Domestic and Global Consumer Issues

by Sandy Larocque

With the fast changing world of farming and consumer purchasing knowledge, it is important that all producers stay on top of emerging trends in the retail business. This enables all of us to make informed decisions and devise educated marketing strategies.

As the old adage goes -- 20/80 rule -- it is the same and holds true today. 20% of the population has 80% of the wealth. 80% of the population has 20% of the wealth. We have to remember these facts when we market our products whether they be animals, meat or milk products.

There are three consumer “sniff” factors used when a consumer purchases a product: safety, security and stability. One of the most important issues for today’s consumer is convenience.

An example of this movement towards convenience is the advent of bottled water. It is today a multi-million dollar industry, but not that many years ago, bottled water was unheard of. If you would have told your great grandparents, that you “buy” water, they would have been shocked.

There exists in Canada, five giant food retailers. These groups have increased their percentage of the marketplace rapidly, taking a large amount of consumers from the mom and pop corner stores. These giant food retailers had 38% of food sales in 2000, -51% of food sales in 2005 and are projected to have 70% of food sales in 2010.

Along these same lines are the increases that are being seen in the fast food industry. In 1967, 28% of meals were eaten away from the home. In 2003, 46% of meals were eaten away from the home. By 2010 63% of meals will be eaten away from the home.

Also affecting the food industry are the increased dietary trends in developed countries. Right now, at any given time, 12% of the population are on a “diet”. And 31% of the population are looking for a “quick fix” as far as diets and losing weight are concerned.

The top attributes that are viewed by affluent consumers are:

-Natural

-Organic

-Local

These are now the fastest growing businesses in North America.

From these trends, a serious producer wanting to produce and market a product, should be able to glean the information necessary to fill some of the criteria mentioned above. We know from many sources, that consumers want healthy, wholesome food and would prefer to buy locally.

What is stopping you?????