ontario pork news

Part two: this second article will look at more of the specifics about the in-store and ‘at-shelf’ context for helping shoppers make the intended purchase choices and consumption decisions and answers the questions “How do we get people to buy specific items and/or persuade an undecided shopper?” 

Chris Elliot, Senior Economist at Restaurants Canada gives a breakdown of 2016 and what you can expect to see coming in 2017 in the world of foodservice. 

Why do consumers make different decisions at-shelf than they indicated they would on the survey or in the focus group? Something mysterious and interesting happens in the conversion between ‘prospective consumer who is self-reporting likelihood of a future purchase’ and ‘actual shopper who is deciding on purchase choice for themselves and family, in-situ, in real time.’ 

One of the characteristics of the pork market during the first half of this year was the relative stability in pricing and supply. This was a relief, if not very unusual after the wild rides of 2014 and 2015. Recall that in 2014 no one really knew the real supply impact of the PED outbreak in the U.S. For the most part, the industry seemed to be always on the short side of demand and of expectations. That meant that the industry was usually short of hogs and pork and pricing reacted by exploding to record highs.

Last year ended and this year started off with an exceptionally large amount of media coverage on rising food prices. Speculation was rampant regarding how high inflation would charge in 2016. One of the main catalysts of the concern was the rapidly depreciating Canadian dollar. The highlight (or nadir, depending on your view) of the coverage was the famed $8 cauliflower.

The pork sector goes in to 2016 on very solid footing with regard to both supply and demand from a retailer/foodservice perspective.  In addition, the product is very cost/price  competitive with regard to the two main competing meats, beef and chicken and it has performed very well from a margin perspective for merchandisers.