Despite growing acceptance of plant-based meat alternatives, study conducted by Grand View Research projects continued growth of the worldwide demand for meat.
PALM BEACH, Florida, May 27, 2020 /PRNewswire/ -- The worldwide demand for meat products has been rising steadily for years and is projected to continue. Both the processing markets and the packaging markets will see ever increasing revenues for the next several years according to various industry reports. The Packaging market (the smaller of the two) is anticipated to reach USD 2.5 billion by 2025, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 2.7% during the forecast period. The report says: "Rising demand for fresh products such as pork and beef coupled with awareness regarding the safety and nutritional value of these products is projected to drive the growth." The processing market, however, dwarfs the packaging sector. A report from Statista said the market value of processed meat will exceed $1.5 Trillion dollars by 2022. Their report added: "In the past, many cultures considered meat a luxury that could only be enjoyed on special occasions or certain days of the week, while today it is a staple that can be found in nearly all restaurants and many kitchens all over the world. Poultry is the most popular kind of processed meat, with a 38 percent share of the global market. Red meat, which includes pork and beef, takes up about a 33 percent share. However, seafood, often considered healthier and more environmentally friendly than other meats, saw a higher compound annual growth rate than both red meat and poultry. In 2017, the United States saw the the highest revenue from meat products and sausages, nearly twice as much as the second largest meat market in the world, China." Active stocks in news today include: China Xiangtai Food Co. Ltd. (NASDAQ: PLIN), Sanderson Farms, Inc. (NASDAQ: SAFM), Beyond Meat, Inc. (NASDAQ: BYND), Tyson Foods, Inc. (NYSE: TSN), Archer-Daniels-Midland Company (NYSE: ADM).
The Statista report continued: "As the demand for meat rises worldwide, so must the production of meat. Most of the world's meat is produced in Asia. Pork and poultry are the most widely produced types of meat, with sheep being the least produced. Although many people abstain from pork for nutritional or religious reasons, pork is widely consumed and produced in China and Europe. In addition to producing the highest revenue from meat sales, the United States is also a major producer and exporter of meat, especially beef. Brazil is also a major exporter of meat, both in the form of broiler chickens and beef… The projected per capita meat consumption is expected to remain steady at around 35 kilograms of meat per year. However, as the global population continues to climb, the overall consumption of meat is expected to rise steadily in the upcoming years."
China Xiangtai Food Co. Ltd. (NASDAQ: PLIN) BREAKING NEWS - PLIN Provides Update on Current Business Operations - China Xiangtai Food (the "Company" or the "PLIN"), an emerging growth company engaged in the food processing business, today provided a business update and reported on recent corporate developments.
The Company noted that the U.S. Senate passed the Holding Foreign Companies Accountable Act, which would require the Securities Exchange Commission to prohibit the trading of companies whose auditor has not been under the inspection of the Public Company Accounting Oversight Board (PCAOB). The Company assures that its consolidated financial statements were audited by a PCAOB-inspected public accounting firm and therefore would not be subject to proposed prohibition.
Although not affected by the Senate Bill so far, the Company remains committed to providing transparent disclosure to its shareholders. To protect the interests of investors, the Company will keep enhancing transparency and disclosure.
As the restaurants gradually reopen, overall pork demand in China is expected to recover. The Company has fully resumed manufacturing activities this month. All employees are required to adhere to applicable safety protocols including but not limited to appropriate social distancing measures, strict sanitization practices, the use of personal protection equipment, and daily employee health checks.
To maintain business continuity and stability, Xiangtai strategically develops towards the upstream of the food supply chain. Recently, the Company rented a 2,500 square meter hog farm in Guangxi Province, further expanded into hog breeding business and vertically integrated the food supply chain.
"Businesses are as usual for us and our operations are back to normal to meet the demand of our customers. As a company serving people's essential needs, we are doing our best to provide healthy and safe products to our customers and to support our valued channel partners," said Ms. Zeshu Dai, Chairman and Chief Executive Officer of China Xiangtai Food Co., Ltd. "While expanding into hog breeding business, we are producing our products in a more environmentally friendly way and ensuring higher quality. We expect to continue expanding the market share in the southwest area." Read this entire press release and more news for PLIN at: https://www.financialnewsmedia.com/news-plin
In other industry news this week of note includes:
Sanderson Farms, Inc. (NASDAQ: SAFM) recently announced that it will host its second quarter fiscal 2020 earnings conference call at 10:00 a.m. Central time, 11:00 a.m. Eastern time, on Thursday, May 28, 2020. During this call, management will comment on Sanderson Farms' financial and operating results for the second quarter ended April 30, 2020. Those who wish to participate in the call may do so by dialing 888-204-4368 (Conference Code 7782528).
A live online broadcast of Sanderson Farms' conference call will also begin at 10:00 a.m. Central time, 11:00 a.m. Eastern time, on Thursday, May 28, 2020. An online replay will be available approximately two hours following the conclusion of the live broadcast and will continue for 30 days. The link to this event may be found at the investor relations section of the Company's website. A telephone replay will begin approximately two hours after the call ends and will be available for seven days. To listen to the telephone playback, please dial 888-203-1112 (Conference Code 7782528). Sanderson Farms, Inc. is engaged in the production, processing, marketing and distribution of fresh, frozen and minimally prepared chicken.
Archer-Daniels-Midland Company (NYSE: ADM) recently announced commitments to reduce water intensity by 10 percent and achieve a 90 percent landfill diversion rate by 2035 as part of an aggressive plan to continue to reduce the company's environmental footprint. The commitments were announced as part of the company's Corporate Sustainability Report, which also includes updates on ADM's overall sustainability journey.
"The importance of these commitments becomes even clearer amid an unprecedented challenge such as the COVID-19 pandemic," said Chairman and CEO Juan Luciano. "Companies like ADM are playing a critical role in supporting and maintaining the global food chain. And while we are focused on operating safely and effectively today, we cannot lose sight of tomorrow. Even amid these global challenges, we are continuing our work to ensure that ADM and the natural resources on which we depend remain strong and vital in the years to come."
Tyson Foods, Inc. (NYSE: TSN) Tyson Fresh Meats, Inc., the beef and pork subsidiary of the company, recently announced it will resume limited production at its Waterloo, Iowa facility on Thursday, May 7. Team members have been invited to tour the facility Wednesday to view the enhanced safety precautions and protective social distancing measures installed throughout the plant.
The reopening of the facility follows a tour of the plant by Black Hawk County health officials, Waterloo Mayor Quinten Hart, Black Hawk County Sheriff Tony Thompson, UFCW Local 431 President Bob Waters and other local business leaders and a subsequent joint company and community leader review of the company's protocol to safely resume operations.
Beyond Meat, Inc. (NASDAQ: BYND) a leader in plant-based meat, recently announced that it has entered into a new $150 million five-year secured revolving credit facility (the "New Credit Facility") to support its future growth initiatives. The New Credit Facility also includes an accordion feature for up to an additional $200 million.
"Our current cash and liquidity position is strong, and we are pleased to complete this New Credit Facility on terms that will provide Beyond Meat with a greater amount of financial flexibility and better position the Company for long-term success," said Mark Nelson, Beyond Meat's Chief Financial Officer and Treasurer. "We appreciate the support of our lenders as this transaction lowers our cost of capital, is expected to support our future global growth initiatives and enables greater strategic flexibility. We remain committed to providing consumers around the world with great-tasting plant-based meats, while contributing to important health, climate, natural resource, and animal welfare goals."
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