Tuesday, 05 December 2023 12:55

Plant-based meat wilting

Written by  Sudesh Kissun
Rabobank Research’s Nick Fereday says plantbased meat sales have hit a wall in the US. Rabobank Research’s Nick Fereday says plantbased meat sales have hit a wall in the US.

The plant-based meat product sector in the US is in a crisis, according to Rabobank's US-based executive director Rabobank Research, Nick Fereday.

Sales have "hit a wall" and Fereday blames this on price and taste - two of the main factors that drive consumer purchasing habits.

Speaking to a group of leading farmers from 12 countries in Hamilton last week, Fereday says plant-based meat and milk have been at the forefront of farmers' minds since 2019.

Plant-based meat and dairy sales were growing, although they started from a small base. While plant-based dairy sales seem to be holding up in the US, plant-based meat sales have tanked.

Fereday says it comes down to taste and price.

"At the end of the day, they are asking consumers to pay more for a product that isn't as tasty as the product they are trying to replace," he says. "Usually, new products are sold at a discount, but they did the opposite for plant-based meat."

A recent survey by Rabobank NZ and KiwiHarvest shows that vegetarian numbers saw little change while vegans significantly decreased back to 2021 numbers.

Fereday notes that the US plant-based market had received a boost at the start of the Covid-19 pandemic when consumers were forced to seek out meat alternatives because of supply chain issues. The sector was boosted by double digits at the start of the pandemic. But the sector has failed to recover since the pandemic.

Fereday says major meat companies who had invested in plant-based meat companies were pulling back.

Meat titan JBS abandoned its plant-based business in the US just two years after entering the alternative meat market in that country. Canada's Maple Leaf Foods reduced its plant-based investment, citing slower sales.

He believes long term there is potential for plant-based meat, not as an alternative to meat but as a vegetarian option.

While plant-based meat is overpriced and under delivering in the US, plant-based milk consumption is growing. Fereday says it doesn't taste as good as milk but is attractive to the lactose intolerant who make up a sizeable part of the US population.

Best of the Best

Twenty-eight farmers from five continents and 12 different countries are spending 10 days in New Zealand taking part in the latest Rabobank Global Farmers Master Class (GFMC).

The bank describes it as a state-of-the-art agri learning programme established in 2012 to bring together leading farmers from around the world to address global food security.

The 2023 Rabobank GFMC kicked off in Hamilton last week and will finish in Queenstown on December 6.

The master class programme will feature presentations from top agricultural thinkers and business experts, interactive workshops and case studies, as well as visits to a range of flagship agribusiness operations in both the North and South Islands.

More like this

Rabobank cuts loan rate

Rabobank New Zealand will reduce the variable base rate on its rural loans by 0.5%, effective from 16 October 2024.

Sheep farmers must learn from downturn, embrace changes

The sheepmeat sector would be wise to reflect and learn from the present downturn and embrace change needed to deliver stronger and more consistent returns year-on-year, according to Rabobank senior animal proteins analyst Jen Corkran.

Featured

Better animal genetic gain system

A governance group has been formed, following extensive sector consultation, to implement the recommendations from the Industry Working Group's (IWG) final report and is said to be forming a 'road map' for improving New Zealand's animal genetic gain system.

SIDE 2025's new schedule, venue

Annual farmer gathering, the South Island Dairy Event (SIDE), is set to make history as it heads to Timaru for the first time.

Taranaki piggery goes solar

Installing 400 solar panels at their Taranaki piggery and cropping operation will have significant environmental, financial and animal welfare benefits for the Stanley family.

Editorial: Keep FTAs coming

OPINION: The dairy industry will  be a major beneficiary of a new free trade deal between NZ and the Gulf Co-operation Council (GCC).

National

Food charity to hold online auction

Meat the Need, New Zealand’s dedicated charity delivering locally sourced protein meals to food-insecure communities, is launching an online National…

Machinery & Products

An ideal solution for larger farms

Designed specifically for large farms that want to drill with maximum flexibility, efficiency and power, the new Lemken Solitair ST…

Landpower increases its offering

Landpower and the Claas Harvest Centre network will launch the Claas Scorpion and Torion material handling solutions to the market…

» Latest Print Issues Online

The Hound

Leaky waka

OPINION: Was the ASB Economic Weekly throwing shade on Reserve Bank governor Adrian Orr when reporting on his speech in…

Know-it-alls

OPINION: A reader recently had a shot at the various armchair critics that she judged to be more than a…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter