Food Industry Responses to Consumer Concerns: Implications ... · Food Industry Responses to...

Food Industry Responses to

Consumer Concerns:

Implications for Cooperatives

Northeast Cooperative Council

66th Annual Meeting and Leader’s Forum

February 29, 2016

Rod Hawkes

Senior Extension Associate

Food Industry Management Program

LOTS of ISSUES!!!!• Obesity

• Gluten free

• Allergies

• Organic

• Biodynamic

• Veganic

• GMOs

• Hormones

• Pesticides

• Herbicides

• Animal rights

• Human rights

• Immigration

• Fair Trade

• Food Deserts

• Food Waste

• Microbeads

• Vegetarian

• Vegan

• “Ugly produce”

A partial list, in no particular order

• Natural

• Free From/Clean

• Local

• Sustainable

• Labor practices

• Labor availability

• Slavery

• Food safety

• Food security “A”

• Food security “B”

Societal Context

• Pervasive usage of Internet and social media

• Multi-media coverage of food and food industry

• Rising awareness of food related issues

• Rising concern about food sources & practices

• Levels of awareness and concern higher than

levels of understanding of issues

• Information and misinformation abound

• Confusion conflates issues for many people

Some recent books and films…

Food as Designer Drug?

Source: New York Times Magazine, Feb 24, 2013

Source: Environmental Working Group, 2015

FARM

FRESH

Consumers Concerned but Confused

Food Industry Context

• Most retailers perceive themselves as buying

agents for consumers

• CPG food manufacturers fighting for food dollars

• Retailers trying to be the brand you trust

• Shifting consumer eating and shopping habits

• Shifting, intensifying retail competition

• Online shopping rising rapidly from a small base

• Rising expectations: quality, price, convenience

• Supply chain visibility and traceability

• Food safety concerns dominate

Some Major Environmental Issues and

Organizations• Sustainability

• Pesticides, herbicides

• Hormones, antibiotics

• GMOs

• Air quality

• Water quality

• Fisheries viability

• Food Waste

Source: greenpeace.org/usa/

Seafood Ratings by Sustainability of Sourcing

Seafood Ratings by Health Impact of Species

Retailers that will not sell GE Salmon

Source: Friends of the Environment at http://www.foe.org/gefreeseafood

Source: Wall Street Journal, December 9, 2015

What’s better? Organic or Non-GMO?

“…grown without pesticides, herbicides, chemical fertilizers, growth

hormones, and above all GMOs.”

“…natural should only refer to the ingredients, not the way the product

is processed….”

“Food made by God is natural. Food made by a chemical company in

the lab is not natural.”

“If the human food product comes in a box or packet and any of the

ingredients have been processed, the term “natural” should never be

allowed.”

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“…It provides a halo for food producers without providing any actual

protection or valuable information to consumers. To this extent, it is

often downright misleading…”

A Natural Definition

Major Human Rights Concerns & Organizations

• Livable wages

• Child labor

• Slave labor

• Working conditions

• Immigration reform

Major Animal Rights Issues & Organizations

• Gestation crates for pigs

• Battery cages for chickens

• “Factory farms”

• Antibiotics

• Hormones

• Testing

Cage-free Hens and Eggs

HOW GOOD

Overall Sustainability Impact Ratings

How Good’s Product Rating Indicators

Source: howgood.com

Growing

Pesticide Practices Greenhouse Gas Profile

Fertilizer Practices Habitat Risk

Grower Type Site Diversity

Grower Record Livestock Index

Livestock

Feed Analysis Fertilizer Practices

Animal Welfare Antibiotics & Hormones

Pasture Use Waste Management

Pesticide Practices Historic Record

Takeaways…

• Awareness and concern are

widespread and growing rapidly

• Understanding lags as confusion

reigns

• Retailers & manufacturers are

changing policies and practices to

avoid controversy

• Growing pressure on farmers and

suppliers to change practices

THANK YOU!!!

Rod Hawkes

Food Industry Management Program

rod.hawkes@cornell.edu