The beef market - Italy (2023)

1.2 The global market: beef

The global beef market reached an approximate value of $***.* billion in **** and is estimated to grow at a CAGR of *.**% between **** and ****, reaching a value of nearly $***.* billion.

Global beef market World, ****-****, US$ billion Expertm Market Research

Global beef demand is strongly influenced by rapid economic development and changes in the lifestyle of middle-income consumers, which is a significant determinant aspect of meat production. The trend toward consumption of animals raised without the use of antibiotics is driving this market, leading producers to seek to improve the quality and productivity of their herds. In addition, with the use of digital tools and with data analysis to optimize feed efficiency, we are seeing an improvement in overall production management.

European beef production

Following the United Kingdom 's exit from the European Union, Italy becomes the third largest beef-producing state in Europe (***), while, in the first quarter of ****, production is *.*% lower than in the similar period of ****, with the contribution of Italy, Portugal and Romania in particular declining, while the Netherlands and Greece are increasing.

European production - beef Europe, ****, % Ismea

The situation in the various EU member states

Beef demand is being severely restrained by inflation in most European markets. Despite ...

1.3 The local beef market

The local beef market is a key sector in the agribusiness of many regions and is an important pillar both economically and culturally. This market is characterized by a wide range of products, which vary according to the breeds of cattle raised, farming techniques and meat processing methods. From the point of view of the weight that this segment presents in the food industry macrosector, it can be seen that this has recorded, in the years analyzed below, about * percent of total turnover.

Weight on turnover of the food industry - beef Italy, ****-****, % Ismea

From **** to **** there was a decline in beef production (***) of *.* percent, simultaneous, however, with an increase in the value of producer prices of **.* percent. For this reason, the value of **** turnover increased significantly to *.* million euros.

Units **** **** **** Beef - slaughterings by dead weight *** t *** *** *** Production at basic beef prices million *.*** *.*** *.*** Industry turnover million € *.*** *.*** *.***

Production

Based on Istat data analyzed by Ismea, it can be seen that production in the first three months of **** was down sharply compared to ****, with a ** percent reduction in terms of carcass weight. All categories show a decline, most pronounced for females (***), which exceed **%. Higher production prices, particularly for feed, may have ...

1.4 Analysis of Imports and Exports

Italy is highly dependent on the value of imports of the product, as seen in the value of the coverage rate, which is around ** percent. From **** to ****, Italy's beef dog trade increased in both imports (***); in the specific case of imports, there is a decline in ****, which is **.* percent from the previous year. The stability of the value of the coverage rate suggests a growing demand for the beef product in Italy, but with a recognition of the quality of the product in foreign markets as well.

Exports, Imports and Coverage Rate Italy, ****-****, US$ UNComtrade

When it comes to exports, the Netherlands is among the main recipients of beef exported from Italy. In ****, the Netherlands, along with Germany and Greece, accounted for **.* percent of total beef exports from Italy (***).

Percentage breakdown of exports among the top * consumer countries Italy, ****, % UNComtrade

The main destinations of Italianimports, on the other hand, are Poland, France, the Netherlands, Spain and Ireland.

Percentage distribution of imports among the top * beef supplier countries Italy, ****, % UNComtrade

1.5 Impact of the conflict between Russia and Ukraine

The outbreak of the Russian-Ukrainian conflict in February **** led to, among other things, a general increase in the consumer price index. The beef production sector is not exempt from this increase. Through analysis of the consumer price index for beef, an increase of**.* percent between January **** and August **** can be shown.

Beef consumer price index Italy, ****-****, base ****=*** Istat

the increase in consumer prices is nothing but a reflection of the increase in producer prices. Between January **** and August ****, theproducer price index for meat processing and pres ervation increased by **.* percent.

Producer price index meat processing and preservation Italy, ****-****, base ****=*** Istat

2.1 Demand characteristics

The demand for beef in Italy tends to be very high; consumers are oriented toward the choice of this product both because of issues related to the culinary recipes of the place of origin and because of popular beliefs and habits. Specifically, below is the monthly household expenditure (***) on beef. As for ****, the Istat database provides more general information, not considering exclusively beef expenditure. From **** to **** , a growth of *.*% is noted.

Monthly household expenditure on beef Italy, ****-****, in current euros Istat

Analyzing, on the other hand, the consumption of the product in the last two available years (***) per *** people with the same characteristics, we see that the Islands represent the area with the highest consumption in Italy, registering, however, a decrease of *.* percent compared to ****. This is followed by Central Italy, the South and the North.

People aged * and older by consumption of certain foods: beef at least a few times a week Italy, ****-****, millions of people Istat

2.2 Factors influencing demand

Meat consumption varies greatly by consumer age group, although it remains a widely favored product in Italy. The age group that consumes the largest amount of beef is those belonging to the **-** age group(***). In contrast, those who consume the least are those belonging to the **-** age group.

Beef consumption at least "a few times a week," by age group Italy, ****, per *** people with the same characteristics Istat

Nutritional benefits

Generically speaking, meat, albeit in the variety due to the species, cuts and characteristics of the animal considered, represents a protein source with high biological value. This signidicates that its proteins are very similar to human proteins (***) and are, therefore, usable by the body to satisfy the various metabolic processes in which they are required. Meat also has an excellent mineral content. The most important is iron, but meat also contains: potassium, sodium, phosphorus, zinc and selenium.

The iron present in meat is significantly higher than in foods of plant origin; this difference is also recorded at the qualitative level, in that, for the same amount of iron intake, that of animal origin is absorbed in significantly higher proportions (***), which is insoluble and not very bioavailable.

In addition to ...

2.3 Geographical distribution of demand

To visualize the geographical distribution of demand, a map was created regarding beef consumption at least a few times a week, per *** people with the same characteristics. The highest consumption is in the Islands (***); the North has lower values, **.* for the Northwest and **.* for the Northeast. The higher meat consumption in the Islands, compared to other macroregions, may be influenced by several cultural, economic and historical factors. Indeed, in many island cultures, meat plays a significant role in diet and culinary traditions.

2.4 New demand trends: synthetic meat

The survey conducted in **** by the Ixè Institute provides insight into Italians' perceptions of synthetic meat, starting with their knowledge of the terminology used to identify the product. As can be seen from the graph below, there are still few Italians who know or have tried synthetic meat. In fact, the highest value recorded refers to artificial meat (***). This is followed by in vitro meat, cultured meat and clean meat. Going into detail on the survey conducted, it was found that there is a greater knowledge of terminology among the male class than the female class, and the age group most involved is between **-** years old. Regarding the educational level of the sample analyzed, it can be seen that there is greater knowledge of all the various terms taken as a reference, among those with high schooling, compared to middle and low schooling.

% knowledge of terminologies used to identify synthetic meat Italy, ****, in % [***]

Regarding the perception of the terminology used to identify synthetic meat, it can be seen that there is a high negative perception for the term "artificial meat" in about ** percent of cases, while there is a more positive value for clean meat. Perception of terminologies used ...

3.1 Market structure and dynamics

The graph below allows us to reflect on the stability of the market taken under analysis, sugesting a balance between supply and demand. This means that the sector is mature and existing companies are able to meet demand without the need for new entrants. From **** to **** , there was growth, albeit slight, but steady, and then a not particularly significant decline in ****, amounting to *.** percent.

Number of active enterprises - production of meat (***) and slaughter products Italy, ****-****, number of enterprises Istat

Regarding the legal form of enterprises active in meat and slaughter products production, there is a predominance of sole propriet ors(***); this suggests that the sector is dominated by small and medium-sized enterprises, indicating a relatively accessible market, where barriers to entry are not prohibitive and allow individual entrepreneurs to start their own business.

Legal form of enterprises active in the production of meat (***) Italy, ****, % Istat Consistent with the stability of enterprise activity, it can be seen that the number of employees also tends to be stable. As shown in the graph below, from **** to **** there is an increase in the number of employees of*.**%. Number of employees of active enterprises producing meat and slaughter products (***) Italy, ****-****, number of ...

3.2 Value Chain

Primary production: Breeding: breeders select and raise livestock, taking care of the genetics, nutrition and health of the animals. Nutrition: livestock nutrition is crucial to meat quality. It usually includes forages, grains and supplements. Livestock health management: includes prevention and treatment of diseases as well as animal welfare management. Processing and slaughtering: Slaughtering: animals are transported to slaughter plants, where they are slaughtered. Processing: meat is cut up, processed and prepared for distribution. This may include slaughtering, primary processing (***). Distribution and wholesale: Packing: meat is packed to maintain freshness and quality. Distribution: distribution to wholesalers, retailers, restaurants and other sales channels. Retail and catering: Supermarkets and grocery stores: meat is displayed and sold to end consumers. Restaurants and food services: restaurants purchase meat to prepare and serve meat dishes to customers. Consumption: End customers: consumers who purchase and consume meat.

3.3 Distribution channels

Beef distribution in Italy is organized through several main channels:

Large-scale retail trade (***): this channel accounts for a significant portion of the market. About **% of Italians purchase beef products from hypermarkets and supermarkets. In addition, another *% of purchases are made at discount stores. TraditionalButcher Shops: traditional butcher shops still play an important role in beef distribution. Restaurant and Catering Chains: this segment, which includes restaurants and catering services, is responsible for a massive percentage of sales in the sector. Traditional Retail: Includes small retail stores and other traditional outlets. Other Sales Channels: there are also other smaller channels that cover ** percent of sales, which may include online sales, farmers' markets, and direct sales from the producer. National and Multinational Food Industries: these industries, which are involved in food processing and distribution, including beef, contribute ** percent of sales. [***]

GDO distribution channel focus

Beef distribution in the large-scale retail trade (***) in Italy in **** must interface with a number of challenges and complex dynamics. According to data from the Lombardo Producers Consortium **** and CLAL, the sector is severely challenged and is in danger of losing its self-sufficiency. Market prices are sometimes lower than production costs, and there is a lack of dialogue among supply ...

3.4 Main actors

The following is an overview of some of the key players in the sector.

Actors in the sector - Italy (***)

Actors in the sector - Italy (***)

Actors in the sector - Foreign

Industry Actors - Online

4.1 Type of Offering

Type of cut

In terms of supply, it is possible to classify different types of beef according to the cut given to it; specifically, a division can be made into three categories, which define its quality based on its organoleptic characteristics, composition, thickness of muscle mass, and amount of fat.

First-category cuts: these are cuts of fine meat, both veal cuts and beef cuts; specifically, these are the hindquarter and lumbar cuts. These parts are not very muscular and rich in connective tissue. Second-category cuts: located in the forequarter, back and ribs of the animal, this type of cut is used for roasts, stews, stews and stews or for stewing. Third category cuts: these are parts taken from the neck, limbs and belly. They are rather fatty and flavorful cuts and are suitable for broths and boiled meats, or for use as ground meat.

First-category cuts

First-category cuts produce highly prized types of meat, characterized by a more tender taste than other cuts.

Fillet: represents the most valuable type of cut by far; located below the loin, this area has little muscle. Two are obtained from each animal, with a total weight of about *-* kg. Loin: this is the upper ...

4.2 Prices

Below is an overview of monthly average prices by product variety in the last available month (***).

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4.3 New supply trends

Organic beef production represents a new supply trend that faces challenges and opportunities. This sector is characterized by the presence of predominantly small family farms and accounts for about * percent of the country's total cattle herd (***). The subsidiary market for organic beef in Italy has an estimated value of about *** million euros, accounting for *.* percent of total beef consumption. Despite growing demand for the product, the industry faces problems related to the lack of valorization of organic production, both due to logistical obstacles and insufficient price perception to compensate for higher production costs.[***]

A successful example in the sector is Fileni BIO, one of the leading organic breeding companies with over ** years of experience. Their supply chain includes animal reproduction and incubation, feed cultivation, slaughtering and artisanal meat processing, through to distribution and marketing. Fileni produces high quality certified organic meat and uses power generation systems from renewable sources, further reducing the environmental impact of organic livestock farming.

In terms of distribution, consumers can purchase organic meat directly from small local outlets, markets, fair trade buying groups, or through specialized online platforms that offer home delivery. The approach to organic meat consumption suggests "eating less but better," prioritizing quality while reducing ...

5.1 Regulatory framework

The Italian regulatory framework of beef production, is regulated by a series of regulations designed to ensure its quality and safety. These regulations cover all aspects of production, from the rearing to the slaughtering of the animal to the labeling and sale of the product.

As established by EU Regulation ****/****, the product must be labeled including information on the product name, ingredients, allergens, shelf life, country of origin and rearing of the animal, and lot identification number for proper traceability. In addition, for fresh beef over ** months of age, it is mandatory to indicate it is an "adult bovine," while, for those under ** months of age, the words "ve al" or "veal" must be included, depending on the age of the animal.

Another decisive aspect to be considered in production is compliance with hygiene standards, provided for in the EC Regulation ***/**** of the European Parliament and of the Council; this regulation fits into the general framework of the EC Regulation ***/****, which regulates the food hygiene of food of animal origin. In addition, the Regulation ****/*** on official controls to ensure the enforcement of food and feed law, establishes additional specific controls for food of animal origin. These provisions have been transposed at ...

6.1 Segmentation

Italian Companies

Foreign Companies

• Creekstone Farms
• Jack’s Creek
• Greater Omaha Packing
• Rangers Valley
• Ozaki Beef
• Scarlino Carni
• A.I.A. - Agricola Italiana Alimentare
• GESCO - Amadori
• Bencarni
• Lanza