Major meat companies need to address environmental negligence claims before it harms the bottom line

 

The Cattle Site

16 November 2020

 

Consultancy firm GlobalData says that JBS, BRF and other meat manufacturers need to address environmental negligence claims before retailers cut ties altogether.

 

Following claims that food giants JBS and BRF are contributing to deforestation, with investor network FAIRR landing them with poor ratings for their environmental negligence, big retailers such as Tesco have been pressured to distance themselves.

 

JBS monitors cattle suppliers on 45 million hectares in the Amazon, an area bigger than Germany. If meat manufacturers do not address these environmental concerns quickly, other large retailers may seek to cut ties higher in the supply chain to streamline a workflow that has already been disrupted for FMCG businesses during COVID-19, says GlobalData, a leading data and analytics company.

 

Jim Toy, Consumer Analyst at GlobalData, comments: “Standing at $1.3 trillion in 2019, the global meat sector is indeed a lucrative market for existing and emerging companies. However, as the world tilts towards a more eco-friendly consensus, established players such as JBS and BRF may find themselves outpaced by smaller companies that better align to these ideals. With more and more customers shifting towards a flexitarian diet and meat substitutes, it is imperative that the meat industry does all it can to align with the global trend.”

 

A survey by GlobalData found that 19 percent of consumers in the US, China and UAE, are always influenced by a product’s ethical/environmental/social impact above all other factors. Furthermore, there is evidence for increased support for flexitarian diets in the growing global meat substitute market, which has grown by 8 percent in 2020 to reach $5.1 billion from $4.7 billion in 2019.

 

Toy continues:

 

more, including links 

https://www.thecattlesite.com/news/56140/major-meat-companies-need-to-address-environmental-negligence-claims-before-it-harms-the-bottom-line/