Meat products, naturally

NEMATEKAS I PROFILE

Striving for perfection in meat products has become an obsession for Lithuanian family-owned Nematekas. Managing Director Justas Vaicekauskas outlined to Andy Probert the company’s desire to become a more prominent export player, with a steely resolve to never cut corners on quality.

From a small-scale operation in 1994, Lithuania’s Nematekas has emerged as a formidable quality meat manufacturer domestically and abroad.

“The company began in modest facilities with a small number of workers and a limited work space to showcase meat processing equipment,” reflected Justas Vaicekauskas, Managing Director and son of the owner. “It was tough. But the company gradually expanded its meat product assortment and met market demand with a different product, price range, and local consumers liked them.”

Rapid growth followed and the company expanded production to become a large meat and fresh poultry processing company, producing over 60 tonnes of meat and meat products daily.

Nematekas today offers high-quality smoked, cooked and dried processed meat products; various types of poultry (fresh, frozen, marinated and cooked); as well as burgers, nuggets, and other ready-to-cook convenience items.

In 2000, it was one of the first companies in Europe (and the only one in Lithuania) to begin using probiotic cultures, biologically useful ingredients, to produce cold-smoked and dried sausages. It was also among the first in the meat processing market to produce E-free sausages without additives or preservatives.

The company established a chicken slaughterhouse and cutting plant in 2004, enabling two family businesses to converge –chicken farming and meat processing.

Farm to fork

The chicken-rearing side of the business is fully integrated apart from feed production. Having day-old chicks supplied from a breeding company, it operates an entire supply chain operation –parent stock farms, a hatchery and rearing the chicks up to maturity on broiler farms.

“We now have 40 farms to draw the chicken supply from for meat production and achieve a highly effective farm-to-fork strategy,” said Mr Vaicekauskas. “We assert high standards of control across our production processes, maintain chicken welfare, and undertake activities to minimise micro-biological risks throughout the supply chain.”

Quantity-wise, chicken meat accounts for 60% of business, but only 50% of annual turnover. The company employs 745 people, with 500 at its meat processing plants and 245 in the family farming-related activities, which also includes pig-rearing.

The newest addition to Nematekas’ product portfolio is its clean-label Pro Natura line of meat products that are truly unique in the local as well as European market. Pro Natura products do not contain any phosphates, artificial colorants, preservatives or GMO, and even sodium nitrite is avoided, making these products the perfect choice for consumers that prefer more natural options.

Sodium nitrite is one of the widely used ingredients in processed meat products – it enhances meat colour, flavour, and prolongs shelf life, but at the same there are studies that suggest products with nitrite should not be treated on high heat to avoid the formation of nitrosamines. By avoiding sodium nitrite in its products, the company is following its objective of providing added value to processed meat options for customers.

“It is a perfect choice for consumers to have a clean label product. Currently we are offering Frankfurters, cooked sausage, chicken ham, cooked salami and dried sausage produced the Pro Natura way, while we expect to add even more products in the near future” Mr Vaicekauskas listed.

Award winning

Its products have received awards in Lithuania and at international events. At IFFA – labelled as ‘the world’s leading trade fair of technology for meat and alternative proteins – it has received 15 awards over the years, including Product of the Year, and many gold, silver and bronze medals. In 2008, the company achieved its BRC food certificate and has been operating both facilities under BRC or IFS food safety standard since then.

Company General Manager, Egidija Vaicekauskiene ., has also been awarded for constant modernisation of manufacturing processes and expanding product offerings in Lithuania and abroad.

Mr Vaicekauskas asserted the company was among the largest in Lithuania’s chicken, meat processing, and pork production.

“As a company, we produce 1,700 tonnes per month in total, out of which 1,000 is raw poultry meat, and the rest is processed meat

NEMATEKAS I PROFILE

products. From that, we export on average about 50% of our poultry meat, mostly to Scandinavia and Western Europe. Our priority for chicken meat is Scandinavia as we are able meet the stringent regulations on microbiology and quality requirements.”

With an annual turnover of €30 million, local sales are to all the main retail chains in Lithuania and Baltics. Nematekas’ main export client base for chicken meat is 60% to HORECA, 20% for production clients, and the remainder is for private label retail clients. Around 90% of its exported processed meat convenience products are produced for private labels.

“Lithuania, as a small market, doesn’t provide opportunities for large scale production of individual products,” explained Mr Vaicekauskas. “Retail clients expect you to offer an entire product portfolio to meet demands of different consumers.

“But it is good incentive for Nematekas to innovate and develop new products because competition is intense. All food producers are competing for the same shelf space. Innovation and products with added value are our core strategic goals.”

Innovations

Nematekas’ processed product portfolio includes many brands, and one of the most popular in local market is Mažyliu (‘little one’), a product line of cooked sausages, frankfurters, pate, nuggets and burgers targeted to a young audience. All are developed to be free of preservatives, colourants and flavour enhancers. Additionally, these products were recently enriched with iodized salt in order to provide an additional source of iodine in people’s diet.

Clean label products are another product group that Nematekas is known for. Mr Vaicekauskas said: “Our Jokiu˛Pride . tiniu˛ E” product line, which translates as ‘no added E numbers’, emerged from a desire to provide a product that has the best ingredients and a notion to make a clean label product.

“We cooperated with a local university and German spice producer during the development, and the brand was realised in 2000. In the last 18 months, we have enriched the product with vitamin D, which is beneficial for human welfare.

“We also consistently work with European retailers and adapt our products regularly to meet their demands. The 2021 summer season was a success in the sales of raw pork sausages with mushrooms as well as various marinated chicken cuts intended for grilling.”

He added: “Our strategy remains focused on developing high quality products and expansion in the export markets. We are able to offer a wide range of value added products, flexibility and creativity to our current and potential business partners.”

Managing challenges

Nematekas has been able to manage the market’s volatility in demand and supply during the pandemic, with Mr Vaicekauskas revealing a couple of the ongoing obstacles the business was having to overcome as a result.

PROSUR

Prosur is proud to partner with Nematekas to provide their natural clear label solutions without the need to use synthetic or non-synthetic nitrites.

With drastically changing consumer behavior and perception, one of the challenges for the food industry is the perceived healthiness of its products. A healthier, balanced diet supports a stronger immune system and empowers the consumer in these demanding times. All-natural positioning and preservative-free claims are now more than ever key drivers for consumers.

“Retailers were unable to predict their stock and product they needed even for the next day. On top of that, people were stockpiling, and that was a real challenge.”

Mr Vaicekauskas also had to handle the challenge of a surplus of poultry meat in Europe due to the likes of Poland pushing large heavily discounted volumes onto the market.

“Due to mass production and a competitive free-floating currency, Poland has sold at a low price in Lithuania and other countries. In most cases, it was well below production cost and we have had to accept that price level to remain in the market, even though it was almost impossible and has lasted a long time.

“It went through the whole supply chain, and still is, as poultry price levels are still highly affected by the decrease in demand. We now see a similar situation developing in the European pork market. Of course, we hope it will come back to some equilibrium where all players of the supply chain could enjoy a level of sustainability.”

He added: “While we cannot compete with the multi-national players, our advantage is that we are highly flexible for clients. We aim to be a reliable partner in their future ambitions to flourish.

“They are always assured by us, because we abide by quality in everything we do: our strict controls, IFS certified facilities, excellent raw material standards, and added value in products. All combine to help Nematekas to be a highly well-respected and successful business.” n