The Cattle/Beef Industry's Response to Fake Meat: ‘Whistling Past the Graveyard’
Fake Meat and the Demonization of Beef pose a real and serious threat to the cattle/beef industry
Posted by TCR on August 22nd… Updated when new developments occur so check back occasionally.
In a July press release, the National Cattlemen’s Beef Association stated “While meat substitutes have certainly attracted a lot of media hype over the past couple of years, data shows that real beef maintains 99.5% of the retail market vs. only 0.5% for meat substitutes.” The quote from the press release is used to exemplify an attitude widely held within the cattle/beef industry, i.e., “0.5% is no big deal.” This attitude seems to be ‘Whistling Past the Graveyard’ since fake meat companies are selling all they can produce and have a waiting list for future increased production. To be fair to the NCBA, read the entire release and you will see they are concerned and 'click here' to see they are responding.
Impossible Foods launched a co-manufacturing collaboration on July 31st with global food provider OSI Group, one of the largest food producers in the world. OSI will begin producing Impossible Foods’ flagship product, the Impossible Burger, starting in September, adding short-term capacity to Impossible Foods’ plant in Oakland, Calif. OSI will continue to expand production of Impossible Foods flagship product throughout 2019 and thereafter.
Whether called alt meat, faux meat, plant-based meat, cell-cultured meat, or any other name for fake meat, they pose a real and serious threat to the cattle/beef industry. For example, Beyond Meat stock has performed beyond any expectations so far on the stock market, surging to nine time its IPO price of $25 per share. Beyond Meat announced on July 29th that sales nearly quadrupled from a year ago and they plan to sell additional shares in the company.
Beyond Meat demonstrates that venture capital is readily available to the fake meat industry and it is not just a U.S. phenomenon. For example, Brazil and Israel have fake meat companies and a British company has signed a distribution deal with Amazon’s Whole Foods Market to have its fake meat products on the shelves of 450 stores across America this month. Novameat, a company based in Spain, has secured funding for producing steaks with a 3D-Printer. The bottom line is there will be more start-ups, more research & development, and more efficient and increased production. This will result in the cattle/beef industry facing a growing number of competitors offering larger quantities of improved fake meat products that cost them less to produce.
The growing threat from Fake Meat coincides with the cattle/beef industry being attacked as a major contributor to “Climate Change” and as the cause of fires in the Amazon rain forests, not to mention the ongoing assault from radical animal rights organizations like PETA as well as entities such as the United Nations and others. Students from kindergarten through college, as well as society in general, are being bombarded with propaganda that Beef is evil. If you doubt the effectiveness of propaganda, ask yourself why so many people believe Miami FL will be under water in a few decades or don’t believe Neal Armstrong and Buzz Aldrin landed on the moon.
Here are additional examples of the ongoing demonization of beef:
In a piece titled “This Is the Beginning of the End of the Beef Industry” published on OutsideOnline.com, Rowan Jacobsen, an Outside contributing editor, wrote “Most Baby Boomers are going to stick with their beef, right up to the point where their dentures can’t take it anymore. But Gen Z will find the stuff as embarrassing as Def Leppard and dad jeans.” He goes on to state “As this shift accelerates, the beef industry will lose its last advantage -- price.” He closes with “Recent projections suggest that 60 percent of the meat eaten in 2040 will be alt, a figure I think may actually be too conservative. An estimated 95 percent of the people buying alt burgers are meat-eaters. This is not about making vegetarians happy. It’s not even about climate change. This is a battle for America’s flame-broiled soul. Meat is about to break free from its animal past.”
A survey of 1,800 U.S. food consumers conducted earlier this year by economists from Purdue University and Michigan State University found that holding prices constant, 72 percent of participants chose farm-raised beef. The results of this survey have been published on numerous cattle-related websites and publications as affirmation that beef is still consumers' first choice. This is not a victory… 28 percent of those surveyed did not choose farm-raised beef. This is especially alarming because two years ago, it is likely over 95 percent of consumers had never heard of fake meat. Based on the current trend, the percentage not choosing farm-raised beef will increase, especially if fake meat achieves the price advantage mentioned in the paragraph above.
The pain could begin long before 2040... Assume that in 10 years, fake meat has captured 10 percent of the retail market. Losing just 10 percent of the retail market would be significantly detrimental to the cattle/beef industry. The loss of 60 percent of market share by 2040 would devastate the industry and relegate beef production to a relatively small number of surviving producers filling the demand for a niche market comprised of wealthy beef-loving consumers and average consumers celebrating special occasions. For what it’s worth, there is a study published by RethinkX, an independent think tank, which foresees the Cattle Industry Bankrupt by 2030.
Long-term projections are largely based on guesswork and surveys have a margin of error. The important point is that loss of market share to fake meat is inevitable but the amount can be mitigated if the industry acts in a timely and aggressive manner.
Belgian microbiologist Frederic Leroy recently spoke at a Red Meat Sector Conference in New Zealand at which he stated that the “Meat Industry needs to Restore Pride” in their products. Professor Leroy added “Meat is fundamentally beneficial. We need to communicate that and get the science in behind it.”
A possible course of action…
Lobby for the USDA and additional states to enact legislation prohibiting fake meat from describing and labeling its products as 'Beef' and assist in defending the legislation from the inevitable challenges in the courts.
Actively educate consumers about fake meat because a portion of consumers will be concerned about the nutritional issues associated with fake meat. For less health-conscious consumers, knowledge of fake meat’s ingredients and how it is produced will trigger a ‘Yuch’ reaction with many of them.
Launch a robust and ongoing advertising campaign on the Internet, social media, television, and print publications to get the message to a wide range of consumers about the established health benefits of eating beef and reinforce this message with a ‘Real Beef’ label on beef products.
Research the competition… Fake meats are new to the market and have not yet received serious scrutiny from the scientific community as to its nutritional value or the possible harmful effects of long-term consumption. Don’t rely on governmental agencies or independent labs and studies. They have been known to make mistakes and to show bias. We can all recall studies of beef and red meat that reached conclusions detrimental to beef that were later debunked. Commission studies, conducted by research labs with unassailable credentials and methodologies, to determine if fake meats are actually nutritious and safe.
The obvious question is how to pay for all of this? Because Fake Meat poses an extraordinary threat to the beef industry, an extraordinary response is required with participation and funding from all segments of the industry, including other industries that depend on cattle for a significant amount of their revenue. Paradoxically, beef processing companies are unlikely allies since most are owned by diversified corporations that invest capital where they believe it will generate the highest rate of return, as evidenced by companies like Tyson Foods & Cargill investing in fake meat.
Wiser heads than those at The Cattle Range will be needed to formulate, finance, and implement an effective response to Fake Meat and the demonization of beef, but to ignore or under estimate the threat would be ‘Whistling Past the Graveyard.’
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