OPPORTUNITIES TO GROW THE EGG BUSINESS IN AFRICA

Transcription

1 OPPORTUNITIES TO GROW THE EGG BUSINESS IN AFRICA Vincent Guyonnet, DVM, Ph.D, Dipl. ACPV FFI Consulting Managing Director Poultry Africa 2017 Kigali, Rwanda October 5, 2017

2 AGENDA The Egg A global food Opportunities at National level Market growth Opportunities for egg producers Market share Conclusions

3 The egg A global food 50% 45% 40% 35% 30% 25% 20% 15% 10% % Growth of the Global Animal Production ( ) 5% 0% 44,3% 27,6% 25,9% 24,5% 18,6% Chicken Meat Milk Eggs Pig Meat Sheep / Goat Meat Source: FAOSTAT accessed million metric 11,5% Cattle Meat

4 The egg A global food Top 10 producing countries 2014 Country Production of eggs (Metric tonnes) China 24,598,000 USA 5,973,968 India 3,965,474 Mexico 2,567,199 Japan 2,501,921 Russian Fed. 2,313,500 Brazil 2,240,551 Indonesia 1,428,947 Ukraine 1,119,800 Turkey 1,071,587 ~66.4% worldwide production Source: FAOSTAT, accessed

5 The egg A global food Top 10 producing countries in Africa ( 2014) Country Production of eggs (Metric tonnes) Nigeria 660,000 South Africa 499,233 Egypt 481,339 Algeria 351,512 Tunisia 100,000 Morocco 84,615 Kenya 81,993 Burkina Faso 60,714 Libya 60,000 Zambia 55,497 ~3.5 % worldwide egg production Source: FAOSTAT, accessed

6 Top 10 countries in Africa for increased production ( ) Country Increase (tonnes) Increase (%) Egypt 236, % Nigeria 184, % Algeria 171, % South Africa 142, % Mozambique 42, % Uganda 26, % Kenya 21, % Ghana 18, % Tunisia 18, % Burkina Faso 16, % Source: FAOSTAT, accessed The egg A global food ~ 6.2 % global growth in egg production

7 The egg A global food 13% of Global population ~4.4 % Global egg production

8 The egg A global food Egg Consumption* / person / year (2015) China Est. Mexico Malaysia Japan USA South Africa India Source: IEC, 2016 * Based on consumption of shell eggs and egg products (processed foods)

9 The egg A global food Estimated consumption of eggs in Southern Africa Countries Consumption (eggs / person / year) Botswana 32 Malawi 45 Mozambique 4 Namibia 96 South Africa 150 Zambia 48 Zimbabwe 42 Source: IEC, 2013 Country questionnaire from joint IEC-FAO technical seminar

10 The egg A global food In 2013, 50 countries consuming less than 1 egg per week Africa Asia Caribbean Latin America 34 9 countries - consumption less than 1 egg per month Source: FAOSTAT - accessed

11 Market Growth

12 Market Growth Egg production forecast ( ) ~ 4% annual growth over past decade: 3,5 3 2,5 2 1,5 1 0,5 0 Million tonnes % growth forecasted by 2025: + 750,000 tonnes in sub-saharan Africa Eastern Africa + 4 % annually Western Africa + 3% annually Source: OECD-FAO Agricultural Outlook % ( )

13 Market Growth Positive drivers in Sub-Saharan Africa Population growth: 950 million in 2016 (13% global population) 1.22 billion by 2025 (2.7% p.a.); 2.1 billion by 2050 (22% global population); Increased urban population (42% by 2025); Increased per capita income and growing middle class in urban areas; Changing consumers eating habits more calories, more proteins (Animal source Foods) and more processed food; Growing access to new information and communication technologies; Source: OECD-FAO Agricultural Outlook

14 Market Growth Egg farmers Organizations PAZ

15 Market Growth National Food-based dietary guidelines Only ~ 30% mentioned eggs Source: Food systems and diets: Facing the challenges of the 21 st century Global Panel on Agriculture and Food systems for Nutrition (2016)

16 Market Growth Consumer promotional campaigns Promote the good nutritional value of eggs; Promote the ease of using eggs in multiple ways to prepare dishes and meals; Promote eggs as a great source of proteins and nutrients vs. other animal source foods; Demystify existing taboos about the consumption of eggs;

17 Market Growth Consumer promotional campaigns

18 Market Growth Consumer promotional campaigns Mobile technologies / Social media for cheaper, easier direct connections with consumers

19 Market Growth National campaigns to boost consumption

20 Market Growth Goal Increase the consumption of eggs The new Snack food

21 Market Growth Evolution of egg consumption in Colombia Eggs/person/year % 0 Source: IEC data

22 Market Growth Animal proteins as % of daily intake Region Total protein (g/day) Protein from animal source (g/day) As % of total intake World % Africa % North America % South America % Asia % Europe % Oceania % Source: FAOSTAT - accessed

23 Market share through differentiation

24 Market share Power of branding

25 Market share Power of branding

26 Market share Your Brand vs. Competitors

27 Market share Build new product categories Enriched / Functional eggs: Vitamin A, B12, D, E, Folate Selenium Omega-3 fatty acids Lutein and zeaxanthin

28 Market share Build new product categories Animal welfare-friendly eggs : Free Range

29 Market share Build new product categories Animal welfare-friendly eggs : Nestlaid (Enriched cages) Organic

30 Market share Build new product categories Feel good eggs: Hens fed ration without any animal by-products

31 CONCLUSIONS Globally, tremendous increase in production and consumption but Africa is lagging behind; Opportunities at country level to build awareness, benefits and needs to consume more eggs; Building brands and creating new product categories will grow business and market share; Strong, active egg farmers organizations are key to expand the market size for eggs;

32 RAISING TOGETHER THE AWARENESS ABOUT EGGS OCTOBER 13,

33 @VincentGuyonnet