Processors Ramp Up Production Alongside a Growing Demand for Meat Goods
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merging trends, which have a direct impact on the dynamics of the food processing industry, include new technologies that reduce detrimental changes in foods and maintain their nutritional value.
In addition, the consistently rising demand and consumption of processed foods is a key driver for the market. However, despite being a universal necessity, this demand is more prevalent in the developing world where recent economic progress and increasing market openness to foreign goods has radically changed the food processing sectors in countries such as India and China.
As a result, the Asia Pacific remain the largest region in terms of market share. Furthermore, a significant consequence of this is the rise in consumption of proteins (beef, poultry, and pork). According to the USDA, in 2017, the global consumption of proteins was measured at 258 million tons. However, poultry segment has grown by approximately 16% between 2008 and 2017 making it highest growth segment.
And due to the higher demand for meant, the meat processing equipment is now one of the fastest growing segments in the food processing industry, especially in developing countries.
Furthermore, the food processing market is expected to reach an estimated USD 4.1 Trillion by 2024 with a CAGR of 4.3% from 2019 to 2024, according to data published by Research and Markets. China Xiangtai Food Co., Ltd. (NASDAQ PLIN), JBS S.A. (OTC JBSAY), Sanderson Farms, Inc. (NASDAQ SAFM), Conagra Brands, Inc. (NYSE CAG), Tyson Foods, Inc. (NYSE TSN)
A major advantage the food processing market has is its use of various methods and technologies to detect infectious diseases. On January 9th, virologists had identified the new strain of the novel coronavirus, which was tied to a specific wet market in the city of Wuhan where fish and other live animals were sold.
According to Emily Langdon, an infectious-disease specialist at the University of Chicago, These markets have been known to transmit viruses before. For cultural reasons in the region, people want to see the specific animals they're buying be slaughtered in front of them, so they know they're receiving the products they paid for.
That means there's a lot of skinning of dead animals in front of shoppers and, as a result, aerosolizing of all sorts of things, which is why these crowded markets are common places for viruses to jump from animals to people. It's actually how SARS, another coronavirus, started in 2003. As a result, modern food processing companies are often the answer to poorly regulated live-animal markets, which could provide viruses with opportunities to infect the human population.
China Xiangtai Food Co., Ltd. (NASDAQ PLIN) announced today that, the Company has donated 1,500 cartons of canned luncheon meat it produced, or 42,000 cans, to Huanggang Central Hospital and Wuhan No. 9 Hospital in central China's Hubei Province on February 8, 2020 and February 9, 2020 respectively.
With the second highest number of confirmed and suspected diagnoses in China, Huanggang city in Hubei Province has been hit hard by the outbreak of the 2019 Novel Coronavirus[1]. Residents of cities such as Huanggang and Wuhan have been instructed to stay home and suspected patients have been quarantined at designated medical facilities. This drastic yet necessary move by the Chinese government has undoubtedly led to a surging demand for non-perishable foods. In response to this mass-scale need for basic necessities, and also in an effort to aid the relief efforts in Hubei Province, the Company immediately decided to donate 750 cartons of luncheon meat cans each to Huanggang Central Hospital and Wuhan No. 9 Hospital.
Ms. Zeshu Dai, Chairwoman and Chief Executive Officer of the Company, commented, 'We would like to express our deepest respect for all aid workers and medical personnel fighting at the frontline against the coronavirus in Hubei Province. As the whole country continues to fight against this epidemic, the shortage of food supplies has become a serious problem that cannot be ignored. We are closely monitoring the needs of the residents in the affected areas. To support those patients and healthcare personnel battling at the frontline, we immediately made our inventories available to help increase food supply and delivered canned products to them. We look forward to working with everyone in overcoming the challenges ahead and aiding those who are currently fighting against the ongoing epidemic.'
✔️ Processors Ramp Up Production Alongside a Growing Demand for Meat Goods
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