Source: MEATINGPLACE, 5/26/15

Consumers are craving protein but increasingly turning to non-meat alternatives. A bright spot in the meat department is the organic and natural category, says Brian Diffenderfer, director of meat and seafood for Daymon Worldwide. Meatingplace asked Diffenderfer how the market is adapting to the growing appetite for organic.

Meatingplace: Organic and natural is the hot category. How are retailers responding on the meat side?  
DIFFENDERFER: We are seeing so much growth in that area right now. A lot of retailers are looking to dip their toe in the water. They find themselves struggling because they don’t know how to convey to the consumer that they have these products.

Meatingplace: What are some of the challenges for retailers that want to emphasize organic or natural meat?
DIFFENDERFER: There’s a lot of confusion out there especially for the younger generation and the new moms. They want to buy a better-for-you product for their kids, they don’t want the growth hormones and antibiotics, but they are still confused by the labels. All-natural has been abused by a lot of different suppliers. A lot of labels are coming out right now with GMO free. That’s where it gets cloudy sometimes for consumers.

Retailers have done a bad job of signage. It falls back to the retailer as far as what they want to be known as. Do they want to sell organic products or do they want to be known as a better-for-you line? Do they want to market humanely raised products? The consumer doesn’t know what the retailer is trying to convey to them.

Meatingplace: Are producers keeping up with the demand for organic?
DIFFENDERFER: USDA is making more of an effort now to get into some of these smaller farms and get them certified for organic. It was a little bit harder a year ago. They have recognized that there is growing demand and they’ve upped their game a bit. They are putting more people in the fields and certifying more of these local farmers than they were a year ago.

Meatingplace: We’ve seen more poultry processors develop organic chicken products. Will red meat follow?
DIFFENDERFER: One holdup we are seeing is the pork industry. The only thing we are seeing in the organic industry is the loin. A lot of producers are not willing to dive in without having a retailer dedicate to their program. The price is high. You have the whole hog to sell, and all the retailer really wants is the loin. Right now there is very little organic pork available in the U.S.
The producers are scared to jump out ahead and really have anything readily available because of the cost, and retailers are not ready to commit because they are not sure that the sales are going to be there.

Meatingplace: And beef?
DIFFENDERFER: The No. 1 barrier in the category for consumers is price. The No. 2 barrier is it’s hard to find. It’s pretty tough out there. Grass-fed -- 95 percent of the time it’s humanely raised product. That’s been picking up a lot lately as far as sales go. For retailers looking at organic beef and who want it to be U.S. product, we tell them you will have a bigger reach looking for humanely raised and organic. Your chances of succeeding will be better if you have both.

Meatingplace: What else are consumers searching for in the meat case?
DIFFENDERFER: More consumers are looking for that traceability. Whole Foods will have a map of the state where they are and a star for where the farm is on the map, so you know how close that farm is. They will have a book on the counter about the farmer, how long the farm has been in business and the products they make. They have actual butchers to answer questions.

Meatingplace: What impact is avian influenza having on the turkey market?
DIFFENDERFER: Hams will be a big selling point for Thanksgiving because there will not be enough turkeys. Some suppliers are already holding back on any new customers. I would not say we’ll have shortages, but they will not advertise turkey as strongly. The last thing they want to do is advertise and not have enough to support their ads or their current customers.

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