Poultry International - July 2018 - 7
Credit: Chalabala I iStockPhoto.com
PoultryInternational ❙ 7
group is four times more likely than
boomers to avoid products from
"the big companies."
It is now the small brands, rather
than traditional household names,
that are driving margins for retailers, along with better-for-you claims
and organic and fresh, all of which
are growing above trend.
This is generating a significant
squeeze for mass merchants, who
are becoming much tougher trading
partners, and are increasingly stepping up their game in procurement.
Despite concerns, broader
outlook is promising
A similarly mixed, albeit more
optimistic, picture was painted by
Professor Trevor Williams, former
chief economist at Lloyds Bank,
who looked more broadly at the
global economy. He noted that
while there were numerous geopolitical risks on the horizon, market
perception of risk is low.
Although this mismatch could
represent a shock to markets, he
noted that, since the last economic
downturn, the global economy has
grown on average by 2.5 to 3 percent
per year, and more income per head
has been generated, which feeds
through into higher consumption.
Despite the geopolitical risk,
expectations for growth in the short
term continue to rise in most parts
of the world, along with consumer
A synchronized global economic
recovery is taking place, across a
broad range of countries, and none
are experiencing negative growth.
July 2018 ❙ www.WATTAgNet.com
The pace of growth is stronger in
some than in others, and contributions of each vary to overall global
gross domestic product, but the
widespread nature of the recovery is
what makes it sustainable.
He cautioned that the pace of
growth may slow, but it is expected
to continue upward, unlike inflation,
where no significant increases are
expected, and this will help to keep
interest rates low. Even where inflation rises, it will be low by longterm standards.
The pace of growth, however,
may slow. The global economy will
continue growing, but the pace may
Lambert noted that the work
of the foundation was "the right
thing to do." He continued that the
foundation demonstrates the industry's commitment, engagement and
dedication to give back to society
and to help to make the world a better place.
Egg industry in action
Despite this synchronized recovery in the global economy, there
remain numerous parts of the world
where hunger is an issue and Tim
Lambert, IEC chairman, relayed
to delegates the work being carried out by the International Egg
The foundation was established
in 2014 with its first project taking
place in Swaziland. Since then, it
has fed more than 3 million children in the country.
The work of the foundation has
grown. For example, a project has
been started in Mozambique, which
is working with a college school
that teaches students how to produce eggs via a teaching farm. They
are allowed to keep 50 percent of
the money generated by the farm,
which can then be invested in their
own egg business once training is
The industry's charitable initiatives are not
only the right thing to do but they also raise
the sector's profile with global organizations
and ultimately consumers, said Tim Lambert,
IEC chairman. Credit - IEC
Additionally, he noted, creating
a more positive pitch for the industry with leading international decisionmakers elevated the sector in
the eyes of these global players and,
by extension, with consumers.
Consumers increasingly want
to know more about where their
food comes from, that animals are
used humanely, they have environmental concerns, and they want to
know that the day-to-day practices
followed by the industry are contributing to the world. They want to
know, and are demanding to know,
that companies are doing more than
simply maximizing profits.