The pressure on protein integrators continue to escalate from both consumers and the retail and fast-food sectors to provide less expensive, chemical and antibiotic-free, organic choices. A difficult challenge, indeed.
Savvy consumers continue to demand safe, affordable food. With a continued rise in the desire for antibiotic-free and organic products, producers have pivoted to fill that market. However, it has been at a high price as their options to keep animals healthy diminish driving up production costs.
Retail chains have also squeezed protein producers reducing margins as well. Consolidation among retail grocery chains has given them additional leverage. Large organic sections are now commonplace in almost all grocery stores, no longer can it only be found at Whole Foods.
There is help for producers on the horizon as Animal Health companies have realigned their R&D resources to focus on nutritional health and non-drug options. Delivering these options is generally quicker and less expensive than animal drug approvals. The ability to demonstrate efficacy and plausible data has improved significantly too. A strong focus on the microbiome, vaccines, and natural ingredients has been an emphasis. The technology in this space is continuing to show glimmers of providing real alternatives to antibiotics. Any R&D dollars dedicated to drug products are now focused on high margin companion animal products.
Despite the challenges, the demand for protein globally continues to grow as 3rd world countries’ economies improve and develop. Protein integrators are still poised and ready to feed the world.
Simon Hall
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