Supply Chain Series: Other markets and planning
[00:00] And, you know, the in Asia, they’re now starting to process more chicken salad. And India also has been a huge and still continues to be usually like bird sales, but I mean they’re progressively moving into, into slaughtering more and more chickens as are other Asian countries and Africa. And as the start to get into that, then the kind of lean up all the challenges we’ve been discussing that, that Europe and US and Brazil, we have
[00:37] and talking about, you know, we talked about Europe, we talked about the industry in general, but are there any regional special cases, when it comes to the planning, maybe some markets with specific products, you know, that make it extremely challenging to plan or some practices that are, you know, very different from European practices?
[01:05] Well, you know, a lot of the developing countries are moving don’t I mean, a lot of birds sold in Africa today are sold life, you know, so you don’t go anywhere near a processing plant. And there’s not a huge sensitivity about the weight to the extent that we’ve been talking about. But, but these markets are, are on a Arona journey. And, you know, the, in Asia, they’re now starting to process more chickens in India also have been a huge and still continues to be usually, like bird sales, but I mean, they’re progressively moving into, into slaughtering more and more chickens, as are other Asian countries and, and, and Africa. And as they start to get into that, then the kind of lean up all the challenges we’ve been discussing that the European US and Brazil with, we’d have already. And these challenges they have to face into. So you know, everybody chases, volume, sales, price, food is a big thing doesn’t matter which part of the world you’re in, there are fast food people, and they’re moving to fix with fixed portion size and rigid adherence to that. So again, the fixed rate fixed price thing starts to come into play. And then you’ll find over time as a retail sector grows, and we all know Carrefour, Walmart, Tesco. They’re all growing internationally. And they’re looking for more and more fixed weight fixed price products as well. So it’s going to creep into most markets. The other big challenge is fresh. And a lot of countries want to produce fresh No, because it’s a barrier to entry for imports. I mean, you know, a lot of countries will never compete with Brazil for imported frozen chicken prices. So how can we differentiate our product or let’s just produce it local, let’s produce it fresh. And of course that creates its own demands in terms of service in the market. With fresh product, you don’t have the timelines to work to you’ve got to produce fresh to order. You can pack it, you know, last month and deliver it next, you know, two months time, it’s so adds to the complexity. So everybody’s on a bit of a journey. I guess over time in Asia, they will get on with these challenges. And to be fair, Thailand are right now. And for many years supply in Japan, and Europe, two very tough markets to supply very tight constraints on spec of product and weight ranges. And they’ve they’re doing it today and many of these plants in Thailand, but in Indonesia, Malaysia, this, they’re all moving in that same direction. So at some point in time, they’re going to have all this complexity to manage.
[03:53] Yeah, there is definitely a trend but you know, good for them that by the time they get there, they can use all the experience that all other markets already gained for them so that they can apply best practices they can utilize the equipment that works you know, and you know, apply solutions that already proven to be working
