Health and environment as growing drivers of food production

September 10, 2009

Health concerns will gain more importance in the future in the decision process of consumers when they buy their food.
More and more, we can hear and read about concerns and even rejection of the current production systems. Although this bad publicity is not always based on the most objective facts, it has been able to find a growing audience.

It must be true, it was in the newspaper

It must be true, it was in the newspaper

Since most consumers have little or no knowledge of agriculture and food, their only source of information is in the popular media. On the other side of the discussion, the agri-food industry is not getting through, because its message tends to be too defensive and too technical. Unfortunately for the industry, errors from the past (for example, the use of DDT) or cases from other industries (for example, tobacco) contribute to cast a shadow on its credibility. As I wrote my previous article “Less controversy thanks to transparency”, the agribusiness will achieve much more by opening up and having consumers visit their premises so that they can tell what they saw. They must organize more Open House days.

Therefore, for now, consumers have a certain perception of how food is produced, and it is not so relevant to argue whether this perception is correct or not. Perception simply is reality, and consumers act according to what they believe is true.
A little bit of this...There is a growing concern about environmental and health aspects of food production. About the environment, you can list very diverse things such as the depletion of wild fish stocks in the oceans, the interaction between aquaculture and wild fish stocks, manure and smell of intensive animal husbandry and impact of manure on soils and drinking water, deforestation of rainforest for ranching of beef or about growing GMOs (Genetically Modified Organisms). On the health side, consumers worry about food poisoning due to bacteria, such as E. Coli, listeria, campylobacter and salmonella, but also about residues of pesticides or antibiotics, as well as they worry about the use of hormones in animal productions. As the discussions get more animated in the US about the reform of health care and the cost of obesity, more and more people are wondering about whether the fast food diet is a proper one. Next to this, animal welfare is a growing concern by more and more consumers.
The answer to many of these worries has started to appear in the last few years with the growth of the organic market segment. When we see the growth and the performance of a retailer such as Whole Foods, there is no doubt that organic foods have a growing audience.

The concerns about the environment are forcing retailers, food service and businesses involved in the production chain of food to make changes. Some of the actions they have taken can be seen as marketing or PR, but they also have become mainstream. Just a look at how many restaurant and supermarket chains have already implemented sustainable seafood programs indicates how serious this change in consumer attitude is. Fast food chains are also actively working on reducing their environmental impact and set standards on where they source their meat, based on environmental concerns, such as no beef from ranches deforesting the Brazilian rainforest.
In the past, we have seen some examples of production methods that had to be abandoned, simply because no solution to cope with environmental problems could be found. This has been the case in The Netherlands where the level of intensification caused such manure surpluses and risks of animal disease to such a point that after many years of looking for viable technical solutions in vain, the government decided that the size of the national herds had to be reduced.
Similarly to what happened in Europe over the last decade, we can expect that much stricter rules in the use of antibiotics will be applied, and I expect a similar trend to a progressive elimination of the use of hormones in animal husbandry. About animal welfare, there should not be any surprise the day that only husbandry systems that allow enough “recreation” area for animals will be allowed. All of the above is going to have an impact on how and where food is produced. Systems will become less intensive, and progressively we will see more techniques to improve efficiency to compensate.

Past Food?

Past Food?

As I also had mentioned in another article (Future price of fish and meat: up), it is simple logic that with more people to feed, food is going to become more expensive. However, the relative prices of various food products also need to go along their relative health benefits. Today, it looks like only wealthy people can afford a healthy diet, as the price of “good” food is substantially higher than the price of what makes a nutritionally unbalanced meal. This clearly does not work in the direction of a healthier population at large.

The way consumers think will define the way we eat and produce our food. Many changes in consumption patterns, in production systems and in product offering are under way. I will get back later with more details on what my views are on this.

Copyright 2009 The Happy Future Group Consulting Ltd.


Innovation and tradition shape the future

August 12, 2009

Tradition in food can be quite resilientIn order to understand what changes are ahead of us, we need to realize that opposite forces are engaged in shaping the world of the future. As we all know, accepting change is always a slow and sometimes a difficult process. There are those who see the possibilities and those who see the drawbacks. The first train was going, supposedly, to get cows stop giving milk, but we now know that cows love to watch trains passing by. Probably, the first caveman who drew a picture of an animal on the wall was considered by some as a great magician and probably by others as pure evil. As such, such a struggle is very useful, as on the one hand it shakes immobility and open new doors, and on the other hand it prevents us to rush into the unknown without thinking first.

Change is part of our lives and that will not change. The problem that we face about change is actually about the pace of change, more than over the change itself. Over the last century, this pace has just increased steadily, thanks to more and more efficient technology.

If we look back the lifespan of the oldest living person, which brings us back to the end of the nineteenth century, just take a minute to think of all the changes that have occurred since then. There was no car industry, no antibiotics, no commercial airlines, no TV, no internet or cell phones, no supermarkets, just to mention a few things that we take for granted nowadays.

Although such a change is dramatic and has affected the way we live today, it has been a process that has needed time. Usually, it is said that more than 60% of the products that exist today did not exist 10 years ago and if we extrapolate this to decade to come, we can expect some even more spectacular changes.

Innovation is in constant motion and technology helps us to conceive and to use much faster than by the past. Yet, it is interesting to see that even with such a pace of change, traditions still play a very important part in our lives. Even with lots of modern gadgets, most cultures keep their specific characteristics. Their respective values do not evolve as much as our “things“, these just become part of the culture. This is an important point when it comes to innovation: what you offer must meet a need, if it does not, it will either fail, or at best be a fad.

Having a look at the future, you must wonder what the underlying trends of innovation are since it started. I can see several major constant areas of innovation:

  • Reducing physical labor.
  • Helping us live better and longer.
  • Increasing efficiency.
  • Helping communication.
  • Increasing mobility.
  • Offering more leisure and entertainment.
  • Making some people a little wealthier.

What could this mean for food production in the years to come?

  • high tech agriculture - photo BayerMore technology to improve efficiency of water use, fertilizer use, animal feed use, land use, energy use (objective: zero waste).
  • More mechanization, automation and robotising, especially in software more than hardware, working on precision (intelligent technology).
  • Greater focus on health and natural solutions for food and for agriculture/aquaculture/fisheries (objective: zero residue and zero contaminants in water, air, soil, and food).
  • Projects to repair environmental damage and include agriculture/aquaculture/fisheries in environmental management (restore and maintain sustainable food production).
  • Policies, and politics, to increase food production (disease control, regulation, more government intervention at strategic level, incentives).
  • Redistribution of markets with geographical shift of production and consumption areas.
  • Shift from convenient to practical food solutions (bulk meal components).
  • More education on agriculture, food and nutrition (balanced diets, food safety, traceability).

While such changes will come over time, consumers will still be looking for some level of tradition in foods. This can be about authenticity, regional specialties and recipes, or choosing to buy directly from farmers. Obviously, this is not a rational process, but it is more about the perception of “true” and “natural” production systems. After all, nostalgia is a constant of human emotions, too.

Copyright 2009 The Happy Future Group Consulting Ltd.


Rebuilding fisheries is a must for the future

August 5, 2009

Rebuilding fish stocks will be good for us allAs everyone knows, fish stocks have been depleted to levels that are not acceptable. This is the result of short-term thinking combined with highly efficient but stupid fishing methods. Not only fish is a high value food source, but oceans are complex ecosystems that we cannot afford to lose. Although aquaculture claims to be the way to compensate the supply of wild fish, this is only true within limits, as some aquaculture species are fed with fish meal and fish oil, and replacement of these products is also limited by the quantities that agricultural crops can supply, and consequently their price.

As one of the points that I mention in my presentation “Twelve trends for the future of food production” (under Presentations tab), we can expect that programs will be set up to rebuild wild fish stocks and bring the volumes back to levels with which sustainable fishing methods and quotas will help provide us with more secure supplies. This will be some sort of a stimulus plan for seafood with all stakeholders involved: government, fishermen, aquaculture industry, retailers, food service and consumers.

A recent report published by the Pew Charitable Trusts has reviewed the possibilities and the economic impact of rebuilding fisheries in the Mid-Atlantic Ocean, as well as the downside of doing nothing. A Canadian research has worked in a similar direction and tend to show that rebuilding fish populations is possible, citing a number of successful cases (see article).

All that comes out from these reports is that the situation, although quite serious, is far from lost, but it requires political will and organization to make it happen. This is exactly why all parties involved from whichever country concerned will have to act in a coordinated manner.

Copyright 2009 The Happy Future Group Consulting Ltd.


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