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Raw Costs and Consumer Trends Drive the Value of Egg Whites

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Raw Costs and Consumer Trends Drive the Value of Egg Whites VOLUME 8 / NUMBER 4 / FALL 2013 / QUARTERLY the newsmagazine for the food industry professional McDonald’s Egg White Delight McMuffin. Raw costs and consumer trends drive the value of egg whites Consumer trends are often the main driver Egg whites became the clear option when behind research and development. There’s “Upwards of $7.00 looking at breakfast proteins and have no doubt they guide movements in apparel, popped up on menus across the nation. automotives, and technology, and they are per pound, whites Major shareholders of the breakfast pie also important in the food and beverage shattered the like Dunkin’ Donuts and Starbucks industries. During the last few years, no quickly added egg white offerings. Subway, two trends seem more important than previous record…” Panera Bread and Burger King also convenience and health; areas which have followed suit. It wasn’t until April of 2013 driven innovation and buying patterns in though that McDonald’s, launched their egg products. possess one of the highest obesity rates in egg white sandwich. the world, second only recently to Mexico. Quick service restaurants (QSRs) have Suppliers of the company were forced taken full advantage of their ability to In the last two years QSRs have shifted to build inventory ahead of anticipated move the customer in and out, allowing some of their focus to healthier options. demand. At the same time of year when them to grab a quick bite during their busy With 85% of breakfast consumed outside egg whites typically receive a boost from day. Some have struggled to catch on to the of the home in this channel, it was New Year’s health and dietary trends, health movement however, and are often important for them to update their menus associated with the fact that Americans and target the health conscious customer. Continued on page 65 The jobs UNEMPLOYMENT: report may not should the protein industry be concerned? As of July 2013, the United States’ official unemployment rate dropped to 7.4 percent, down from the tell the recessionary high of 10 percent hit in October of 2009. It’s been a long road from the 2007-2008 crash and whole many look to this figure as one of the benchmarks for gauging recovery. However, as is occasionally mentioned in passing conversation among TV pundits, the unemployment rate rarely tells the full story. When we story… look through the eyes of the protein industry, where sales depend on the populous working and earning Continued on page 66 On the inside… 6 Economic 40 Proactive in 30 Duck eggs - A truly unique modeling and restoration and and different flavor profile. research show rebuilding of the Finding a growing role in demand effect. Watershed. the kitchens of the Gap widening Maryland’s having out-of-the-box between indicators success with state thinking of demand level marketing chefs. for premium program for blue crab commodity beef. and oysters. www.lamonicafinefoods.com 2 • URNER BARRY’S REPORTER / VOL. 8, NO. 4 / FALL 2013 URNER BARRY’S REPORTER • VOL. 8, NO. 4 • FALL 2013 Center of the plate the newsmagazine for the food industry professional Page 1 Raw costs and consumer trends PUBLISHER drive the value of egg whites Paul Brown Jr. SENIOR EDITOR Russ Whitman MANAGING EDITOR Joe Muldowney CONTRIBUTORS Russell Barton Janice Brown Jamie Chadwick Rusty Dean Page 1 James Kenny Unemployment: Frank McQuarrie, Jr should the protein industry Maria Morales be concerned? Brian Moscogiuri Gary Morrison Michael Ramsingh 53 A glimpse into the economic future of the Angel Rubio Main ingredients poultry industry Jenny Wassel 4 Record beef prices kicked off the summer 58 “We’ve gone and changed MaryAnn Zicarelli 5 BAP program reaches milestone, grows with breakfast forever. Again...” COPY EDITOR addition of new farm standards 59 New front-of-product Linda Lindner 6 Beef demand may vary with quality labeling system 9 The cruise industry and the trickle down to 62 The customer’s ART DIRECTOR challenge to obtaining Glenn F. Juszczak food production accurate recipe costs 12 Louisiana’s seafood branding ‘turns the corner’ PRODUCTION MANAGER in 2013 63 Selling seafood by the Chris Ashley kilo and kilobyte 18 Forsman Farms...keeping up to industry challenges 64 CMMA /Scholarship ASSOCIATE DESIGNER 20 U.S. shell eggs continue to cross the border Program 2013 winners Maria Morales 24 How beef can compete ADVERTISING 26 Promoting eggs as the preferred back-to-school Janice Brown breakfast choice A la carte Terence Wells 28 NFI’s 2013 future leaders class in full swing from 10 Dinner is—printed? South Beach, Florida to the West Coast 11 Characteristically crunchy turkey croquettes SUBSCRIPTION INFORMATION 800-932-0617 32 Shrimp shortage stokes global competition for 16 Technomic: latest poultry consumer trend report Ecuadorian product sending offers higher in 2013 19 Help the National Museum of American History 36 U.S. importers say tilapia preserve agricultural heritage prices may rise further 30 Delectably delicious duck eggs as high production costs 34 Food truck popularity revs up limit farmers 42 Oscar Mayer’s Weinermobile 46 Value campaign inspires program offers pork chop drop rare marketing Urner Barry’s Reporter (ISSN 1944771X) is published 48 New website something experience quarterly by Urner Barry Publications, 182 Queens to gobble about Boulevard, Bayville, NJ 08721. Periodicals Postage 44 Softshell Clam Paid at Bayville, NJ 08721 and additional offices. POSTMASTER: Send address changes to Urner 47 To be (perfect), or Barry’s Reporter, 182 Queens Boulevard, Bayville, not to be? NJ 08721. News bites 49 The recipe for $5/lb Subscription to Urner Barry’s Reporter is free. Mail 8 Getting Hooked on NFI’s newsletter bacon subscription orders and changes to Urner Barry’s Reporter, Subscription Department, 182 Queens 14 Top U.S. burger chains in satisfying customers 52 Use of fewer growth drugs may affect cattle Boulevard, Bayville, NJ 08721 or call 800-932-0617. 22 Turkey’s time to shine weights Printed in the U.S.A. Copyright © 2013 38 New developments in the pork market spur 54 Fertilizers, more than just making things grow Tel. 732-240-5330 • Fax 732-341-0891 innovative features on COMTELL® 56 Edible QR codes bring sustainable sushi to life www.urnerbarry.com • [email protected] 40 Coalition of Maryland seafood supporters give big 57 The lone star tick is causing meat allergies Nothing may be reproduced in whole or part push to boost regional interest without written permission from the publisher. 60 Counting the chicks before they hatch 50 Cost of raising a child in America today 61 Name that EGG - The Reporter Quiz VOL. 8, NO. 4 / FAll 2013 / URNER BARRY’S REPORTER • 3 What’s behind the headlines?.. Record beef prices kicked off the summer There has been a lot written Cutout rose 61.12% during the interest from Mexico. Now we turn our and discussed by the news same period, nearly 65% attention chicken. It seems that chicken media throughout the faster even while slightly and more specifically boneless, skinless middle part of 2013 “Where’s falling back from record chicken breasts has become a staple in in regard to record levels in 2011. Pork everyone’s shopping cart. Retailers focused high beef prices. You the beef? exports seem to be the their activity on boneless/skinless breasts may have noticed Maybe not on driving force in prices. with ad features well above the five year the headlines or your grill this Export sales buoyed average in 2013. This helped push the experienced the sticker prices to those records Urner Barry Chicken Index 22.33% shock in the check-out summer” in 2011, but fell as bans higher from July 2009. Chicken benefited line of the grocery store. kept a lid on exports from reduced supplies and increased more recently. demand from Mexico as the The Urner Barry Choice Seafood is country needed to fill its Cutout, a composite of carcass cuts another option for needs as avian influenza utilizing the present trading value of those the protein consumer, “US beef hit the country. These items at the wholesale level, hit a record and one of the most figures all compare of $2.068/lb just before Memorial Day popular items is prices set new to a more subdued on May 23, 2013. The Select Cutout at shrimp. The UB high as spring rise in CPI-Meats, the same time was $1.916/lb, just shy of White Shrimp Index barbeque season Poultry, Fish, and Eggs $1.951/lb, a record set in February 2012. has also hit record Category. This basket Retailers passed the price increase onto highs in 2013, with a heats up” of goods advanced consumers with elevated prices being paid gain of 64.49% during 15.85% during this at the retail level. There were a number the comparative time time (ending May 2013) as of factors, some dating back to period. The tight global substitutions are allowed to 2008 that contributed to the supply due to EMS be made. The moral of the story rise in prices that peaked (early mortality syndrome) is that there is more than one way to look right as demand does “Beef in Thailand was the at things. And like so many things, the for the start of grilling largest contributing headlines are there to grab your attention. season this year. Food prices hit factor. As a result, Ask where the data comes from and what and fuel prices rose record highs buyers had to source the story is trying to represent. It will help sharply right before product from other you make a more informed decision.
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