Meat Chain in North/East of the Region Assoc. Prof. Dr. Kezban Candoğan Ankara University, Faculty of Engineering, Department of Food Engineering, Ankara, Turkey
Meat and meat products Primary source of protein Energy supply- through fat content of meat and meat products Source of vitamin A and B, iron, phosphorus and zinc
Key factors for food market Quality Price important for competitiveness and economic efficiency Source: Becker, 2002
Price Price premium The result of the interaction between supply of demand for QUALITY Consumer wants to pay a premium for quality Source: Becker, 2002
Food supply chain Input industries Agricultural sector Processing industries Retailers Consumers Agricultural input market Agricultural product market Wholesale food market Food market Source: Becker, 2002
Definition of quality Several definitions exist at the different stages of supply chain
Definition of quality- by consumers Defined by specific personal preferences and goals sensory and nutritional quality safety manufacturing procedure Source: Becker, 2002
Definition of quality- by retailers Definitionition according to the extent to which a product contributes to the economic goals of the retailers High margin Product with lower price longer shelf-life life and quick turnover positive image Source: Becker, 2002
Processors Two chains Fresh meat chain Meat product chain Slaughterhouses Raw materials Source: Becker, 2002
Efficient supply chain Response to the needs of consumer Alignment of the interests in supply chain Commitment to meeting consumer definition of quality at all stages of supply chain WHOLE MEAT SUPPLY CHAIN Source: Becker, 2002
WHOLE MEAT SUPPLY CHAIN Farm to fork OR Fork to farm Cartoons from M. Hatakka s presentation
Vertical integration/coordination bring people together from each part of the chain Meets consumer needs efficiently Prevents inefficient supply of quality through competing stages in the supply chain Uniform quality Source: Becker, 2002
The quality circle Producer Signals Characteristics Communication Production Cues Attributes Source: Becker, 2002 Consumer
How to improve quality of meat and meat products? Communication to the consumer of quality attributes Weakest part of quality management in meat sector Listen and speak to the consumer
Consumer quality attributes Inspection quality attributes Experience quality attributes Consumer perceptions of important attributes Eating quality Consumer skills in preparing meals Product development and innovation Credence quality attributes Better health image Management and control of food safety Technical regulations for ethical credence Source: Becker, 2002
Consumer attitudes towards meat safety Risks related to meat consumption; Microbial infections (Salmonella, Escherichia coli) Chemical residuals of growth hormones and antibiotics Dioxins Use of genetic modification in the production of animal feeds Bovine spongiform encephalopathy (BSE) High fat content and increased cholesterol
Systems Diagram of Business System Source: Taylor and Simons, 2005 -modified from Kast and Rosenzwieg 1981) Environmental Suprasystem Goals and Values Subsystem Technical Subsystem Inputs Managerial Subsystem Outputs Psychosocial Subsystem Structural Subsystem
Red Meat Sub-Systems Systems Sub System Goals and Values Technical Red Meat Example Production and consumer driven organisations Information Communication Technology Psychosocial Types of ownership along the chain Structural Size of organisation along the chain Managerial Type of leadership Source: Taylor and Simons, 2005
Meat Chain in North/East of the Region
Meat Chain in North/East Mediterranean Turkey Israel Syria Source: Vikipedi encyclopadia
Source: : FAO-GLIPHA Livestock production-land area
Meat Supply Chain in Israel
Food Industry in Isreal Among the most competitive sectors in the Israeli economy About 1,000 companies in the local food processing industry generally small companies. about 150 companies produced approximately 90% of the total value. Most processing facilities are located in rural areas. Source: Shachar, 2006, USDA Foreing Agricultural Service, Gain report, 2006
Israeli food processing industry value, by sub-sectors, percent (2004) Food Products n.e.c. 10% Alcoholic, Beverages, Beer & Tobacco 8% Soft Drinks 11% Processing of Meat & Poultry 13% Chocolate & Confecitionery 3% Processing of Fruits, Vegetables & Fish 8% Bakery, Matzos & Pastry Products 14% Grain Mill Products 10% Dairy Products & Ice Cream 18% Edible Oils, Margarine & Oil Products 5% Source: USDA Foreign Agricultural Service, GAIN Report, 2006
Israeli monthly household consumption expenditure for food (2004) Value Percent Consumption Expenditure total Food - total Meat and Poultry Seafood Milk, Milk Products and Eggs $2,320 $377 $59 $12 $57 100 15.6 3.2 15.1 Source: USDA Foreign Agricultural Service, GAIN Report, 2006
Meat consumption in Israel Source: A Preliminary Report of The Negev Foundation, 2004
Livestock industry in Israel Israel is situated in one of the regions most severely contaminated by diseases of domestic animals. Successful in establishing one of the most progressive livestock industries in the world.
Beef Dairy and beef herds accounted for about 13.9% of Israel s total agricultural production in 2002: 11.4% in milk and dairy products 2.5% in beef products. At 106,000 tons in 2000 62% of it imported Israel's consumption of beef was only 29% of its consumption of poultry products. The Export and International Cooperation Institute, Ministry of Agriculture and Rural Development
Beef production in Israel From Cattle, Beef, and Everything in Between: Production of Beef in Israel Israel Dairy Board, 2003.
Structure of Israel s beef industry Source: A Preliminary Report of The Negev Foundation, 2004
Slaughterhouses Most are small- to medium-sized operations built over 20 years ago. Three or four of the larger slaughterhouses have had building upgrades in recent years. Source: A Preliminary Report of The Negev Foundation, 2004
Processors and Distributors Distributors sell quarters or cuts to supermarkets and butchers processors of fresh products. A few integrated operations- Marbek and Tabach Source: A Preliminary Report of The Negev Foundation, 2004
Frozen beef A less expensive alternative to fresh Israeli beef (almost half price) Use in many institutional kitchens frozen beef exclusively for budget reasons. Use for production of a wide variety of ready to eat meat products. Source: A Preliminary Report of The Negev Foundation, 2004
Retail Marketing About 70% of fresh beef is marketed to consumers through supermarket chains butcher shops open market The institutional market primarily restaurants and hotels buys the remainder of the beef. Source: A Preliminary Report of The Negev Foundation, 2004
Supermarkets About 60% of fresh beef is sold through supermarkets. Israel s three large chains together sell about 44% of meat and poultry in the country. Source: A Preliminary Report of The Negev Foundation, 2004
Other Retail Outlets Neighborhood butcher shops sell about 25% of Israel s fresh beef. They are usually found in areas where the buying frequency is above average. Source: A Preliminary Report of The Negev Foundation, 2004
Sheep and goat production in Israel For milk and meat - one of Israel s oldest agricultural branches. The evolution of the Israeli sheep sector a good example of how modern technology has been integrated into a traditional farming system through research and extension. The Export and International Cooperation Institute, Ministry of Agriculture and Rural Development
Sheep and goat slaughtered annually in Israel Species # of animals slaughtered for meat Live weight Carcass weight Sheep 430,000 19,000 tons 10,800 tons Goat (kids) 70,000 2,500 tons 1,300 tons The Export and International Cooperation Institute, Ministry of Agriculture and Rural Development
Poultry sector in Israel It contributes to 19% of the country s total agricultural output. Consumption of poultry meat and eggs per capita, on a readyto-cook basis, is among the highest in the world. Annually, about 35 kg of chicken, 14 kg of turkey, and 250 eggs are consumed per capita in Israel. Additional sectors of the poultry industry goose liver ostrich farming The Export and International Cooperation Institute, Ministry of Agriculture and Rural Development
Broilers Breeding farms 17% of total poultry production Broiler farms 44% of total poultry production Breeding and broiler farms, as well as meat processing facilities, are fully automated. The Export and International Cooperation Institute, Ministry of Agriculture and Rural Development
Turkey industry in Israel World s the largest per capita consumer of turkey meat. Represents 18% of total poultry output. High quality meat production A wide variety of processed turkey products for export The Export and International Cooperation Institute, Ministry of Agriculture and Rural Development
Meat import in Israel Strong demand for quality Kosher beef and lamb. Kosher certification requirement for imported meat and poultry significant challenges for meat exporters. Possible import of non-kosher beef offal as an exception. Imports of beef and beef offal to Israel - not allowed currently due to the BSE problem. Source: USDA Foreign Agricultural Service, GAIN Report, 2006
Israeli livestock related imports by product 2003 2004 Product Category Million $ % Million $ % Live animals 22.59 0.92 21.62 0.74 Meat & edible meat offal 118.27 4.83 156.77 5.39 Fish, crustaceans and mollusca 102.86 4.20 103.19 3.55 Dairy produce; eggs, natural honey; edible products of animal origin 25.29 1.03 31.66 1.09 Products of animal origin 2.15 0.09 2.91 0.10 Source: USDA Foreign Agricultural Service, GAIN Report, 2006
Market requirements for meat in Israel Kosher meat Biotechnology Labeling of genetically modified food products is not yet required. Registration will be required for food products containing GMO ingredients, or derived from genetically modified soybean, corn, canola and chicory
Meat Supply Chain in Syria
Syrian agricultural sector One of the most important sectors in the national economy. Creates work opportunities and plays an important role in poverty reduction. Animal production sector contributes to about 15% of total agricultural exports. Source: Bahhadi et al, 2001
Per capita food production in Syria Source: EarthTrends, 2003
Livestock resources in Syria The indigenous livestock breeds of Syria are well adapted to the arid conditions in the degraded steppes Livestock resources in order of importance sheep cattle goats Among the white meat producers, poultry are predominant. Source: Bahhadi et al, 2001
Evolution of meat production in Syria, 1988-2001 (x1000 ton) Source-NAPC-Working paper #24, 2006
Syrian consumer Prefers sheep meat rather than other red meat like beef Switches to the consumption of beef if the price of sheep meat increases when heath awareness is considered Source-NAPC-Working paper #24, 2006
Source-NAPC-Working paper #24, 2006 Beef production in Syria The second important source of meat after sheep meat. A fluctuation in beef production has been observed during the last decades. Since 1995 the imports of beef has been banned until 1996 due to Bovine Spongiform Encephalopathy (BSE). Most traders have shifted to importing live animal instead of meat.
The commodity system for beef in Syria Main operators (Specific budget develop in the PAM) Domestic market Milk producer World market Live Animal Importer Other operators (Cost indirectly Imputed in the PAM) Fattener Flow Middleman Domestic Market Butcher SL. Carcass Importer Importer Possible Import Consumers Source-NAPC-Working paper #24, 2006
Cattle breeding in Syria Challenges; Disappearance of pastoral lands of the village which was participating in reducing the feeding cost of livestock Increase of the feeding cost resulting from the increase of the feed price Source-NAPC-Working paper #24, 2006
Syrian slaughterhouses Controlled by Supply, Health, and Local Administration Ministries. Most of the slaughterhouses are old and need more maintenance and improvement. There is also some new and modern slaughterhouses. Source-NAPC-Working paper #24, 2006
Beef Chain against Sheep Meat Chain in Syria At farm level; Activities in the beef chain are more profitable than in the sheep meat chain. At the wholesale level; Performance of the wholesaling activity in the beef chain is better than in the sheep meat chain. Source-NAPC-Working paper #7, 2006
Beef Chain against Sheep Meat Chain in Syria At retail level; Activities in the sheep meat chain are more profitable than in the beef chain. At slaughterhouse level; Profitability in the sheep meat chain is higher than that in the beef chain. Source-NAPC-Working paper #7, 2006
Meat Supply Chain in Turkey
Turkey s agricultural sector One of the few self-sufficient sufficient countries in the world in terms of agricultural production, especially for production of food items. One of the richest and largest countries in terms of land Source: Akbay and Boz, 2005
Livestock sector in Turkey An important part of the agricultural sector and economy Approximately 25% of the value of all agricultural production Contributes to the economic development of rural households. Source: Akbay and Boz, 2005
Total livestock production of Turkey Millions 50 45 40 35 head 30 25 20 15 10 5 0 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 Sheep Goat Cattle Source: adapted from Ministry of Agriculture reports, 2006
Livestock slaughtered in Turkey Millions 12,0 10,0 8,0 6,0 head 4,0 2,0-1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 Sheep Goat Cattle Source: adapted from Ministry of Agriculture reports, 2006
Millions Livestock milked in Turkey 30 25 20 head 15 10 5 0 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 Sheep Goat Cow Source: adapted from Ministry of Agriculture reports, 2006
Supply meat chain in Turkey
Livestock supply chain in Turkey based on the region Source: Ministry of Agriculture draft reports by Agri-Livestock Consultants Inc., 2007
Livestock supply chain in Turkey Individual animal feeding and marketing is generally dominant in Turkey. The number of procurement and marketing cooperative is decreasing and they are not powerful in market.
Livestock supply chain in Turkey Live animals are sold in local markets livestock fairs central livestock exchange markets. There are different ways of selling such practices by heads by live weights by net carcass weight by meat yield.
Livestock supply chain in Turkey The meat collected by wholesale butchers goes to the municipal slaughterhouses or private slaughterhouses the meat processing plants the retail markets the consumers
Livestock supply chain in Turkey Slaughtering is done in municipal slaughterhouses larger private slaughterhouses processing plants.
Number of slaughterhouses in Turkey Slaughterhouses Private Govermental Total Private- Class 1 Private- Class 2 Private- Class 3 Govermental- Class 1 Govermental- Class 2 Govermental- Class 3 Number 210 445 655 191 19 0 5 0 440 Average capacity by cattle slaughtered 86 18 0 42 0 4 Source: Ministry of Agriculture/SKGM, 2006
Distribution of slaughterhouses in Turkey Source: Ministry of Agriculture reports, 2005
Livestock authorities in Turkey Regulation for the livestock and meat market is made by the Ministry of Agriculture and local Municipal Administrations. The Power of Municipal authority is decreasing where live animals exchange market operates. However, local authorities have the power, the control, the flow of flocks from production areas to consumer centers.
Environmental issues in Turkey s livestock sector Environmental waste management Waste water purification systems
Red meat production Red meat production is not stable in Turkey because of fluctuation of livestock supply. This is mainly due to extensive breeding systems and difficulties to obtain feed.
Comparison of Turkey s per capita consumption of livestock products in 2003, kg/year Region Milk Red meat Fish Poultry Eggs World 79.02 27.64 28.44 11.71 8.40 Developing countries 45.61 20.45 24.98 8.01 7.21 Developed countries 202.14 54.17 41.27 25.31 12.81 European Union (25) 241.71 67.46 42.29 21.56 12.77 Turkey 98.05 9.42 14.49 9.83 6.91 Source: FAO, FAOSTAT Data Base, ; from Akbay and Boz, 2005
Consumption of red meat and processed products Total meat consumption is little higher than 1 million ton. Total consumption of red meat processed products is 60,000 tons. The balance of production and consumption is not good because of low consumption level.
Consumption of red meat and processed products Consumption of red meat changes very much from year to year depending upon the income and price changes. The demand for red meat has increased by to 6-7% in last years due to the effect of population and income increase. Processed red meat consumption also shows an upward trend, and it is estimated on a yearly base to 0.5%
Poultry sector in Turkey Increases in production and consumption of chicken meat in domestic market due to; Lower price of chicken meat against red meat health-related concerns Avian influence crisis in 2005. Extensive biosecurity precautions Nineteen integrated firm
Poultry production in Turkey 1.200 1.000 800 600 400 200 0 2004 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Chicken Poultry meat production (tons) Thousands
Turkey s per capita poultry meat 14 consumption per capita consumption (kg/year) 12 10 8 6 4 2 0 1990 1992 1994 1996 1998 2000 2002 2004 Source: BESD-BIR Report
Turkey s poultry production- primary production Importation of fertilised eggs Nucleus breeding stock Breeding farms Feed Water Hatcheries Broiler farms Transform of live birds at slaughter facility
Turkey s poultry production- primary processing Receival of live birds at slaughter facility Stunning Slaughtering Scalding Defeathering Evisceration Chilling Portioning: Boning facility Whole carcass: Storage and distribution of fresh/frozen poultry Value adding: Further processing
Turkish livestock sector An important part of agricultural sector and economy Increases in integration in livestock and agriculture short-term term benefits long-term sustainability of agriculture. Credit available to promote livestock products. Taking steps to gain membership in the EU
CONCLUDING REMARKS For an efficient whole meat chain; Food safety educational programs Increase diversity Extend HACCP Programs Biosecurity - Farm to Table Improve coordination with stakeholders