Les Cahiers de l'IFIP [PDF]

Les Cahiers de l’IFIP Revue R&D de la filière porcine française Vol 2 - N° 2 - 2015

Cured meat products in Europe: main characteristics of the different producer countries Bérengère LECUYER (1) et Vincent LEGENDRE (2) (1) IFIP‐Institut du Porc, BP 35104, 35651 Le Rheu Cedex, France (2) IFIP‐Institut du Porc, 34, Boulevard de la Gare, 31 500 Toulouse, France [email protected]

The cured meat product link makes an enormous contribution to the competitiveness and dynamism of the pig industry. The organization and the types of companies and products differ greatly from one country to another. This is clearly illustrated in this article, based on the analysis of statistical and bibliographical data, and comple-mented by interviews with professionals and experts in the sector. Spain and Italy rely on the qualitative image of their dry cured products to vitalize their exports, including to third countries, whereas their domestic market has been hindered by the crisis. In Spain, the cured meat products sector is very well-integrated into the slaughtering-meat cutting industry, while Italian companies are more specialized (except the PDO (Protected Designation of Origin) ham segment) and rely on fresh meat imports. Germany is the leading European producer and exporter. Its cured meat product sector is still very fragmented and is not very well-integrated with the slaughtering/meat-cutting sector. The predominant place of sausages enables substitutions to be made between cuts of meat and makes it easier to enhance the value of the whole of the carcass, as in Poland. In the United Kingdom and Denmark, the processing sector is highly concentrated and organized around two types of operators: large integrated groups and more specialized companies. Denmark is focused on the international market and concentrates more particularly on the United Kingdom, in terms of exports and investments. In the United Kingdom, the policies adopted to make better and more profitable use of British pigs seem to be more difficult to achieve for processed products than for fresh pork. In Poland, the cured meat product market is in rapid development, driven by foreign groups which are becoming established there.

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Charcuterie-salaison en Europe : principales caractéristiques de différents pays producteurs Le maillon de la charcuterie-salaison contribue fortement à la compétitivité et au dynamisme de la filière porcine. L’organisation, les types d’entreprises et de produits sont très différents selon les pays comme le montre cet article. Comme le montre cet article qui reposesur l’analyse de données statistiques et bibliographiques, complétée d’entretiens avec des professionnels et des experts du secteur. L’Espagne et l’Italie s’appuient sur l’image qualitative de leurs salaisons sèches pour dynamiser leurs exportations, y compris vers les pays tiers, alors que leur marché intérieur est freiné par la crise. En Espagne, la charcuterie-salaison est très intégrée à l’abattagedécoupe tandis que les entreprises italiennes sont plus spécialisées (hors segment des jambons AOP) et s’appuient sur des importations de viande fraîche. L’Allemagne est le premier producteur et exportateur européen. Sa charcuterie-salaisonnerie reste très atomisée et peu intégrée à l’abattage-découpe. La place prépondérante des saucisses permet des substitutions entre pièces et facilite la valorisation de l’ensemble de la carcasse, comme en Pologne. Au Royaume-Uni et au Danemark, le secteur de la transformation est très concentré et organisé autour de deux types d’opérateurs : de grands groupes intégrés et des entreprises plus spécialisées. Le Danemark est tourné vers l’international et plus particulièrement vers le Royaume-Uni, en termes d’exportations comme d’investissements. Au Royaume-Uni, les politiques menées pour mieux valoriser l’utilisation de porcs britanniques apparaissent plus difficiles à concrétiser pour les produits transformés que pour le porc frais. En Pologne, le marché de la charcuterie évolue rapidement, sous l’impulsion de groupes étrangers qui s’y implantent.

Keywords: cured meat products, Europe, dry cured ham Mots clés : charcuterie, salaison, Europe, jambon sec Les Cahiers de l’IFIP - Vol 2- n° 2 - 2015

1

Cured meat products in Europe: main characteristics of the different producer countries

4 000 3 566 Introduction 3 500

5

15

25

World production of cured meats

STG Serrano : 15 millions, 40%

4,5 millions Germany, Italy, the United Kingdom, Poland dont 2,7 millionsand > 12 Spain, mois 12% 700 000 consorzio Serrano along with France, are the six mainetproducers of cured meat products in Europe. They amount to 72% of European pro0 5 10 15 duction which reached 14.7 million tons in 2013.

Porc Ibérique

Germany is the leading producer, followed Répartition desby 33far millions de jambons secs italiens

by the United Kingdom and Poland, two countries where cured meat products containing meats other in partiParme : 9 millions Santhan pork, 6 millions

0

Daniel

18%

2 500 2 000

1 487 1 406

1 500

1 224

1 180 1 039

1 000

ar k

20

Répartition des 37 millions de jambons secs espagnols

27%

3 000

500

Da ne m

230

5

10

15

Porcs certifiés AOP

Graph 1: Production of cured meat products all taken together (cured pork products and other species)

cular poultry, occupy a significant position (nearly 40% of theSpain tonnages - Iberianproduced pig > 7kg in the United Kingdom). 24 French cured meat production was more than 1 million Italy - San Daniele AOP 13 tons in 2013 (Graph 1). Italy - Parme AOP

12

Spain - Serrano Consorzio Production profile

9

Spain - Serrano STG

7

Products of the sausage type whether cooked, dry cured 5 10 contribution 15 20 orSource : readyIFIP toestimates cook, make0 a significant to25the cured meat production of the variousMonth countries. But several country profiles can be identified concerning the types of products and their diversity. The average costs of “exfactory” products can be used as a marker for the average quality of the products, even if the notion of average must be treated very warily, given the diversity it can conceal. This average cost differs greatly from one country to ano17 millions ther (Table 2). 45% Denmark, the United Kingdom and Poland are characterized by lower average prices for cured meat products 20 25 30 35 40 than the European average (4.26 €/kg in 2013). The price Porc blanc Source : estimations IFIP is particularly low in Poland (2.65 €/kg). d’après Eurocarne, ASICI, IPQ et ASSICA

In addition to the considerable proportion of processed products containing 15 millions poultry, cured products of the bacon 45%

Estimated share of processed products

20

25

30

35

40

United Poland France Porcs légers (Italie ou importés) Kingdom

GermanyPorcsSpain Italy lourds hors AOP

Consumption (kg carcass/inhabitant equivalent)

ar k

Source : IFIP from Eurostat

Table 1: Consumption of pork and estimate of the proportion of processed products in 2013

Indicators

nm

De

Fr an ce

I ta ly

ai n

Un Ger m ite an d y Ki ng do m

0

Sp

Fr an ce

10

An analysis was carried out on the production and strucMois turing of the cured meat products sector, its operation and the major companies in the countries chosen by the project, to examine its major characteristics and performances. Better knowledge of the cured meats link in various countries must make it possible to improve France’s positioning vis-à-vis its competitors.

3 566

52.7

52.5

38.1

24.1

46.4

32.2

65-70%

60-65%

55-60%

75-80%

50-60%

70-75%

Source: IFIP estimates from national sources

Distribution of the 37 million Spanish dry cured hams

Table 2: Average estimated industrial prices of cured pork products in 2013 in €/kg STG Serrano : 15 million, 40%

Poland 2.65

0

4,5 million 12%

Denmark 3.465

which 2,7 million > 12 moths United and 700 000 consorzio Serrano EU

Kingdom 10 4.09

15

4.26

Iberian pig

17 million 45%

Germany 20

4.27

Spain

25

White pig

4.97

Distribution of the 33 million Italian dry cured hams

2

Les Cahiers de l’IFIP - Vol 2- n° 2 - 2015 Parme : 9 millions 27%

San Daniel

6 millions 18%

15 millions 45%

Italy 30

5.74

France 35

5.7740

Source: IFIP estimates Source: IFIP fromfrom Eurostat Eurocarne, ASICI, IPQ et ASSICA

2015 -Ifip-Institut du porc - All rights reserved

0

Source : estimation IFIP

I ta l ie

pa gn e

Es

Al le

m ag Ro n ya um e eUn i Po lo gn e

companies are unevenly spread over the national territory. In Europe, a clear gradient can be seen, between models Source : IFIP d’après similar to the French situation andEurostat situations that are the complete opposite (high concentration, integration with slaughtering/meat-cutting, limited added-value and wealth of range, dominant strategy of price competitiveness …). This study aims to characterize the cured meat product sector in -several of the European Union, from Espagne Ibériquecountries > 7kg 24 among the major ones. Spain, Poland, Denmark, Italy, Italie - San Daniele AOP 13 Germany and the United Kingdom have been selected. Italie - Parme AOP 12 Depending on the countries, 55 to 80% of the pork proEspagne Serrano Consorzio 9 ducts -consumed are in processed form, mainly as cured Espagnethe - Serrano STG eaten fresh 7 (Table 1). products, rest being

3 500

Po la nd

3 000 As 2a500link between the slaughterers/meat-cutters and 000 the2 distributors, meat product sector makes a 1the 487 cured 1 406 1 224 180 1 039 1 500 contribution to the level valuable of1 competitiveness and 1 000 dynamism of the pork sector as a whole. 230 500 In France, this sector is not very concentrated and the 0

million tons

milliers de tonnes

4 000

Cured meat products in Europe: main characteristics of the different producer countries

2015 -Ifip-Institut du porc - All rights reserved

under a quality label. As in Spain and Italy, typical regional products are important in Germany, with 15 products under PGI (Protected Geographical Origin), including 5 dry cured hams. Among them, Black Forest ham (Schwarzwälder Schinken) accounts for large volumes. Germany also has a text regulating cured meat products, in particular defining their physical and chemical criteria, but there is not very much information on the manufacturing processes and the levels of product quality. In comparison, French cured meat production appears highly diversified in terms of products and levels of quality (Label Rouge, PGI …). The average production price is close to that of Italy. What is more, cooked ham is an important element of French production.

The dry cured ham market in Spain and Italy 4 000 3 566

3 500 of dry hams varies greatly depending on the The quality 000 used (breed, feed, weight and age at slaughter fresh3meat 500 and the maturation time (from a few weeks to of the2 pigs) 2 000 or more). 24 months 1 487 1 406

1 500

1 224

1 180 1 039

k

ar

nm

De

Fr an

Ita

ce

ly

n

Sp

ai

d

Po l

an

m

do

ng

ite

d

Ki

Ge

rm

an y

Italy 1and 000 Spain respectively have 13 and 9 dry cured hams protected by an official European quality sign 500 230PGI (Protected 0 Geographical Indication) or PDO (Protected Designation of Origin). The Serrano ham is protected by a TSG (Traditional Specialities Guaranteed) which guaSource : IFIP from Eurostat rantees a recipe but not a geographic origin) and a draft PGI was drawn up in late 2014. In Spain Iberian products are also protected by a national standard, ‘la norma de Un

k

m

ar

ce

ne

Da

Fr an

lie

Ita

gn e

pa

Es

Al le

m ag Ro n ya um e eUn i Po lo gn e

milliers de tonnes

type occupy a relatively important place in the United Kingdom. In the three countries, there are few products with a European quality label. The range tends however towards more segmentation and a rise in quality, in particular in Poland, where the consumer trend is progressively moving towards more qualitative products. In Denmark, Poland and the United Kingdom, there are no standards or statutory texts fixing rules on recipes or the denomination of cured meat products. For the last two countries, the quality of the products is governed by “private” standards set between an industrialist and his different customers. Dry cured products with maturation times that can be long (ham/shoulder) or short (sausages, chorizo, coppa, etc.), occupy an important place in Italy and Spain. The proportion of cured, dried and smoked cuts is not negligible in the other countries, but it especially concerns cured products 4 000 3 566 like3bacon 500 (the United Kingdom and Denmark) and the minimum 3 000 drying times are not defined (Germany). The 500 quality image of Italian and Spanish cured meats very2high 2 000 1 487 1 406Segmentation is important in masks great heterogeneity. 1 224 1 180 1 039 1 500 particular 1 000 for dry hams (cf following part). With France, 500 the average industrial prices of Italian and Spanish230cured 0 meat products appear among the highest in Europe. Italy and Spain have a reference document fixing the denominations and the principal characteristics of processed Source : IFIP d’après Eurostat products (recipes, ingredients, physical and chemical characteristics, length of maturation of dry cured hams, etc.), and quality terms for certain products (in particular hams). These texts however appear less exhaustive and precise than the French “Code des usages”. Espagne -isIbérique > 7kg Germany characterized by the very great variety of24its Italie - Sanproducts Daniele AOP 13 of the grain, cured meat (formats, recipes, size flavors…), dominated by products in casings Italie - Parme AOP 12 (Würste), but also cooked hams, dry cured products, pâtés and products Espagne - Serrano Consorzio 9 in jelly, etc. But the variety of the sausage products is the Espagne - Serrano STG 7 result of fairly standardized manufacturing processes, and 0 5 10 15 20 25 enables the carcass Source : estimation IFIP to be valorized to the full. In terms of Mois the types of manufactured products, in particular those in casings, the German and Polish cured meat products present similarities. The level of product quality varies widely, from “budget” articles intended for the hard discount sector to products

million tons



Spain - Iberian pig > 7kg

24

Italy - San Daniele AOP

13

Italy - Parme AOP

12

Spain - Serrano Consorzio

9

Spain - Serrano STG Source : IFIP estimates

7 0

5

10

15

20

25

Month

Graph 2: Minimum production time for hams

Table 3: Characteristics of the rearing and slaughter of PDO and Iberian pigs

Répartition des 37 millions de jambons secs espagnols

Labels Italian PDO

Genetic type of the pigs

STG Serrano : 15 millions, 40%

4,5 millions 12%

0 Spanish Iberian

Largedont White ; Landrace ; 2,7 millions > 12 mois Duroc crossing et 700in 000 consorzio Serrano 5

Age at slaughter

Live weight at slaughter 17 millions 45%

9 months

100% 10 Iberian; 15 (1) 10 20 to 14 months25 Iberian/Duroc cross Porc Ibérique Porc blanc

160 kg

100% 30 Iberian pigs 35 - 108 kg 40 50% - 75% Iberian pigs - 115 kg Source : estimations IFIP

((1) According to the breeding system: cebo (intensive), cebo de campo (intensive outdoor installations), bellota (extensive) d’après Eurocarne, ASICI, IPQ et ASSICA  Répartition des 33 millions de jambons secs italiens Source: IFIP from consortium of Parma and San Daniele and ASICI Parme : 9 millions 27%

San Daniel

6 millions 18%

15 millions 45%Les Cahiers de l’IFIP - Vol 2- n° 2 - 2015

3

ar k

5,0

20

Million pieces or heads*

30

4

s de pièces ou têtes

12,0

8,0

8,7

12,5 5

10 12,3 12,1 PDO certified pigs

8,0

ar k nm

De

12 2011

2012 9

0 5 White pig

4,1

4,1

2013

2014

Pigs 10

15

20

25

Month 4,1 4,3

4,5

4,8

5,0

2003 2004 25 2005 2006 2007 30 2008 2009352010 2011 2012 40

blanc * NumberPorc of hams, shoulders or pigs certified “RIBER” _ (control system IFIP set up Source : estimations in parallel to the 'norma de calidad d’ _de productos ibericos') year après Eurocarne, ASICI,during IPQ etthe ASSICA Source : IFIP from Eurocarne, Confecarne et ASICI

Graph 4: Production of dry cured(1)hams and shoulders in 15Indice millions de rentabilité Spain: 45% white pigs and Iberian pigs Parme 9 -11 kg

Sans appellation > 9kg

export, production of cooked hams, etc.), and the end pro20 25 30 35 40 duct is marketed at least 7 months later. So the supply can Porcs lourds hors AOP Porcs légers (Italie ou importés) be adjusted more quickly in the event of overproduction or under production.

mai

janv.

mars

35

nov.

juil.

sept.

30

mai

janv.

25

mars

mai

mars

janv.

nov.

sept.

20

nov.

17 million 45% 40

White pig

(1) Rapport entre le prix du jambon frais et le prix du jambon sec sorti usine IFIP calculé par le Crefis Source: estimates from Source : IFIP d’après ASSICA, IPQ Crefis Eurocarne, ASICI, IPQ et et ASSICA

152,3 11,5

7,9

Fr an ce

I ta ly

ai n Sp

13

15Profitability millions index (1) 45% Parme 9 -11 kg 20

25

Non-certified PDO heavy pigs 2,2

No appellation > 9kg 30

2 1,9 1,8

35

Light pigs (Italy or imported)

Graph of dry cured hams2,1 in Italy and Spain in number of cuts, estimate 2013 8,6 3: Production 8,3

Les6,0 Cahiers de l’IFIP - Vol 2- n° 2 - 2015 4,0

3,7

2,4 24

2,0

36,3 37,0 37,5 33,2 33,7 34,4 32,9 32,6 32,3 32,0 17 millions 45%

25

Parme :Production 9 millions San 6 millions 27% Daniel 18% Hams certified PDO (nb) Pigs certified PDO (nb) 0 12,5

2,3

40

2015 -Ifip-Institut du porc - All rights reserved

Distribution of the 33 million Italian dry cured hams

10,0

3,9

juil.

1,8 STG Serrano : 15 million, 40% 1,7 which 2,7 million > 12 moths and 700 000 consorzio Serrano 1,6 2011 2012 2013 2014 5 10 15 Iberian pig

14,0

3,6

35

20 20

mai

2010 0

2,6

1,9

mars

0,0

2,6

Italy - Parme AOP

0,0

4,5 million 12%

2,0

5,0

4,7

2

6,0 Distribution of the 37 million Spanish dry cured hams 4,0

4,7

Italy - San Daniele AOP 1,0

juil.

Millions de pièces

Millions de pièces ou têtes

7,9

2,9 Spain 2,0 - Iberian pig > 7kg

40

Répartition des 33 millions de jambons secs italiens

8,0

5,5

3,0

Source : IFIP estimates

Source : IFIP d’après Eurocarne, Confecarne et ASICI

8,3

4,8

45

Serrano : 15 millions, To the 37 million dry cured hamsSTG produced every year40% 4,5 millions 20 dont 2,7 millions > 12 mois 12% in Spain,2003 must be 2005 added 102007 million dry cured shoulders 2004 2006 2008 2009 2011Serrano 2012 et 700 0002010 consorzio (about 50% white pig and 50% Iberian pig), a product that * Nombre de jambons, d’épaules ou de porcs certifiés « RIBER » 0 5 10 15 can be substituted for dry cured ham. The Italian produc(système de contrôle mis en place parallèlement à la norma de calidad de productos au cours de l’ais nnée Porc Ibérique tion of dry ibericos) cured shoulders not known.

8,0

4,6 4,8

SpainHams - Serrano STG Shoulders 7

32,9 32,6 32,3 32,0

In recent years Spanish Iberian ham and Italian PDO hams have experienced some difficulties, made worse by the low Parme :Production 9 millionsto demand. San 6 millions elasticity of supply in relation Between the 27% Daniel 18% birth of the piglet and the marketing of the dry cured ham, Jambons certifiés AOP (nb) Porcs certifiés AOP (nb) at least will have elapsed for Parma PDO and 14,0 21 months 0 10 152,3 12,5 12,5 5 12,3 12,1Serrano hams or 30 months for Iberian ham. For the dry 11,5 Porcs certifiés AOP 12,0 2,2 hams with no appellation, the decision to start production is taken are salted (the alternatives being 10,0 when 2,1 8,7 the hams 8,6

5,1

Source : IFIP from Eurostat4,8 4,8

2008 Consorzio 2009 2010 Spain - Serrano

25

The hams under a quality label occupy an important place Porc blanc (Graph 3): 45 • In Italy, 12 million PDO hams are produced annually, i.e.40approximately 36% of the dry 4,1cured hams produced 4,1 4,1 in Italy (In number of hams). 3,7 3,9 4,3 4,5 to 3,6 Iberian 4,85 mil5,0 • In35 Spain, ham production amounts lion 30 hams (12% of the total), and TSG Serrano ham to 37,5 secs espagnols Répartition des 37 millions jambons 36,3de37,0 15 million (40%). 33,2 33,7 34,4 25

5,1

sept.

15 Porcs Mois

Iberian pig

4,2

4,0

Million pieces

10

5,2

4,6 5,0

Po la nd

6,0

Millions pièces ou têtes*

5 Epaules

1 180 1 039 230

Un Ger m ite an d y Ki ng do m

Source : IFIP d’après Eurostat

0

1 224

0

calidad de derivados ibericos’; and about twenty Spanish Porcs ibériques industrialists have created a private label, the Consorzio 6,0 5,5 5,2 to promoting 5,1 Serrano, dedicated the Serrano ham5,0on 5,1 4,8 4,8 5,0 4,6 4,8 4,8 5,0 4,6 4,7 4,7 foreign markets. 4,2 guarantee a minimum ham production These4,0standards Espagne - Ibérique > 7kg 24 time 3,0 (Graph 2). According to expert opinion, the average Italie - San Daniele AOP 13 production time for a2,9 Serrano is 9 months, and for 2,4 a 2,6 ham 2,6 2,0 2,3 2,0 Italie - Parme 16 AOPand 18 months. The 12 breeding Parma ham between and 1,0 of pigs certified for the production of PDO hams slaughter Espagne - Serrano Consorzio 9 and Iberian hams must also satisfy certain characteristics 0,0 Espagne - Serrano STG 7 (Table 3). 2008 2009 2010 2011 2012 2013 2014 Source : estimation IFIP Jambons

1 487 1 406

500

Da ne m

Fr an ce

I ta l ie

pa gn e

Es

Al le m ag Ro n ya um e eUn i Po lo gn e

million tons

milliers de

3 000 2 000 1 487 1 406 2 500 1 224 1 180 1 039 1 500 2 000 1 000 230 500 1 500 Cured meat products in Europe: main characteristics of the different producer countries 0 1 000

2,6

2,6

2,3

1,0 0,0

2,0

Million pieces o

2,9

2,0

2,4

2008

2009

2010

2011

2012

Epaules

2013

2014

0,0

2008

Porcs

Millions de pièces

In Spain the Iberian has been in difficulty since 2008 /2009 Porc blanc whilst45there was a surplus supply of Iberian dry cured hams and shoulders. This surplus had the following conse40 quences: 4,1 4,1 4,1 • Iberian hams 3,7 and shoulders, which had been placed in the 3,9 4,3 4,5 4,8 5,0 35 3,6 dryer two or three years before, continued to be marketed (Graph 30 3) at the cost of many promotion campaigns. 36,3 37,0 37,5 34,4 dry The price Iberian ham fell by 32,9 2.5 €/kg 33,2of 33,7 32,6 between 32,3 32,0 200825and 2009. • The20price of Iberian cebo pork fell to the same level as 2003(E) 2004 2005 2006 2007decrease 2008 2009 2011 2012 white pork causing a sharp in 2010 the slaughter of* Nombre Iberian between (ASICI, 2014). The depigs jambons, d’épaules2008 ou deand porcs2009 certifiés « RIBER » (système de contrôle mis en place cebo parallèlement à la norma de recovered calidad price difference between and white pork de productos ibericos) au cours de l’année in 2010 /2011 then in 2013 but the number of slaughters Source : IFIP d’après Eurocarne, Confecarne et ASICI continued to fall until 2013. • Iberian hams came into competition with white pork hams whose production dropped sharply between 2008 and 2009 (Cruz, 2010).Production In addition to the difficulties of Jambons Iberian ham, fewer hams certifiés enteredAOP the(nb) dryers Porcs certifiés AOPwhite (nb) pork 14,0 of the high prices of fresh ham between 2010 and because 2,3 12,5 12,5 12,3 12,1 2013 and the competitive prices of dry cured11,5 shoulders 12,0 2,2 (Martinez, 2015). Millions de pièces ou têtes

2,9

2,0

2,6

2,4

2,6

2,3

2,0

Cured meat products in Europe: 1,0main characteristics of the different producer countries Jambons

10,0

3,0

2009

2010

Hams

2011

2012

Shoulders

2013

2014

Pigs

In Italy, the slaughter of pigs certified for the production of dry cured PDO hams fell by 800,000 animals White pig between 45 2010 and 2014 (Graph 5). The production of PDO certified hams dropped by a million between 201040and 2014. 4,1 4,1 3,7

3,9

4,1

3,6 4,5 4,8 with 5,0 The 35 Italian PDO sector suffered from 4,3 competition hams with no appellation and from the difficulty in pas30 37,5 (fresh hams) to the sing on the price rise of36,3 raw 37,0 material 33,2 33,7 34,4 32,9 32,6 32,3 32,0 distributors. Since 2013 the profitability index calculated 25 by Crefis (relationship between the ex-factory price of dry cured20ham and the price of fresh ham) has regularly been 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 lower than that of hams with no appellation (Graph 5). * Number of hams, shoulders orpower pigs certified “RIBER” _ (control The reduced purchasing of households ledsystem themsettoup in parallel to the 'norma de calidad _de productos ibericos') during the year reduce their consumption of higher value products which from Eurocarne, Confecarne et ASICI they substituted withSource : basicIFIP products with no appellation. Between 2012 and 2013, the price of cured ham with no Indice de rentabilité (1) appellation more than 9 kg (trade stock exchange price for Parma ham) bySans 49 cts/kg (from 5.29 €/kg to Parme 9 -11increased kg appellation > 9kg 5.76) whereas Parma ham lost 12 cts/kg (going from 7.57 €/kg to 7.29 €/kg). Million pieces

Millions pièce



3,0

The Italian PDO sector has also been affected by the evolution of pig genetics: the use of hybrid breeds has greatly In 2014, the surplus was finally reduced after five conse8,0 2 increased in recent years to the detriment of local breeds cutive years of decrease of the slaughter of Iberian pigs. 6,0 1,9 (CRPA, 2015). These pigs have better technical and ecoThe stock was even in deficit whereas domestic demand 4,0 1,8 nomic results and thus reduced production costs, but the was increasing slightly (Martinez, 2015): the prices meat is leaner which makes it less suitable for salting and of Iberian dry hams and shoulders went up to levels 1,7 2,0 drying/maturing (Piasentier et al., 2015). One expert we higher than those of 2008. The slaughter of Iberian pigs 1,6 0,0 met considered it regrettable that « lower quality Parma increased again. The market of dry ham from white pigs 2010 2011 2012 2013 2014 hams should often not be as good as the best of non-certified was freed from competition from Iberian ham, and this valorization andcalculé image ofCrefis the encouraged more fresh white pork hams to be sent into (1) Rapport entrehams, le prix duwhich jambonpenalizes frais et le prixthe du jambon sec sorti usine par le Source : IFIP d’après ASSICA, IPQ et Crefis whole of the sector ». the dryers. 2,1

mars

mai

March

May

nov.

janv.

juil.

sept.

mai

mars

nov.

janv.

January

2012

2013

2014

(1) Relation between the price of fresh ham and the price of dry cured ham ex-factory calculated by the Crefis Source: IFIP according to ASSICA, IPQ and Crefis

1,6

November

2011

September

1,7 July

2,0

May

1,8

March

4,0

January

1,9

2010

juil.

2

6,0

0,0

sept.

2,1 7,9

November

8,0

8,0

September.

8,3

July

8,6

May

8,7

No appellation > 9kg

2,2

March

Millions de pièces ou têtes

2015 -Ifip-Institut du porc - All rights reserved

10,0

11,5

January

12,1

November

12,3

September

12,5

12,0

Parme 9 -11 kg 2,3

July

12,5

Hams certified PDO (nb)

May

14,0

Profitability index (1)

March

Pigs certified PDO (nb)

mai

janv.

Production

mars

nov.

7,9

sept.

8,0

juil.

8,3

mai

8,6

mars

8,7

Graph 5: Production and profitability index of dry cured hams in Italy

Les Cahiers de l’IFIP - Vol 2- n° 2 - 2015

5

Cured meat products in Europe: main characteristics of the different producer countries

Typology of the main operators and links with the upstream sector he organization of the cured meats sector in the various countries studied also displays important differences (Table 4).

Germany and Italy: predominance of family capital In Germany and Italy, three types of operators share the market: companies with family capital, slaughterer-meatcutter subsidiaries and subsidiaries of multinationals. The principal companies all offer a wide product range. In the two countries, the processing industry is still mainly made up of family businesses that have specialized in the cured meats sector for several decades, some of them consolidating their position as leader by domestic growth and the

acquisition of other firms (Table 5). According to expert opinion, the cured meats sector should become concentrated in the years to come, in particular in Germany. Financial links with the upstream sector are still not very well-developed, but have recently been strengthened with share acquisitions in the cured meats sector by some slaughterer/meat-cutters. The companies absorbed in this way have become subsidiaries of the slaughterer/meat-cutter groups but remain independent in their governance: • In Italy, Veronesi, a firm that is integrated from feed to slaughter-cutting (pork, beef and poultry), bought two family businesses specializing in cured meats in 1985 (Montorsi) and in 2002 (Negroni). The Veronesi group has its own pig-farms and one of the largest slaughterhouses in Italy (about 700,000 pigs a year). • Since 2011, Tonnies (17 million pigs slaughtered in 2014), has been acquiring shares in Zür Mülhen, the lea-

Financial links with slaughtering-meat cutting

Concentration Top 3

Weak (50%

Strong (30 - 40%)

About 50%

Main players in the processing industry Family businesses (Reinert, Stockmeyer, etc.) Slaughterer subsidiaries (ZurMülhen/Tonnies, Gustoland/Westfleich) Germany Multinationals (Herta/Nestlé, Bell) Cured pork plants of slaughterer/meat-cutters

Integrated groups (1) (2) private/foreign capital (Tulip, Craanswick, etc.) United Kingdom Specialized businesses (Direct Table, Debbie & Andrews, etc.) Poland

Integrated groups (2) private/foreign capital (Animex, Sokolow, etc.) Family businesses

Average (nc)

20%(3)

France

Multinationals (Aoste/Campofrio, Herta/Nestlé) Slaughterer subsidiaries (Brocéliande/Cooperl, Jean Floch) Mass distribution subsidiaries (Monique Ranou, Kermené) Specialized businesses (Fleury-Michon, Turenne Lafayette)

Strong (40%)

20-30%

((1) Integration of production with processing (2) Integration of slaughtering-meat-cutting with processing (3) Share of the top three companies in the whole of the Polish meat industry

6

Les Cahiers de l’IFIP - Vol 2- n° 2 - 2015

Source: IFIP estimate

2015 -Ifip-Institut du porc - All rights reserved

Table 4: Characteristics of the operators in the processing industry, % of the national activity of the processing sector



Cured meat products in Europe: main characteristics of the different producer countries

ding German company for cured meat products. In 2014, the group bought up the cured meat business of Nolke, a specialist in poultry. • The third largest slaughterer of pigs in Germany, the Westfleisch cooperative (7.6 million in 2014) took over the Gustoland company in 2004 and the Aldenhoven company in 2014 (about 200 tons a week of products in casings, salted products, etc.). In Germany, several slaughterer/meat-cutters also have a cured meats plant on site that is more specialized. This makes it possible to add optimum value to the carcass (trimming

off-cuts, etc.). There is no precise knowledge as to the proportion of cured meats from slaughterer/meat-cutter sites. In Italy, the slaughtering-cutting industry’s involvement in the cured meats sector is greater on the PDO dry cured ham segment. Most of the main pig slaughterers have their own dryers to add value to their PDO certified fresh hams (Table 6). Between 3 and 5 million dry cured hams are produced annually on sites belonging to slaughterer/ meat-cutters, i.e. between 5 and 15% of Italian production. Some slaughterers offer a wider range but volumes remain modest (less than 10,000 tons each) compared to

Table 5: Main Italian and Germany cured meat producers

Italy Type of operator

Family businesses

Slaughterer subsidiary Subsidiaries of multinationals Other

Germany Turnover 2013 (m€)

Name

Type of operator

Turnover 2013 (m€)

Name

Beretta

690

Kemper

400

Ferrarini / Vismara

330

Reinert

350

Rovagnati

252

Wolf Firmengruppe

280

Citterio

230

Sutter

246

Parmacotto

113

Steinemann

230

Veroni

100

Vinzenz Murr

208

Negroni (Veronesi)

313

Ponath

205

Fiorucci (Campofrio)

220

Zur Mulhen (Tonnies)

825

Gustoland (Westfleisch)

385

Bell Deutschland

393

Herta

175

Stockmeyer (Heristo)

255

Family businesses

Slaughterer subsidiaries

Rigamonti (JBS) GSI

656

Italia Alimentari

144

Multinationals Other

Source: IFIP from ICEX, Allgemeiner Fleissch Zeitung, press and company websites

Table 6: Activity of the main Italian slaughterer/meat-cutter companies, estimate 2013

Slaughter of pigs (n° of animals)

Ham dryers (nb.)

Production of dry cured hams (nb.)

Production of other cured meats

Coopérative Prosus

750 000

1

120 000

-

Groupe Hammers (Martelli)

700 000

3

375 000

Cooked ham

Levoni (Mec Carni)

600 000

2

200 000

Salt cured meats (8 000 t. / year)

Annoni

550 000

3

350 000

-

Sassi

500 000

4

800 000

-

CLAI

350 000

nd

nd

Salt cured meats (5 000 t. / year)

Aimaretti

260 000

2

nd

-

Valtiberino

250 000

5

350 000

Salt cured meats

2015 -Ifip-Institut du porc - All rights reserved

Company

Source: IFIP from ISMEA, press and company websites

Les Cahiers de l’IFIP - Vol 2- n° 2 - 2015

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Cured meat products in Europe: main characteristics of the different producer countries

the whole of the sector (1.2 million tons). Some meat curers (Rovagnati, San Michele) have their own pig farms, giving them better quality control over part of their supply. The sector is also characterized by the presence of multinationals like Herta and Bell in Germany or Campofrio in Italy (since 2011 with the purchase of Fiorucci).

In addition to the slaughterer-cutters, more specialized operators are also present such as 3 Stjernet (3 stars) and Hanegal (organic cured meats) in Denmark, or Direct Table (salt cured products) and Debbie and Andrew (sausages) in the United Kingdom. In Poland, the sector also shows this duality but is less concentrated. Apart from PKM Duda, the principal slaughterers (Animex, Sokolow, Pini, Biemackin etc) have a business in processing, whose share in the national total has not been able to be specified. Alongside the major groups, the Polish sector has very many small companies. Foreign capital is very much present in the British and Polish sectors.

Denmark, United Kingdom and Poland: a dual sector In the United Kingdom and Denmark, the processing sector is highly concentrated and is structured around two distinct types of operators: large integrated groups and smaller, more specialized companies. Pig slaughter and cutting is highly concentrated. About 70% of British pigs are slaughtered by only four companies (Tulip, Neerock, Cranswick and KarroFood) and two Danish groups perform 90% of slaughters in Denmark (Danish Crown and Tican). These companies are vertically integrated from breeding to processing or from slaughter-cutting to processing, as processing accounts for a significant portion of their income (Tables 7 and 8).

Spain: an integrated and diversified model More than 50% of Spanish cured meat is produced by companies that have a financial link with the sector upstream (IFIP estimate according to Alimarket). The operators can be classified in four major units, depending on their business in fresh meat and cured meats (Graph

Table 7: Activity of the main British cured meat operators, 2014

Activity Company

Capital

Integrated herds (% needs covered)

Tulip

Danish Crown (DK)

Dalehead(2)

2,4 million

17%

Neerock / Farmers Boy

Morissons (UK)

-

1,5 million

15%

Craanswick

UK

20%

1,8 million

5%

Karro Food

UK

10%

2,4 million

nd

Moy Park(3)

Mafrig (BR)

-

-

13%

Kerry Foods

Kerry Group (IR)

-

-

6%

Direct Table

Tican (DK)

-

-

3%

Slaughter-meat Processing (estimated cutting (N° of animals) market share )(1)

(1) Estimated market share on the cured meats market (value) (2)Tulip is only involved in breeding via its subsidiary Dalehead (supplier of Waitrose) and the organization of the producer BQP which belongs to it and which supplies all Dalehead’s requirements in pigs Source: IFIP from IbisWorld, companies and specialized press

Table 8: Activity of the main Danish operators in the pig industry, 2014

Company Danish Crown Tican

Activity Nb cooperators / Slaughtering Processing (% of breeders DK (animals) turnover(1)) 8 278

14,7 million

38%

Sokolow (PL) ; Tulip Food (DE, SE) Tulip Ltd (UK) ; Plumrose (USA) ;

-

277

1,9 million

46%

Direct Table (UK) ; Pro-Pak (PL)

87%

(1) Turnover of all of the activities of the group (inside and outside Denmark) (2) Having a processing activity

8

Internationalization Subsidiaries outside % activity Denmark(2) outside Dk

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Source: IFIP from companies

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(3) Specialized in poultry



Cured meat products in Europe: main characteristics of the different producer countries

Source: IFIP from Alimarket

400 000 Duriber/Vall Companys 350 000

Multiple activity groups Processors who invest in the upstream

Grupo Jorge

300 000 Fresh meat (tons)

Slaughterer-meat cutters who invest in the downstream

Batallé-Juia

Specialized companies Monter/Costa Brava

250 000

El Pozo

200 000 150 000 Incarlopsa

Famadesa

100 000

Toni-Josep 50 000

Guissona

Coren Tello

Campofrio

Noel Comapa

0 0

20 000

Casa taradellas

Argal /Monells

40 000

60 000

80 000

100 000

120 000

140 000

160 000

Cured meats (tons)

Graph: Volumes of fresh meat and cured meats marketed by the main Spanish operators

Table 9: Description of the operators in the Spanish cured meats sector

Fresh Cured Type of operator meat meats Imports activity in the United Kingdom activity 280

250

266

260

Specialized 240

-

245

xxx

These companies have 230no financial links with slaughtering-meat cutting and are supplied with fresh meat by external suppliers. 210 E.g. : Argal/Monells, 190 Arroyo, Casademont, Ramon Ventula, Collel, Volatin 1 000 tons

220 1 000 tons

Description Production and export in Denmark

215

200

Production of cured meat products

170

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Exportin salted and saltupstream cured products Some Spanish processors the sector with the 150 have invested 180 ExportGenerally other curedspeaking, meat products aim 181 of controlling part of their supplies. they have a 130 160 cutting plant and are110 co-shareholders of service abattoirs. The meat used Processors who comes partly or entirely from cutting plants Salted and salt cured productsin the processing facilities 140 90 invest in the xcured meat products xxx Other belonging to these companies. The volumes of fresh meat marketed are 120 70 upstream low. 100 50 1 2011 / abattoir 2012 2013 2008 2009 2010 2011 2012 2013E.g. 2014 : Noel / abattoir Olot 2008 Meat1 2009 ; Casa 2010 Taradellas Esfosa2014 ; Campofrio / Carnes Selecta Source: IFIP from trade data 2000 ; Canpipork / abattoir el Navazo1 ; etc.

Slaughterers-meat cutters who invest in the downstream sector

Hams:

Multiple activity groups 12 million 14%

xxx

PDO

x

declassified

xx

4M 4M 5% 5%

6M 7%

xx

0 10 20 30 ((1) The salt cure operator is a co-shareholder in the abattoir

Some leaders in the pig meat market have a modest activity (less than 5,000 tons a year) which enables them to valorize part of their production at a more thorough stage of development. The majority of them have in particular invested in a segment with high added value, that of dry cured hams. E.g. : Vall Companys, Batallé, Jorge, Toni-Josep, Famadesa, etc. These companies are present on both the fresh meat and the cured meats In general these groups developed these activities in heavymarkets. non-certified pigs imported light pigs parallel (slaughter, cutting and processing) on a single industrial site. This is the case of ElPozo and its industrial complex of Alhama (Murcia): 50% 62which million leaves the cutting plants is processed on site, the of the fresh meat remainder is sold 70% externally. E.g. : ElPozo, Incarlopsa, Guisonna 40

50

Hams million

60

70

80

90 Source: IFIP

Source: IFIP from IPQ and CRPA estimate

Les Cahiers de l’IFIP - Vol 2- n° 2 - 2015

9

Cured meat products in Europe: main characteristics of the different producer countries Source: IFIP from Alimarket

400 000 Duriber/Vall Companys

(Fleury Michon, Turenne Lafayette) the large-scale Slaughterer-meat cutters who invest in theand downstream distributors (Monique Multiple activity groups Ranou/Intermarché, Kermené/ Leclerc). Processors who invest in the upstream

Monter/Costa Brava

250 000

Specialized companies

Vertical integration is more complex in certain cases such as that of200 Monter (cured meats) and Costa Brava (slaugh000 ter/meat-cutter) belonging to the Cañigueral group (sole 150 000 shareholder since the end of 2014). Commercial links do exist, but they are not only bilateral: Costa Brava provides Incarlopsa Famadesa 100 000 requirements 25% of Monter’s in raw material and Monter Guissona Coren Toni-Josep buys 8% of Costa Brava’s total production (Expansion, 50 000 2014). In Spain, there are also companies which offer ham Tello Noel drying services (Martinez, 2015). Comapa

0

0

20 000

Supplies of fresh meat Strategies in terms El Pozoof supply depend on the structure of the sector (strong integration of processing with the sector upstream or not) but also on the production profile (prevalence of sausage-type products without marked anatomical provenance, importance of PDO type sectors …) and on the size of the sector upstream (sufficient or not to satisfy processing needs). Campofrio Casa taradellas

Argal /Monells

40 000

60 000

The strategies set up by Spanish companies in terms of production and marketing are multiple: • Breadth of range: most of the major companies propose a wide range of cured meat products but some offer a more restricted range such as the suppliers of the distributer Mercadonna (Casa Taradellas - Fuet, cooked ham, pâtés; Incarlopsa - cooked sausages and dry cured hams and Iberian cured products; Monter, salted products in casings). Others specialize in the production of dry cured Imports in the United Kingdom hams (Comapa, Arroyo, Ramon Ventula, Volatin, etc). 280 26670% • Rates of sliced products: from 3% (Comapa) to 260 (Monter) according to companies. 245 240 the Guissona cooperative (which has its own chain • Export: 220 and the suppliers of Mercadonna (Casa Taradellas, of stores) 215 200 Incarlopsa and Monter) are above all to be found on the 180 market. Other groups like Campofrio, Casademont, national 181 160 Ventula, Collelle or Sanchez Acarez, make more Ramon Salted and salt cured products than140 50% of their sales turnover with exports.

Kingdom and Italy: 140 000 80United 000 100 000 120 000

160 000

the countries in deficit

Cured meats (tons)

Hams:

12 million 14%

0

10

PDO

declassified

4M 4M 5% 5%

6M 7%

20

1 000 tons

1 000 tons

With self-sufficiency rates of respectively 64% and 53%, Italy and the United Kingdom are largely in deficit in pig meat. The slaughter of pigs in 2014 came to respectively 13.5 and 10.5 million head and is not sufficient to meet the needs of the processors. In the United Kingdom, the pigs slaughtered by the leading groups come from their integrated farms and/or their and export Denmark contracts Production with British breeders. The in sector upstream is very 250 keen to increase the use of British pigs but the processing 230 operators are still very reliant on fresh meat imports, inclu210 ding the groups with their own slaughter-houses. The defi190 cit relates especially to freshofloins (used for the Production curedand meathams products 170 salt cured productsExport and cooked for which the needs salted andham) salt cured products 150 Export other23 cured meat products are estimated at respectively million and 19 million pig 130 equivalents (Bowman, 2012). But certain brands promote 110 a range 90 exclusively from pigs of British origin: Dalehead Other cured meat products 120 (subsidiary of Tulip which supplies the Waitrose distribu70 tor), Suffolk Crown (Direct Table), Walkers (fresh “pre100 50 France 2008 2009 2010Samworth 2011 2012 2013 group), 2014 etc. 2008 2009 2010 2011 2012 2013 2014 mium” sausages by the Brothers IFIP fromEuro trade data The French sector has some large companies andSource: many /Pound sterling parity strongly influences the supply small and medium-size operators, often quite specialized strategies, as a fall in the value of the euro boosts the comand with a strong regional base. The profile of the competitiveness of imported cuts. panies is quite heterogeneous among the multinationals In Italy, integration is not well-developed but interde(Aoste/Campofrio group, Herta/Nestlé), the co-operapendence between the links in the sector is strong on the tive and private slaughterer/meat-cutters (Brocéliande/ PDO dry cured ham segment, where breeders, slaughterer/ Cooperl, Jean-Floch), the specialized family structures meat-cutters and processors are linked by specifications.

heavy non-certified pigs

imported

light pigs

62 million 70%

30

40

50

Hams million

60

70

Graph 7: Origin of the hams processed in Italy, estimates for 2013

10

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80

90

Source: IFIP from IPQ and CRPA estimate

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Fresh meat (tons)

6 and Table 9): specialized companies, processors who 350 000 Batallé-Juia invest in the upstream sector, slaughterer/meat-cutters who invest in the downstream sector and multiple activity Grupo Jorge 300 000 groups.



Cured meat products in Europe: main characteristics of the different producer countries

Heavy pigs which make up 80% of Italian production are mainly reared for the PDO dry cured ham sector and most slaughterers have their own dryers (cf previous part). But Italy is particularly in deficit in hams and the processors import massive quantities of fresh meat from other European countries. The proportion of imported raw hams is about 70% of the total of Italian requirements for cooked and dry cured products (Graph 7).

Germany, Spain and Denmark: The countries in surplus

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n Germany, Spain and Denmark, the pig sector is in surplus. The processing operation is closely integrated into the upstream sector in Spain and in Denmark, so supplies are covered in the domestic market. In Spain, supplies rarely come from abroad for companies that are not vertically integrated. If necessary, supplies are provided “as and when” each week. German operators have few “anatomical” constraints as regards supply insofar as the cured meat sector is dominated by sausage-type products, which makes it easy to enhance the value of the different parts of the carcass. Although the country is in surplus, large quantities of raw meats are imported. The proportion used by processors is not precisely known, as part of what is imported may be re-exported after processing. The pork butchers try to stress the German origin of the products with consumers.

Poland: a deficit that is getting worse In Poland the integrated companies are supplied via contracts with breeders, via traders and from abroad in the form of carcasses or live pigs. Pini primarily finds supplies on the local market, in the same way as smaller cured meat product companies. Imports (primarily fresh meat intended for processing) represent a third of the country’s consumption of pig meat and they are tending to increase.

France In France, cured and salted meat products represent two thirds of the outlets of the pig slaughter and cutting. Cooked ham, particularly appreciated by French consumers, is a basic outlet. But more than a third (36%) of the French uses of ham comes from imports. French pork butchers import boned cuts, mainly from Spain (70% of the total). The Spanish slaughtering companies have established and structured sectors that are especially dedicated to the export of ham muscle to France.

Outlets on the domestic market and sales circuits Structure of consumption The quantities of pork (all products taken together) consumed per capita vary from 24 to more than 50 kg carcass equivalent. Compared to fresh pork, valorization in the form of cured meat products is predominant: in Poland, 50 to 60% of the pork is consumed in the form of processed products, as against nearly 80% in the United Kingdom. The domestic markets of the countries considered are overall “mature”, as cured meat products are already widely developed. In Germany and Spain, the high consumption of pork products has historically supported production dynamics. Growth in the sector is not helped by the difficult economic context which in recent years has posed a problem for family consumption and the development of new consumer trends (vegetarianism, semi-vegetarianism…). The nature of what is eaten has an impact on the cured meats sector, in particular in the United Kingdom (high consumption of salted products of the bacon type made from loin or hams), in Italy (preponderance of cooked and dry cured hams) or in France (high consumption of cooked ham). Historical and cultural eating habits create a particularly high demand for certain cuts, which destabilizes the overall valorization of the carcass and makes it necessary to resort to imports. In Germany, Poland and, to a lesser extent, Spain, consumption is better divided between the cured meat categories, Les Cahiers de l’IFIP - Vol 2- n° 2 - 2015

11

Cured meat products in Europe: main characteristics of the different producer countries

enhancing the value of the various cuts in a balanced way. For these first two countries, the dominant position of “sausages”, which allows for substitutions between cuts of meat, makes it easier to enhance the value of the carcass as a whole.

Structure of marketing circuits on the national market Depending on the countries in the study, eating outside the home accounts for 20 to 30% of outlets on the national market. It is at its lowest in France and Italy, whereas going out to eat is more frequent in the countries of northern Europe (Table 10). When consumers make purchases for consumption in the home, they are still far more likely to use hyper- and supermarkets in the various countries, but with differing presence and degree of structuring. In France and in the United Kingdom, mass distribution, mainly in hypermarkets, accounts for 90% of volumes of cured meat products. Hard discount stores account for only 7% of volumes in the United Kingdom, but they are progressing, unlike in France. Germany is characterized by the significant presence of hard discount, in particular the Aldi and Lidl brand names. The format dominates distribution, whereas there are not very many hypermarkets. In Italy and Spain, mass distribution has clearly developed in recent years, but the traditional circuits still occupy an important position, with around 30% of tonnages. It is in Poland that mass distribution is still the least developed (less than 60% of tonnages in 2013), in spite of the recent progress of the sector, driven in particular by foreign groups. Traditional formats and direct sales are largely developed. In Poland and Italy, many cured meat manufacturers, even large manufacturers, have their own retail outlets. This is also the case of the Guissona cooperative in Spain, which has its own marketing network.

Relations with mass distribution In the various countries, the relations between industrialists and distributors are marked overall by tense power struggles, in a context of strong competition and regroupings between signs at European level to pool some purchases, making economies of scale. The consequent market power of the distributors complicates the valorization of prepared meat products in mass distribution, on the various European national markets. In the United Kingdom, five groups cover 75% of the mass distribution food market. The hyper- and supermarkets are very powerful and trade relations are delicate, but they differ according to the product ranges. On the “standard” products, which are quite similar, and the “budget” ranges, competition between signs is very strong, in a context where hard discount is gaining in market shares. The position of own-brand products is very strong (more than 50% of the home consumption of cured meat products, in value) and short-term “procurement agreements” between signs and industrialists (3 months) are frequent, also causing frequent changes of suppliers. On the more differentiated product ranges, in particular premium ranges, the links with suppliers appear stronger and more durable over the long term. Historical links exist (Waitrose/Dalehead Foods, etc.). Finally, the Morrisons sign is characterized by its particular model, based on its own industrial structures. German distribution too is highly concentrated, as the five principal groups share approximately 75% of the mass distribution market. Among them, the hard discounters occupy a significant position, in spite of a drop since the end of the 2000s, and they have a significant Influence on the movement of prices. Competition between signs is very strong, but the relations between distributors and industrialists are less of a partnership than in the fresh meat sector, which is more concentrated. In addition, several

 

All sales circuits

 

Retail sales

Restaurants

Denmark France Germany Italy Poland Spain United Kingdom

74% 80% 72% 80% 75% 77% 71%

26% 20% 28% 20% 25% 23% 29%

Retail sales circuits Share of the Hyper/ Including HD supermarkets 87% 31% 90% 16% 83% 48% 70%