Meat processing and animal by-products 129
and non- market actors. Although institutions are most often seen as a stabilising element of the system, they may also play a role in fostering novelty and
transforming sectoral systems. In particular, a disruptive change in institutional
settings, such as the introduction of a radical change in regulations, fundamentally changes the belief system and established practices of an industry,
and potentially leads to changes in innovative behaviour.
In the meat- processing and ABP industry, a major driving force is precisely
institutional change in the form of regulations to protect the health of humans
and animals. Since the 1990s, regulative changes have become the key mechanism of change affecting and shaping input and demand of the industry. The
main input is defined as side- streams from meat and livestock production.
Because of their human and animal health and welfare risk, ABPs are a
heavily regulated raw material. The main demand is likewise shaped by
market regulations such as trade barriers and sanctions, which is characteristic
for agri- food products. Whether trade barriers are supported by arguments of
health or environmental reasons or politically motivated as a consequence of
a bilateral, diplomatic crisis, trade barriers have huge consequences for the
market opportunities of the meat and ABP industry. Together, regulations
shape the input and demand of the industry and thereby also influence market
opportunities and innovative behaviour of firms in the industry.
The following section will elaborate and exemplify these dynamics through
our empirical insights of the meat processing and ABP industries in Norway
and Denmark. The analysis builds on 20 interviews: 12 interviews with actors
from the industry in Denmark and eight interviews with actors from the
industry in Norway. The interviews were conducted from 2015 to 2018 and
aimed to cover topics such as the key dynamics of the industry, the historical
development and key events of the industry, innovative practice and the
development of markets and new products. In addition to the interviews, the
analysis builds on secondary material such as EU directives, historical newsletters from interest organisations, articles from news media and reports and
secondary literature of the sector.
7.3 The meat processing and ABP industry
The meat processing and ABP industry primarily encompass two types of
firms: producers of ABPs and processors of ABPs. The production of ABPs
occurs in all the nodes of the meat value chain from animal production, at
slaughterhouses, and at the facilities of further meat processors (see Figure
7.1). Processing of ABPs has historically been a task for rendering companies,
which are dedicated ABP processors. Rendering companies have played an
important role in securing and managing the huge amounts of by- products
produced from the meat industry to avoid hazardous risks. Today, dedicated
ABP processors include incumbent rendering companies but also new
entrants where the focus is also on upgrading specific types of ABPs (e.g.,
blood, hides and bones) for human consumption.
and non- market actors. Although institutions are most often seen as a stabilising element of the system, they may also play a role in fostering novelty and
transforming sectoral systems. In particular, a disruptive change in institutional
settings, such as the introduction of a radical change in regulations, fundamentally changes the belief system and established practices of an industry,
and potentially leads to changes in innovative behaviour.
In the meat- processing and ABP industry, a major driving force is precisely
institutional change in the form of regulations to protect the health of humans
and animals. Since the 1990s, regulative changes have become the key mechanism of change affecting and shaping input and demand of the industry. The
main input is defined as side- streams from meat and livestock production.
Because of their human and animal health and welfare risk, ABPs are a
heavily regulated raw material. The main demand is likewise shaped by
market regulations such as trade barriers and sanctions, which is characteristic
for agri- food products. Whether trade barriers are supported by arguments of
health or environmental reasons or politically motivated as a consequence of
a bilateral, diplomatic crisis, trade barriers have huge consequences for the
market opportunities of the meat and ABP industry. Together, regulations
shape the input and demand of the industry and thereby also influence market
opportunities and innovative behaviour of firms in the industry.
The following section will elaborate and exemplify these dynamics through
our empirical insights of the meat processing and ABP industries in Norway
and Denmark. The analysis builds on 20 interviews: 12 interviews with actors
from the industry in Denmark and eight interviews with actors from the
industry in Norway. The interviews were conducted from 2015 to 2018 and
aimed to cover topics such as the key dynamics of the industry, the historical
development and key events of the industry, innovative practice and the
development of markets and new products. In addition to the interviews, the
analysis builds on secondary material such as EU directives, historical newsletters from interest organisations, articles from news media and reports and
secondary literature of the sector.
7.3 The meat processing and ABP industry
The meat processing and ABP industry primarily encompass two types of
firms: producers of ABPs and processors of ABPs. The production of ABPs
occurs in all the nodes of the meat value chain from animal production, at
slaughterhouses, and at the facilities of further meat processors (see Figure
7.1). Processing of ABPs has historically been a task for rendering companies,
which are dedicated ABP processors. Rendering companies have played an
important role in securing and managing the huge amounts of by- products
produced from the meat industry to avoid hazardous risks. Today, dedicated
ABP processors include incumbent rendering companies but also new
entrants where the focus is also on upgrading specific types of ABPs (e.g.,
blood, hides and bones) for human consumption.