Year: 2024

China’s pork industry crisis

China’s Pork Market Faces Challenges Amid Economic Slowdown and Livestock Liquidation

China is a critical player in the global pork industry, consuming nearly half of the world’s pork supply. This massive demand fuels not only the pork sector but also associated industries, such as feed production, where soybean meal plays a pivotal role in the livestock diet. However, in 2024, the dynamics of China’s pork market are shifting due to economic challenges, reduced pork consumption, and significant changes in sow inventories. According to the latest report from the United States Department of Agriculture (USDA), the country’s pork consumption is expected to contract by 3%, a direct consequence of the ongoing economic slowdown.

Declining Pork Consumption in China

The expected 3% reduction in pork consumption is a key indicator of the economic issues China is currently facing. For years, the country has been the largest consumer of pork globally, with pork being a staple in the Chinese diet. However, the economic slowdown, which has affected various sectors of the Chinese economy, is now taking its toll on pork consumption. Reduced consumer purchasing power and shifts in dietary habits are contributing to this decline.

Additionally, economic constraints are influencing both demand and prices in the pork market. When combined with other factors, such as oversupply and declining consumer confidence, the reduction in pork consumption is having a ripple effect across the industry, influencing everything from feed demand to international trade.

Sow Inventory Reduction: A Major Market Shift

One of the most significant developments in China’s pork industry is the sharp reduction in sow inventories. After reaching record levels in previous years, the number of sows has been drastically cut in response to market conditions. In 2023, China had over 717 million head of swine, which led to ample pork supplies and consequently depressed prices throughout the production cycle. This oversupply resulted in significant financial losses for pork producers, marking the worst downturn since 2014.

The situation became even more dire with the resurgence of African swine fever, a disease that has devastated China’s pork industry in the past. In 2023, the disease returned with a vengeance, leading to widespread livestock liquidation. This trend continued through the first half of 2024, further exacerbating the challenges facing pork producers. The cumulative effect of these pressures is a significant contraction in the sow population, which is expected to decrease by 3% in 2024, according to the USDA.

The Impact of Livestock Liquidation

The mass liquidation of livestock in China has reached unprecedented levels. Between January and June 2024, pig slaughter reached 160 million head, matching the liquidation rate of the first half of the previous year. This represents the most significant liquidation rate in at least fifteen years. The sharp reduction in pig numbers is partly a response to the economic pressures facing pork producers, as many farms are forced to cut their losses and reduce their herds.

This contraction is expected to have long-term implications for the industry. By the end of 2024, the number of sows is projected to fall to 695 million head, the lowest level since 2021. This reduction leaves China with the tightest pork stocks since 2019, raising concerns about future supply shortages and price volatility.

Weakening Demand for Soybean Meal

As the sow inventory decreases, so does the demand for feed, particularly soybean meal. Soybean meal is a critical component of livestock feed, and China is the world’s largest importer of soybeans. The reduced need for feed is a direct result of fewer pigs and sows requiring sustenance. The contraction in demand for soybean meal is expected to have a knock-on effect on the global soybean market, particularly in countries like the United States, Brazil, and Argentina, which are major exporters of soybeans to China.

In addition to the decline in demand, China is facing a surplus of soybean stocks in its main ports. These high inventory levels further dampen the need for additional imports, leading to a potential oversupply in global markets. This shift could affect soybean prices and trade flows, with exporters needing to seek alternative markets to offset the reduced demand from China.

Outlook for 2024 and Beyond

The pork industry in China is undergoing a period of significant transformation. Economic pressures, reduced consumption, and the effects of African swine fever have created a perfect storm, leading to substantial reductions in the country’s sow and pig populations. These changes are expected to have far-reaching consequences for the global pork and soybean markets.

China’s Ministry of Agriculture and Rural Affairs (MARA) has acknowledged the challenges facing the industry, noting that pork producers have not faced such sustained losses since 2014. The combination of oversupply, disease outbreaks, and economic headwinds has created an uncertain outlook for the industry. By the end of 2024, pork supplies are likely to remain tight, with prices potentially rising due to reduced production levels.

For soybean producers, the outlook is similarly complex. The reduction in demand for soybean meal from China, coupled with high stock levels in Chinese ports, could lead to an oversupply in global markets. This may result in downward pressure on soybean prices, affecting the profitability of soybean farmers in key exporting countries.

Conclusion

China’s pork industry, which accounts for half of the world’s consumption, is facing significant challenges in 2024. A 3% contraction in local pork consumption, a sharp reduction in sow inventories, and the continuing effects of African swine fever are reshaping the industry. These developments are having a profound impact on the demand for soybean meal and could lead to long-term changes in global pork and feed markets. As China navigates these challenges, both domestic producers and international suppliers will need to adapt to the evolving market dynamics.

The road ahead for China’s pork industry is fraught with uncertainty. However, with strategic adjustments and careful management, the sector could stabilize in the coming years, ensuring the continued provision of pork to the world’s largest consumer market. Meanwhile, global markets will be watching closely, as the ripple effects of these changes spread across the pork and soybean industries worldwide.

Posted on Author Categories Meat

On Special: How grocers are turning pizza into dough

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“On Special” is a monthly look at evolving store categories with insights on how different grocers are capitalizing on top trends.

Pizza has long occupied a place of honor in the American diet, with consumers consistently dishing out billions of dollars per year on the cheesy food at retail locations, sit-down restaurants and fast food establishments. 

As they look to improve their foodservice offerings, supermarket chains have invested in their pizza offerings to take advantage of shoppers’ desire for the food. From drawing attention to their in-store pizza ovens to partnering with local restaurateurs that specialize in the food, here’s how food retailers are looking to get a bigger slice of pizza sales.

Giant Food debuted a Ledo Pizza Corner Shoppe with take-and-bake and “order hot from the oven” pizza options at a store in Elkridge, Maryland in 2023.

Permission granted by Giant Food

 

 Data insights

Frozen pizzas have lately moved off grocery store shelves at a solid clip. Shoppers spent $7.4 billion on frozen pizza alone during the year that ended in July — up just under 1% year over year and more than on frozen breakfast foods, snacks or baked goods — according to data collected by Circana and published by 210 Analytics.

Frozen pizza commanded $549 million in sales during July, up just under 1% from the previous year, and the number of units sold grew by nearly 2%, the data shows. Consumer interest in frozen pizza was up in July even as sales of other types of frozen meals, including entrees and breakfast items, lost ground in sales.

Globally, frozen pizza sales jumped 11% in 2023, due in part to retailer promotions, according to figures from Market.us Media.

By comparison, consumers spent $85 million on deli prepared pizza in July, up about 4% year over year, according to Circana data cited by 210 Analytics. Spending on deli prepared pizzas came in at $1.3 billion for the year that ended in July, an increase of 6.7%, Circana found.

By the numbers

 

$549 million

Amount U.S. shoppers spent on frozen pizza in July, according to Circana data published by 210 Analytics

 

$7.4 billion

U.S. consumer spending on frozen pizza during the year that ended in July

 

$85 million

Spending by U.S. consumers on deli-prepared pizza in July

Pizza on display in a Harris Teeter store in Gaithersburg, Maryland, on Sept. 15, 2024.

Sam Silverstein/Grocery Dive

 

Standout grocers

Dishing up pizza partnerships

In January, Giant Food struck a deal to sell pizzas from Maryland chain Ledo Pizza in some of the Mid-Atlantic supermarket chain’s stores. Shoppers have the option of taking the food home in a box to warm up in their own ovens or asking an employee to heat up a pizza to eat on the spot, a reflection of the Ahold Delhaize-owned chain’s efforts to dedicate more space in its new stores to ready-made meal choices. 

In July, meanwhile, Mt. Gatti’s Pizza unveiled plans to bring 92 pizza shops to Walmart stores in Texas, Louisiana, Oklahoma and Kentucky, a move the Texas-based chain said would nearly double its footprint.

Destination pizza

Specialty grocer The Fresh Market has positioned its stores as prime pizza destinations, announcing in May that it has rolled out a new selection of “authentic Neapolitan-style pizza” that it said would make mealtime easier for customers. The retailer’s chefs designed the recipes, which include BelGioioso cheese, Italian tomatoes grown from “fertile volcanic soils” and crusts made from “highly esteemed Neapolitan flour.” 

The Fresh Market’s focus on pizza comes as the chain looks to build ties with customers by highlighting its prepared food options. Several of the chain’s stores include “an expanded kitchen focus” on dinner items that includes a range of restaurant-quality options including hot and freshly prepared pizza.

Serving up a slice of deals

Harris Teeter put a spotlight on pizza when it announced in May that it would include pizza in its “$5 Meal Days” program, which it positioned as a way to attract budget-minded shoppers reeling from the rising cost of eating out. On Mondays, customers could get whole cheese and pepperoni pizzas — freshly baked and “take & bake” — as part of the program.

 What’s trending?

Grocers have looked to take advantage as people stock up on frozen pizzas. Last fall, Albertsons rolled out a premium wood-fired pizzas imported from Italy under its Signature Reserve private brand.

Also this year, Giant Eagle struck a deal with The 1870 Society, an organization that supports athletics at The Ohio State University, under which the chain said its Ohio stores would sell frozen pizzas featuring student athletes who play for the university.

In keeping with demand by shoppers for foods they can store at home easily and get on the table quickly, SpartanNash included frozen pizzas in its “Finest Reserve by Our Family” private label line, which launched in February. The brand centers on items that include “fresh and authentic ingredients,” according to SpartanNash.




Jones Soda Debuts Mary Jones Colas with Hemp THC

Jones Soda Co. has added Cola and Zero Cola flavors to its portfolio of Mary Jones hemp-derived delta-9-THC (HD9) beverages and edibles. 

The products are among the first colas in the HD9 category, including the first HD9 zero-calorie cola, bringing the soft drink flavor to consumers seeking THC-based alcohol alternatives.

Both colas are made with new formulas leveraging Jones’ flavor expertise to deliver crisp, refreshing taste with no weedy aftertaste, thanks in part to rigorous THC distillate sourcing standards. Both come in 12-oz. cans with either 5 mg THC or 10 mg THC.

Like all mainline Jones craft sodas, Mary Jones HD9 Cola is sweetened with natural cane sugar. Mary Jones HD9 Zero Cola is sweetened with sucralose.

The new colas join the HD9 Berry Lemonade, Green Apple, MF Grape, and Orange & Cream soda flavors that launched Mary Jones’ hemp-infused line in January. The lineup now also includes gummies and 2-oz. shooters.

All products can be shipped direct to consumers in most states. The line is also available in liquor stores and other retail venues in many states.

“Cola accounts for half of the carbonated soft drinks flavors sold globally, so we tasked our flavor scientists with developing a completely new formulation that would outdo every other brand in taste,” said David Knight, CEO of Jones Soda. “We now have colas in both our HD9 and mainline craft soda collections, with other major new products launching this quarter to continue our strong growth.”

Jones Soda was the first nationally distributed CPG soda company to crossover into cannabis when it launched the Mary Jones brand in California in 2022 and also the first to enter the emerging HD9 market. Mary Jones cannabis products are now sold in dispensaries in California, Michigan, Washington and Canada, with ongoing expansion into other cannabis-legal markets.




Poultry markets bullish but disease, geopolitical risks loom

Lower feed costs and high prices for competing proteins are making poultry products increasingly attractive to consumers worldwide. The analysts have raised their forecast for global poultry market growth this year from 2.5% to 3%, spurred by recoveries in key markets such as China, the EU, India, Pakistan, and Southeast Asia.

Strong retail demand and a rebound in foodservice consumption are also expected to support growth.

However, the report highlights two major uncertainties: animal diseases and geopolitical tensions. “Both can significantly disrupt global trade flows at any time,” warned Nan-Dirk Mulder, senior analyst for animal protein at RaboResearch.

Current tensions in the Middle East, for example, have led to the rerouting of trade via South Africa, which is increasing transport times and costs between Asia and Europe.

Disease risks​

A recent outbreak of Newcastle disease on a farm in Rio Grande do Sul, Brazil, led to export bans from several major importers, including Japan, China, Saudi Arabia, and South Africa. While restrictions vary by region, and no further cases have been reported, the incident has raised concerns for both Brazil and its trading partners.

Meanwhile, avian influenza continues to pose a challenge, though the situation has improved slightly compared to last year.

The EU has reported its lowest number of outbreaks since 2019, and South Africa has remained free from commercial farming outbreaks, with chicken production fully recovered.

However, the US has experienced ongoing avian influenza outbreaks, particularly affecting its egg industry. With the approach of winter in the Northern Hemisphere, the risk of further outbreaks is expected to rise.

Feed price decline​

RaboResearch predicts further declines in feed costs, particularly for grains and oilseeds like soybeans and corn. Prices dropped significantly in the second and third quarters due to stronger-than-expected harvests in the Northern Hemisphere, a strong US dollar, and promising Russian wheat yields.

While US corn and soybean supplies are improving, risks remain due to uneven rainfall in the Black Sea region and the potential impact of La Niña on upcoming harvests. Although compound feed prices are expected to drop slightly, significant regional differences could arise depending on weather conditions.

Supply chain pressures​

Global chicken grandparent stock remains tight, and hatcheries in several countries are facing technical performance issues, leading to slower supply growth in regions like Latin America, Africa, and Asia.

Higher prices for day-old chicks (DOC) are also contributing to this trend.

Profitability and trade outlook​

Despite these challenges, most poultry industries worldwide remain relatively profitable, with prices rising in many markets. The exceptions are China and Japan, which are grappling with local oversupply, falling prices, and rising stockpiles. Slower production growth, weaker economic conditions, and lower consumer confidence are driving this oversupply, leading to a sharp decline in chicken imports to both countries during the first half of 2024.

Nevertheless, global poultry trade is expected to remain strong through the second half of 2024, as demand for chicken imports increases in many markets. Consumption in developed economies like Europe, the US, and Japan is projected to continue its upward trajectory, supported by the long-term trend of affordability. Demand for value-added products, such as processed and specialty poultry, is also expected to recover further.




Matthew Algie marks 160 years with multi-million-pound factory ‘transformation’

The Glasgow-based coffee roaster has unveiled a major coffee facility upgrade featuring state-of-the-art automated production and packing lines

Founded in 1864, Matthew Algie is one of the UK and Ireland’s largest coffee suppliers, providing roasted coffee and coffee equipment to more than 7,500 businesses and employing 400 staff | Matthew Algie 

Scotland’s Matthew Algie has unveiled a major coffee factory upgrade with a focus on efficiency and eco-friendly production as it works to boost capacity and achieve net zero carbon emissions by 2040.
 
Marking its 160th anniversary, the coffee group has introduced state-of-the art technology to its Glasgow factory, including a new green handling and blending system, upgraded automation, new conveying systems and packaging line. 
 
The upgrade also features a new pallet-packing robot capable of packing coffee into carboard boxes, passing them through the production line and positioning them for delivery. In a bid to further increase capacity while cutting costs and emissions, Matthew Algie has replaced traditional hessian sacks with larger one-tonne transportation bags and now ships coffee in bulk containers. 
 
The upgrades are the culmination of a multi-million-pound investment secured by Matthew Algie in 2023 to increase annual roasting capacity to 2,500 tons per year. 
 
“After sixty rich years of roasting coffee at our beloved Glasgow site, we knew it was time for a fresh upgrade and we’re thrilled to share our exciting roastery transformation. This multi-million-pound investment isn’t just about enhancing our operations—it’s about brewing a brighter, more sustainable future,” said Paul Chadderton, Managing Director of Sales and Marketing, Matthew Algie.
 
Founded in 1864, Matthew Algie is one of the UK and Ireland’s largest coffee suppliers, providing roasted coffee and coffee equipment to more than 7,500 businesses and employing 400 staff. 
 
The Glasgow-based coffee roaster was early proponent of ethical coffee sourcing, introducing the UK’s first Fairtrade espresso in 1997 and the world’s first triple-certified (Fairtrade, Organic and Rainforest Alliance) espresso in 2004. 
 
In 2019, Matthew Algie became the world’s first carbon neutral coffee roastery after working to offset emissions through carbon credits projects in Uruguay and India. The business continues to work with Fairtrade to support farmers and producers around the world in countries including Rwanda, Ethiopia, Peru, and Honduras.
 
Part of Tchibo Group since 2016, in January 2024, Matthew Algie became the German coffee giant’s flagship coffee brand in the UK and Ireland following the strategic merger of Tchibo Coffee Services and Dublin-based Capitol foods.




Sounion successfully towed away from Yemeni coastline

EUNAVFOR

Salvagers successfully towed a Greek-flagged oil tanker that had been ablaze for weeks following attacks by Yemen’s Houthi rebels to a secure area, preventing any oil spill, the European Union naval mission said yesterday.

The tanker was hit by multiple projectiles from the Houthis of Yemen on August 21, with the crew evacuating and the Houthis then boarding the Sounion and detonating a series of explosives.

Laden with 1.1m barrels of crude, the Delta Tankers ship risks becoming the fifth worst tanker spill of all time. 

Fires were still visible from its deck as the delicate operation to tow it northwards started over the weekend.

The ship was escorted by three frigates, with helicopters overhead, while three tugs were engaged in the towage operation. 

The Sounion’s destination is currently unknown with European naval forces merely stating a “safe location”. 

Salvors are now likely to assess how to proceed with a ship-to-ship transfer to empty the Sounion’s cargo of Iraqi heavy crude. 




Hero Group buys UK’s Deliciously Ella

Credit: Deliciously Ella / Facebook

Swiss manufacturer Hero Group has acquired UK-based healthy food business Deliciously Ella.

Financial details were not disclosed.

Lenzburg-headquartered Hero Group said in a statement today (16 September) the deal will “help supercharge sales” both in the UK and other markets.

The Swiss group is already present in the UK market through its Organix brand, which focuses on organic foods and snacks for babies, toddlers and children.

“Our multi-year strategy has focused on bringing brands that fit within our core categories with the aim of fulfilling our mission to bring natural, healthy food to consumers,” said Rob Versloot, CEO of Hero Group.

Deliciously Ella founders Ella Mills and Matthew Mills, who is CEO, will remain with the company.

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In a joint statement they said: “We have had numerous approaches to sell or partner with other food companies over the years, but only this one felt right. As a family-owned business, with a long-term view that aligns with our thinking, Hero Group are the right fit for us.

“Hero has brands all over the world and a proven track record in helping brands reach much greater scale. This is a transformational moment in bringing our natural, plant-based ranges to more people, both in the UK and abroad.”

Founded in 2012, Deliciously Ella is stocked in major retailers including Tesco, Sainsburys, Asda, Co-op, Waitrose, and Ocado. The Deliciously Ella brand offers a range of oat bars, granola and crackers. Its Plants brand includes pasta, pasta sauces and salad dressings.

However, the acquisition does not include the Plants brand or business, which will continue to be owned by Ella and Matthew. 

In 2022, Hero Group sold its UK gluten-free arm Juvela to brand-builder S-Ventures.

The group sold its Semper gluten-free business in the Nordics the following year to Dr. Schär for an undisclosed fee.






US wholesale prices: Demand shifts noted as twice-frozen Atlantic cod strengthens

Undercurrent News is excited to announce the launch of our new weekly US wholesale price update for subscribers. These updates will provide timely insights into key trends, pricing fluctuations, and market dynamics across various seafood categories, starting with the groundfish market. […]

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Posted on Author Categories Seafood

JBS Forecasts $76.5 Billion in Revenue for 2024: Aiming for Strong Growth Amid Global Protein Demand

Introduction

Brazilian meatpacking giant JBS, one of the largest players in the global protein market, is setting high expectations for its financial performance in 2024. In a recent securities filing, JBS revealed forecasts that project impressive core earnings and revenue for the year. This optimistic outlook comes as the company continues to solidify its dominance in the meat industry, with an extensive portfolio ranging from beef and pork to poultry and plant-based alternatives.

Revenue and Earnings Projections for 2024

According to a filing released earlier this week, JBS expects its 2024 net revenue to reach approximately $76.5 billion. In addition to this, the company forecasts adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA)—a key measure of profitability—to total between $6.25 billion and $6.75 billion.

The EBITDA range reflects the company’s resilience and continued operational success, despite economic fluctuations and challenges posed by the global supply chain and inflation. These figures underline JBS’s ability to maintain profitability in a competitive market environment.

Meeting Regulatory Requirements

The disclosure of these financial estimates is a regulatory requirement mandated by Brazil’s securities regulator, Comissão de Valores Mobiliários (CVM). The CVM has set guidelines for public companies like JBS to maintain transparency in their financial reporting. As such, the company’s public filing serves both to inform investors and comply with these regulations.

By adhering to such regulatory obligations, JBS reinforces its commitment to transparency and accountability, further bolstering investor confidence.

Factors Driving JBS’s Growth

The strong forecast for 2024 is a result of various strategic initiatives and market conditions that have benefited JBS’s business. Below are some key factors driving the company’s growth:

1. Global Demand for Protein

JBS has capitalized on the growing global demand for protein, driven by population growth, urbanization, and increasing disposable incomes in emerging markets. As the world’s largest meat processor, JBS supplies beef, pork, and poultry products to consumers across more than 150 countries. With a diverse customer base and access to key markets like the United States, Europe, and China, JBS is well-positioned to benefit from the sustained demand for animal protein.

2. Diversified Product Portfolio

In addition to its traditional meat products, JBS has expanded its portfolio to include plant-based and alternative proteins through its subsidiary, Planterra Foods. The company’s diversification strategy helps it tap into the growing interest in plant-based diets, particularly in developed markets where consumers are seeking healthier and more sustainable food options. By embracing innovation in the protein sector, JBS can capture market share in both conventional and alternative protein markets.

3. Strategic Acquisitions

JBS has a track record of growth through acquisitions, which has helped it expand its footprint in the global meatpacking industry. The company’s past acquisitions of major brands in the United States, Europe, and Australia have boosted its scale and market presence. Acquisitions have not only increased JBS’s capacity but have also enabled it to streamline operations and improve efficiencies, thereby enhancing profitability.

Challenges Facing JBS

While the company’s financial outlook is strong, it is not without challenges. JBS operates in a highly regulated and scrutinized industry, and it must navigate issues such as animal welfare concerns, environmental sustainability, and supply chain disruptions. Additionally, the meat industry has faced criticism regarding its carbon footprint and the ethical treatment of animals, pushing companies like JBS to invest in sustainable practices.

1. Sustainability and Environmental Impact

The meatpacking industry is a significant contributor to greenhouse gas emissions, water usage, and deforestation, particularly in regions like the Amazon. As a result, JBS has faced pressure from environmental groups and regulators to adopt more sustainable practices. In response, the company has made strides in reducing its carbon footprint, with plans to achieve net-zero emissions by 2040. These initiatives include investing in renewable energy, improving supply chain efficiency, and reducing waste.

2. Supply Chain Challenges

The global supply chain has experienced significant disruptions in recent years, with the COVID-19 pandemic exacerbating labor shortages, transportation bottlenecks, and rising costs. These challenges have impacted industries worldwide, including meatpacking. However, JBS has demonstrated resilience in managing its supply chain, leveraging its vast resources and logistics capabilities to mitigate the impact of these disruptions.

3. Regulatory and Ethical Issues

Operating in multiple countries, JBS is subject to a complex web of regulations regarding food safety, labor rights, and environmental standards. The company has faced legal and ethical challenges in the past, including allegations of corruption, labor violations, and deforestation practices. To address these concerns, JBS has implemented strict compliance programs and invested in technologies to improve transparency across its operations.

Outlook for 2024 and Beyond

JBS’s financial projections for 2024 reflect the company’s confidence in its ability to navigate the current market environment and capitalize on growth opportunities. Despite the challenges, JBS is well-positioned to continue expanding its operations and enhancing profitability. Below are some key trends and initiatives that will shape the company’s future:

1. Expansion into Alternative Proteins

As the global plant-based protein market continues to grow, JBS is expected to invest further in its Planterra Foods subsidiary, which produces plant-based meat alternatives under the OZO brand. The company has indicated that it plans to expand its alternative protein offerings to meet growing consumer demand, especially in North America and Europe.

2. Sustainability Goals

JBS has set ambitious goals to reduce its environmental impact and has committed to becoming a leader in sustainability within the meatpacking industry. The company’s investments in carbon reduction initiatives and sustainable farming practices are expected to improve its reputation and attract environmentally conscious investors and customers.

3. Global Expansion

JBS’s presence in key markets around the world, including the United States, Europe, and China, will continue to drive its growth. The company has already established a strong foothold in these regions, and further expansion through acquisitions or strategic partnerships could bolster its market share in the coming years.

Conclusion

With an impressive financial forecast for 2024, JBS remains a dominant player in the global meatpacking industry. The company’s projected net revenue of $76.5 billion and EBITDA of up to $6.75 billion demonstrate its strong operational capabilities and strategic foresight. While challenges such as sustainability and supply chain disruptions persist, JBS is committed to overcoming these obstacles and securing long-term growth.

As the company continues to innovate and expand its product offerings, particularly in the alternative protein space, JBS is poised to maintain its leadership position in the global protein market for years to come.


Posted on Author Categories Poultry

Is your brand prepared for the HFSS ad ban?

In October 2025, the UK will tighten its rules around the promotion of HFSS products, marking a key initiative in its strategy to combat childhood obesity and enhance public health. A watershed ban on television and online advertising will be introduced, fundamentally changing how these products reach consumers, particularly younger audiences.

What’s the HFSS watershed?

Pic: GettyImages

Under the new regulation,​​ TV advertisements for HFSS foods and beverages (scoring 4 points or more; and 1 point or more, respectively) will be prohibited before 9pm.

This measure is designed to reduce children’s exposure to ‘unhealthy’ food marketing during peak viewing hours in the afternoons and early evenings. The ban also extends to online platforms, limiting HFSS promotions via paid ads on social media, search engines and influencer marketing.

The rationale behind this is by limiting exposure to these ads, the UK government hopes to reduce the influence of HFSS food marketing on children’s food preferences and consumption habits.

Health experts rally behind HFSS ad restrictions

There has been widespread weigh in around the restriction of ‘unhealthy’ food advertising, particularly targeting children.

Health experts, including the World Health Organization (WHO), have repeatedly emphasized the link between the exposure of children to HFSS advertising and the rise in childhood obesity. Studies show that marketing unhealthy foods increases children’s consumption of these products, influencing their food preferences and normalizing junk food in their diets.

Organizations like Cancer Research UK, the British Heart Foundation and Action on Sugar, too, strongly support the advertising ban. They argue this is a crucial step in reducing diet-related illnesses.

Campaigners have increasingly highlighted the role of digital advertising, with children spending more time online. Targeted ads on platforms like YouTube, Instagram and TikTok are seen as highly influential, with concerns about the effectiveness of online ad bans and the need for stricter regulation to prevent children from being targeted by unhealthy food brands.

How are foods classified as HFSS?

The categorization of HFSS is determined using the Nutrient Profiling Model (NPM) developed by the Food Standards Agency (FSA) and Public Health England (PHE).

Foods accumulate points for calories, fats, sugars and sodium, which push them towards HFSS categorization. On the other hand, points are subtracted for beneficial nutrients like fibre, protein and fruit or vegetable content.

If a food scores 4 points or higher – or a drink hits 1 point – it’s classified as HFSS.

For example, a snack high in sugar and fat but low in fibre or protein will score high, while a product containing healthier elements can offset these scores, potentially avoiding the HFSS label.

Industry pushback

The F&B industry – especially fast food and snack brands – has voiced concerns over the restrictions, citing potential negative impacts on revenue and marketing strategies. Some have argued the bans don’t fully address the root causes of obesity, such as lack of education and physical activity.

Countries like Chile, Canada and Mexico have already implemented strict advertising restrictions on HFSS products to children, with varying degrees of success. These measures, which often include warning labels and clear nutritional information alongside advertising bans, are seen as models for other nations considering similar actions.

While advertising restrictions are welcomed, health advocates emphasize these should be part of broader, multi-faceted strategies.

Along with bans, policies such as better food labeling, taxes on sugary drinks (already a successful initiative in the UK) and improved access to healthy foods are critical for fostering healthier dietary habits among children.

The fine balance of reformulation

Pic: GettyImages

Along with reassessing marketing strategies to find creative ways to engage with consumers, many producers have also begun reformulating their products to avoid the HFSS tag by gradually altering ingredients to improve nutritional content, though this process is complex and demands technical expertise.

Reformulation is a quagmire – and undoubtedly comes with additional costs​​ – but a concept that no producer can afford to ignore. We’re here to help. Watch out for Bakery&Snacks’ webinar on Reformulation going live on October 25.

Addressing inequalities

Meanwhile, the Obesity Health Alliance (OHA) – which is supported by 88 health charities, medical groups and local advocates – has issued an open letter urging the Prime Minister to implement reforms to create healthier communities.

The OHA’s proposals focus on empowering local councils, especially in deprived areas, by prioritizing health in national planning guidance, restricting unhealthy food advertising, protecting councils from commercial pressure and restoring public health funding with a £1.5bn increase.

A recent YouGov poll reveals strong public backing for these measures, with 70% supporting a ban on ‘unhealthy’ food advertising near schools and 52% supporting restrictions on new fast-food outlets in such areas. However, 50% of respondents believe childhood obesity rates will remain unchanged under the current government, reflecting skepticism about its ability to drive meaningful change.

The government has initiated a consultation on how planning can address obesity, but campaigners stress the importance of fully implementing these reforms to empower local communities. The financial burden of obesity is significant, costing the NHS £6.5bn annually and the broader economy a whopping £98bn. Addressing diet-related ill health is crucial for economic growth and a sustainable NHS.

OHA director Katharine Jenner believes the UK’s high streets are dominated by unhealthy choices.

“Every child deserves access to affordable, convenient and nutritious food. However, high streets are flooded with unhealthy food and drink options, aggressively marketed in ways that limit free choice,” she said.

“Since 2016, the number of children and young adults diagnosed with Type 2 diabetes has increased by nearly 40%, fueled by rising levels of excess weight. Successfully implementing the government’s Child Health Action Plan would be a significant achievement, with the essential first step of giving local places the power to create healthier, active local communities for our children.”

Darrell Gale, spokesperson for the Association of Directors of Public Health, concurs, adding the prevalence of unhealthy food is not a result of personal choice, but circumstances.

“The reality is that people don’t have the freedom to choose. Instead, they are forced by circumstances to buy cheaper, less healthy alternatives, bombarded by advertising and marketing, and are unable to access active transport, open spaces, or affordable leisure options,” he said.

“Only by creating healthier environments, where people have better access to the things we need to live healthier lives for longer, can we hope to address this inequity.”




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