Global Meat Industry in Turmoil as Plant Closures Highlight a Changing Food Landscape

The global meat industry is experiencing a seismic shift, with 2024 marking a year of significant plant closures around the world. Rising costs, reduced livestock availability, and shifting consumer preferences are driving these changes, alongside the rapid growth of plant-based alternatives.

In New Zealand, the historic Smithfield meat processing plant in Timaru closed its doors after 139 years, leaving 600 workers jobless. The decline in sheep numbers, driven by land-use changes such as conversion to forestry, was a key factor in its closure. In Australia, the closure of AJ Bush & Sons, a 68-year-old family-run meat rendering business in Sydney, illustrating the challenges of operating in increasingly urbanised areas.

Source: Beef Slaughter House © Alf Ribeiro | Dreamstime.com

The United States has seen similar challenges, with Tyson Foods announcing the shutdown of its Kansas plant, following earlier closures of six chicken processing plants and a pork facility. Stricter environmental regulations and rising operational costs are making it increasingly difficult for older plants to remain viable.

In the UK the 850 year old Smithfield Meat Market is to close ringing in a massive generational shift in consumer consciousness and the demise of a ancient colonial institution.

Germany, Brazil, and Italy faced significant challenges too. Germany's Vion Food Group closed its Emstek pig processing plant and divested other facilities, citing competition and the impact of African swine fever. In Brazil, severe floods in Rio Grande do Sul disrupted production, destroying livestock and forcing temporary closures of meatpacking plants, while health crises like COVID-19 added further strain. In Italy, the Tonazzo Group exited traditional meat production after 136 years to focus on plant-based foods, while the country grappled with African swine fever and regulatory upheavals, including a controversial ban on lab-grown meat. These developments highlight the growing pressures of environmental, economic, and consumer-driven shifts reshaping the global meat industry.

The closures highlight four key pressures on the meat industry.

First, rising production costs, particularly due to labour shortages and new environmental regulations, are making operations expensive.

Second, livestock availability is declining globally, exacerbated by land-use changes and climate-related challenges such as droughts and floods.

Third, consumer preferences are changing. People are eating less traditional meat, driven by concerns over health, environmental sustainability, and animal welfare.

Source: Flickr - Aled Bets - Smithfield Meat Market London

Plant-based alternatives have gained traction, offering improved taste, texture, and accessibility. Younger generations, in particular, are adopting flexitarian diets, which limit meat consumption in favour of plant-based proteins.

Finally, regulatory pressures are adding strain. In the U.S., new environmental rules set to take effect in 2025 could force further closures as companies struggle to comply.

Countries like New Zealand and Australia, who have traditionally relied upon 'primary products exports', are slow in their response to changes occurring especially in the cultivated meat sector. Traditional importers like China and Singapore are very quickly ramping up production of cellular meat products by 'fast tracking' regulatory procedures and noting that 'food' IS a national security issue.

As traditional meat producers face rising challenges, plant-based and alternative proteins are emerging as viable solutions, marking a fundamental transformation in the global food system. For consumers, this represents not just a change in what’s available on the shelves but a broader cultural shift towards more sustainable eating habits. The future of meat will look very different with the journey well underway.

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