Food & Consumer Demand in the 21 st Century Mid-South - - PowerPoint PPT Presentation

▶
food consumer demand in the 21 st century
SMART_READER_LITE
LIVE PREVIEW

Food & Consumer Demand in the 21 st Century Mid-South - - PowerPoint PPT Presentation

Sep 14, 2023 180 likes •486 views

Food & Consumer Demand in the 21 st Century Mid-South Agricultural Finance Conference University of Tennessee-Martin Matthew C. Roberts, PhD | www.kernmantlegroup.com 9 August 2017 US Wealth Continues to Rise US Wealth Continues to Rise:

slide-1
SLIDE 1

Food & Consumer Demand in the 21st Century

Mid-South Agricultural Finance Conference University of Tennessee-Martin

Matthew C. Roberts, PhD | www.kernmantlegroup.com 9 August 2017

slide-2
SLIDE 2
slide-3
SLIDE 3
slide-4
SLIDE 4

US Wealth Continues to Rise

slide-5
SLIDE 5

US Wealth Continues to Rise: Disposable Income

slide-6
SLIDE 6

US Wealth Continues to Rise: Disposable Income

slide-7
SLIDE 7
slide-8
SLIDE 8

If you had to choose among the following things, which are the two that seem most desirable to you?

  • 1. Maintaining order in the nation.
  • 2. Giving the people more say in important political

decisions.

  • 3. Fighting rising prices.
  • 4. Protecting freedom of speech
slide-9
SLIDE 9
slide-10
SLIDE 10

Maslow’s hierarchy of needs:

slide-11
SLIDE 11

Maslow’s hierarchy of needs:

This is where food comes in.

slide-12
SLIDE 12

I must study politics and war that my sons may have liberty to study mathematics and philosophy. My sons ought to study mathematics, philosophy, […] commerce, and agriculture, in order to give their children a right to study painting, poetry, music, architecture, statuary, tapestry, and porcelain.

  • -John Adams
slide-13
SLIDE 13

I must study politics and war that my sons may have liberty to study mathematics and philosophy. My sons ought to study mathematics, philosophy, […] commerce, and agriculture, in order to give their children a right to create hashtags such as #Resist and #OccupyWallStreet, spend thousands on tattoos and piercings and organize anti-globalist protests at Starbucks on their MacBooks.

  • -John Adams [paraphrased]
slide-14
SLIDE 14

Belongingness and Esteem:

  • We are more

connected than ever.

  • We are more

alone than ever.

slide-15
SLIDE 15

How do you explain who you are?

Farmer Banker Dad Mom Christian Volunteer Hunter Coach John Deere Owner Golfer

slide-16
SLIDE 16

When I was a kid, identities were:

  • Church
  • School/town
  • Work
slide-17
SLIDE 17

Where do we find our community?

  • More Americans

bowling than ever.

  • Fewer members
  • f bowling

leagues.

slide-18
SLIDE 18

In 2017?

slide-19
SLIDE 19
slide-20
SLIDE 20

Belongingness and Esteem mean radically different things for food.

  • Food is our identity, not

just sustenance.

slide-21
SLIDE 21

But this has happened in many other industries:

  • Ford’s Model T
  • Clothing
  • Shoes
  • All are attempts to

break away from commoditization.

slide-22
SLIDE 22

The joys of price discrimination…

Price Quantity

One price for all Total Revenue = Price x Quantity

slide-23
SLIDE 23

The joys of price discrimination…

Price Quantity

Beef

slide-24
SLIDE 24

The joys of price discrimination…

Quantity

Offals Freezer Beef & Ground Beef T-Bone NY Strip Filet Mignon

slide-25
SLIDE 25

What does this mean for you?

  • Identification through consumption is a luxury good.
  • There will always be commodity channels:
  • Differences in wealth dictate that.
  • We are more alone than ever.
  • We have substituted `social’ media for social interaction.
  • We live in a culture searching for comfort, ease &

belonging.

  • And we use $$$ to try to get it.
slide-26
SLIDE 26

How should we react as an industry?

  • Recognize that some fill a personal need through

their food choices.

  • Unequivocally support those who try to meet these

needs…we might be them one day.

  • Continue to support consumer sovereignty while

educating on the facts.

  • Distinguish between ethics, nutrition, and safety.
slide-27
SLIDE 27

What does this mean for you?

  • 1. Recognize the value of segmented commodity

channels:

1. Young & Beginning Farmers 2. Urban/Suburban Sprawl 3. Keeping ‘alternative ag’ in the fold.

  • 2. Let’s happily give consumers what they want:

1. Organic 2. Non-GMO 3. Free-range 4. Happy Cows

  • 3. While explaining the trade-offs involved…
slide-28
SLIDE 28

What does this mean for you?

  • 4. Constantly evaluate opportunities for *your*

farm:

1. Do you like people? 2. Do you have more labor than capital?

  • 5. Make the choice which market to serve based on

*business* conditions.

1. And encourage others to do the same.

  • 6. We are in a new era of agricultural production:

1. Organic 2. Non-GMO 3. Beef for Chinese Market

  • 4. 😊 ‘Medical’ 😊 marijuana
slide-29
SLIDE 29

Questions?

Matthew C. Roberts, PhD | www.kernmantlegroup.com | @YourEconProf

slide-30
SLIDE 30

The children now love luxury; they show disrespect for elders and love chatter in place of exercise. Children are tyrants, not servants of the households. They no longer rise when their elders enter the room. They contradict their parents, chatter before company, gobble up dainties at the table, cross their legs, and tyrannize over their teachers.

  • -Aristophanes

(but often incorrectly attributed to Socrates)