazil have been informed of the issue, as detection of Newcastle disease could trigger worldwide trade bans. So far, however, the issue is not apocalyptic.

THE BRIGHT SIDE
CHICKPEA HEAVEN

As a vegetarian, I always get asked how I get my protein. I almost always answer with the same ingredient: chickpeas. I’m obsessed with them if I’m honest.

Banza is one of those companies that I should have written on much earlier. From waffles to pizzas, Banza is trying to make as many staple products as possible from chickpeas in an effort to make the plant mainstream.

Chickpeas have 50 times more protein than pasta, 3 times more fibre, and 25% fewer net carbohydrates. So, from a health perspective, this is a major win.

The company has a lineup of different pastas in Whole Foods, Walmart, Costco, and Target with a great, vividly orange brand. If anyone is keen to get their proteins from plants this summer, I would highly recommend. Food Jungle approved ✅ 

BEFORE YOU GO…

• Unilever plans to slash a third of its office-based roles in Europe by the end of 2025 as part of a broader effort to revive growth at the consumer goods giant.

• Britain's grocery regulator has threatened Amazon with a formal investigation if it does not improve its compliance with an industry code designed to protect suppliers.

• The Russian ministry of agriculture has declared that the grain-growing region of Rostov will expect its grain harvest to decline 38% the year to 10 million tonnes, as a blistering heatwave followed spring frosts.

• Chinese-owned, pork giant - Smithfields - is considering going public later this year.

TAKE A BREAK

If you’re interested in some quality ORIGINAL journalism on what’s been going on in the food industry, look no further than Green Queen.

Founded in 2011, by Sonalie Figueiras, the team looks to analyse and discuss the latest news in food, from cultivated meat to food waste. Thoroughly recommend! 🤩 

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