Wealthy Consumers: The Double-Edged Sword of 21 st Century - - PowerPoint PPT Presentation

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Wealthy Consumers: The Double-Edged Sword of 21 st Century - - PowerPoint PPT Presentation

Sep 11, 2023 258 likes •624 views

Wealthy Consumers: The Double-Edged Sword of 21 st Century Agriculture Aligned Ag NorCal Sales Meeting Matthew C. Roberts, PhD | www.kernmantlegroup.com 7 November 2017 Stephen Colberts Tips on Being an Expert (Wired Magazine, August 2006)

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Wealthy Consumers: The Double-Edged Sword

  • f 21st Century Agriculture

Aligned Ag NorCal Sales Meeting

Matthew C. Roberts, PhD | www.kernmantlegroup.com 7 November 2017

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2

Stephen Colbert’s Tips on Being an Expert

(Wired Magazine, August 2006)

  • Pick a field that can’t be verified
  • Be sure to use lots of abbreviations

and acronyms

  • Don’t be afraid to make things up
  • Don’t limit yourself to current

knowledge

  • Get an honorary PhD
  • Make a habit of name-dropping
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3

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US Wealth Continues to Rise

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US Wealth Continues to Rise: Disposable Income

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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
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Maslow’s hierarchy of needs:

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Source: http://jaysonlusk.com/blog/2017/10/4/food-values-of-the-rich-and-poor

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Source: http://jaysonlusk.com/blog/2017/10/4/food-values-of-the-rich-and-poor

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Source: http://jaysonlusk.com/blog/2017/10/4/food-values-of-the-rich-and-poor

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Source: http://jaysonlusk.com/blog/2017/10/4/food-values-of-the-rich-and-poor

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Source: http://jaysonlusk.com/blog/2017/10/4/food-values-of-the-rich-and-poor

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Maslow’s hierarchy of needs:

This is where food comes in.

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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

  • rder to give their children a

right to study painting, poetry, music, architecture, statuary, tapestry, and porcelain.

  • -John Adams (1780)
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My father studied politics and war so that I may have liberty to study mathematics and philosophy. I studied mathematics, […] commerce, and agriculture in

  • rder to give my children the

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.

  • -Matt Roberts (2017)
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Belongingness and Esteem:

  • We are more

connected than ever.

  • We are more

alone than ever.

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How do you explain who you are?

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

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When I was a kid, identities were:

  • Church
  • School/town
  • Work
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Where do we find our community?

  • More Americans

bowling than ever.

  • Fewer members
  • f bowling

leagues.

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In 2017?

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Belongingness and Esteem mean radically different things for food.

  • Food is our identity, not

just sustenance.

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But this has happened in many other industries:

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

break away from commoditization.

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The joys of price discrimination…

Price Quantity

One price for all Total Revenue = Price x Quantity

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The joys of price discrimination…

Price Quantity

Beef

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The joys of price discrimination…

Quantity

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

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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.
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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.
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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…
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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
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Questions?

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

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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)