Meat Processing Industry

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MEAT PROCESSING INDUSTRY Industry Analysis

INDUSTRY BACKGROUND

Meat Processing Industry

composed of several animal disassembling facilities which slaughter, break down the animal body into smaller portions, and process the meat for consumer consumption or further processing. firms that manufacture a wide range of fresh or frozen products and sells for grocery chain stores, meat distributors, wholesalers, restaurants and hotel chains, foodservice, and further processors as well.

Meat Processing Industry in Ilocos Norte


the industry is generally composed of smallscale proprietors whose products are directly sold in the public markets and the consumers. It is more of a home industry It is estimated that there are one hundred (100) meat processors in the province.

Bacon

Ham

Products are being sold in the local market, with some finding their way to neighboring provinces or cities and to Metro Manila, where there is demand from Ilocanos who are residing there or from Non-Ilocanos who have acquired a taste for the Ilocos-type longganisa and pork chicharon. Likewise one of the champions of the industry is already supplying a big mall located in San Nicolas, Ilocos Norte and has already opened its branch in Dagupan City.

As early as 5000 B.C., dry salting and pickling of meat were already practiced. In the 19th century, following the discovery of microorganisms, the application of scientific principles in meat curing started With the invention of refrigeration, a variety of mildly cured meat products were developed, i.e. luncheon meat, corned beef, frankfurters, salami, bacon and bologna. The increase in the prices of meat cuts and subsequent development of low cost protein meat substitutes from soybean, wheat, and milk provided the impetus for the development of low cost meat products, i.e. hamburger, extended ham, frankfurters, and other restructured meats.

The domestic sales performance of the meat processing sector of Ilocos Norte is relatively high and remains a profitable business in the manufacturing and retailing venture. Sales performance reports by the three (3) business champions is eleven million (PhP 11,000,000) in the year 2010. In the years 2008 and 2009 sales generated was seven million two hundred thousand pesos (Php 7,200,000) and nine million two hundred thousand pesos (PhP 9,200,000), respectively. Based on this date, sales increase per year is around 20%-25%. Employment size of the sector ranges from 5-12 inclusive of the members of the family who are directly involved in either the processing or marketing aspect of the business according to DTI, Ilocos Norte.

BASIC SUPPLY SITUATIONS

Selection of Meat

Chilling

Trimming

Slicing

Cutting

Curing

Smoking

Meat grinder (Mincer) Bowl Cutter (Bowl Chopper) Filling Machine (Meat Stuffer) Smokehouses Brine injector Tumbler or Massager

Vacuum packaging machine Mixer/Blender Sausage Tie Linker Frozen Meat Cutter Blast Freezer Walk-in Freezer Rotogravure Printing Machine

Meat Condiments Salaries and Wages/Commissions Packaging Transportation Expense Depreciation Cost Repairs and Maintenance

Venvi Corporation is identified as a major source of raw materials (pork) while 7 others are minor sources. Raw materials (pork) are also sourced from hogs grown in nearby or outlying areas

BASIC DEMAND CONDITIONS

the estimated demand for processed meat products in Ilocos Norte alone is 284,008 kilograms per month or 3,408,096 kilograms per year.

MAJOR DETERMINANTS OF DEMAND


individuals taste and preference price industrys environment adjustments in production and marketing the substitute goods like other ready to cooked products and major trends in the meat industry

ENTRY BARRIERS

INDUSTRY STRUCTURE

MAJOR PLAYERS
MMSU Food Processing Center Malabed Toledo Gladfoods Products Pascua Meat Products Basilios Chicharon

MMSU Food Processing Center


Way back 1987, the Food Processing Center was established processing about 10-20 kilos of meat daily into embutido and Longganisa enough to meet the demand of the employees of MMSU. As time passed by, the increasing demand kept on flourishing until it has reached outside the university and then the project leader considered it fit to ask for more machine and tools to be used in processing a larger volume of meat due to the expanding demand.

Having a monthly capacity of 1,5000- 1,8000 kilos, the center is able to supply the demand of Pangil Beach Resorts, all branches of Johny Moon Caf in Ilocos Norte, Batac MultiPurpose Cooperative, the MMSU employees and some outside buyers The center secured approximately P4.5M gross sale last year netting P700,000 profit

Malabed Toledo
Emiliana Malabed, co-owner, strategically came up with a brilliant idea in converting pork into Longganisa and after long years of taming public acceptance, finally this paved her way to be the frontrunner in Longganisamaking in Batac

The production of bagnet and its other dietcrushing counterpart, Longganisa has helped sustain Malabed-Toledo to stay flourishing in the industry, netting P20 million annual gross sales Malabed Toledo secures orders from Herencia Paoay- which serves Ilocano fusion cuisine, Sitio Remedios of Batac and Manila Emapanada Nation

Gladfoods Products
Gladfoods Products is currently managed by Gladwyn dela Cruz. It has put up its factory, production area, with approximately 250 m.2 dimension in Brgy. Lusong, Laoag City Gladfoods has a total monthly production capacity of 9,300 kilos broken down into 2,600 kilos for Chicharon, 6,000 kilos for Longganisa and 700 kilos for barbecue. Gladfoods annual average sales risen up to P12 million

Pascua Meat Products


Flaviana Pascua, the sole proprietor established Pascua Meat Products, a microsized company at Brgy.6, San Nicolas, Ilocos Norte, with a present production area of 70 square meters.

Having a monthly production capacity of 1,560 kilos equally divided to Chicharon and Longganisa is enough to meet the demand of its domestic markets, which mainly are located in the towns of Badoc, Pasuquin, Solsona, Dingras, and San Nicolas, and even out in another province, La Union, particularly in San Fernando City Pascua Meat Products grosses annual average sales of P1.2M from its operations

Basilios Chicharon
Basilios Chicharon, presently managed by Marison Basilio, started its operations in 1990. It has its 50-m.2 factory situated at Brgy.8 San Nicolas, Ilocos Norte. Basilios P600, 000 average annual sales is through satisfying its increasing markets in Bacarra, Paoay and San Nicolas Has monthly production capacity of 500 kilos each for Chicharon and Longganisa

INDUSTRY CONDUCT, PERFORMANCE AND PROSPECTS

POTENTIAL ENTRANTS

POTENTIAL ENTRANTS
Meat processing industry in Ilocos Norte is easily access by households producers Indirect potential entrants like branded suppliers and powerful buyers that take the same products outside of the province and would market it here

COMPETITION AND SUBSTITUTES

COMPETITION AND SUBSTITUTES


The close substitutes however are the products that also provide instant preparation. Examples of the mentioned are instant noodles, can or corned tuna or sardines, and other ready-to-eat-packaged products for meal consumption

The advantage of these kinds of product over processed meat products is that it has established easier contact to buyers. These products are present in every sari-sari store of any locality which is surely being available one other advantage is that meat processed products are more perishable

On the imported products side, more likely same products are offered. The only thing that makes the conflict is the certain belief that imported products are better than our local products which therefore make the imported products a substitute. But on the good side of it, market competition is not present, only on the individual preference that creates the competition.

SUMMARY INDUSTRY ASSESSMENT AND CONCLUSION

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