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niche player.”
Can firms survive at a regional and
national level?
“The answer is that you can
survive even at the local level, but
you will have a local, regional and
national level size, and it will be hard
to stick your head out of the trench.
Hard but not impossible,” he said.
Budzynski also sees challenges
ahead for single-protein, regional
companies, but he pointed to
inherent advantages they enjoy.
“Customers are increasingly
looking for the kind of logistical and
operational benefits that come from
bundling two or three proteins in the
marketing and distribution channel,”
Budzynski said.
“However, there will continue to
be room for regional players because
of their fresh positioning, particularly
due to the consumer demand for
locally sourced products. The real
question is whether that sector
ends up being 10% of the market or
40% of the market. A big part of the
answer has to do with how well the
big players integrate their operations
and run their strategies. If they do a
ho-hum job of execution, I think the
regional/local players can continue to
be a very sizable piece of the market.
It’s really about execution on the part
of both groups that will determine
what the ratios are,” he said.
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