06- March 2021 Newsletter

Consumers are important to farmers…

… because they are more than just the people who purchase your produce.

Consumers are you and me, our daughters, mothers, sisters. They are taxpayers who fund policies that can support farmers through national exchequer schemes or international policies such as the Common Agriculture Policy.

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They are voters, who elect the politicians who not only decide on the funding of those supports, but also set out the regulatory environment for farmers. And they are the public who debates, through traditional and social media, with the support of information of variable quality and objectivity, the environmental and climate related rights and wrongs of various consumption trends, and industrial and farming practices.

So, we all need to understand consumers, and while food processors and marketers have a direct and immediate interest in doing so, I believe farmers need to take much more notice.

Bord Bia Dietary Lifestyles Survey

Last week, Bord Bia published the results of an online survey of 18,000 consumers across 9 markets (Ireland, UK, Germany, Sweden, US, Italy, France, The Netherlands and China) to establish the key influences on their dietary lifestyles and their food purchasing choices.

The study is presented in a very visual, reader-friendly format here and found that five broad themes are underpinning today’s consumer food choices:

  • an increased focus on mental and physical health;
  • a return to basics, cooking from scratch with natural products;
  • the environment, including the carbon footprint of food, the use of plastic, animal welfare and local/provenance considerations;
  • the physical health and immunity boosting needs created by COVID-19;
  • and identity associated with dietary choices.

Health

The value of the health and wellness food and drink market in the 9 countries examined adds up to €354bn, up 4% in the last 5 years. While 8 out of 10 adults believe they are healthy, their satisfaction with their mental health is back 3% since 2018.

Eating more healthily, a greater interest in “functional foods” (see here for FSAI definition) and exercising more are important to consumers, with COVID-19 adding to this a need to boost immunity and concern over mental health. Chinese consumers are especially keen to seek out immune boosting food and drink, added vitamins, minerals and protein.

Fruit and vegetable consumption has also increased, with over 90% consuming them weekly, an increase of around 30% in the last year. Not all consumers associate a plant-based diet with health, with some considering vegan diets as imbalanced, lacking in nutrients and too processed – as well as costly, and often difficult to access. Over 20% of those who stopped following that diet cite poorer health and lower energy.

Poultry meat consumption increased, by 11% in the last year. While red meat consumption is down 9%, mostly in Europe, it remains a staple of evening meals in Ireland and the UK, especially at weekends. The US have seen stable red meat consumption, while China has actually experienced an 11% increase.

Back to basics

45% stated they liked to cook from scratch. Natural, “clean” food and food with short ingredients lists (free from additives and preservatives) are favoured by European consumers (Italians and French in particular). Chinese consumers are also increasingly keen on organic foods, joining some of their European counterparts.

Taste and enjoyment of food are important considerations for most consumers, with vegans the least focused on this.

The environment

65% stated they are making more of an effort to be more aware of the environment.

Environmental and animal welfare considerations are of particular importance for vegetarians and vegans.

Food provenance matters to all types of consumers: locally produced foods is a strong consideration in the food purchasing decision process of the French and Italian.

Consumers are also more mindful of the need to reduce the carbon footprint of their consumption (57%), and their use of plastic (59%).

Crucially for farmers, 27% of consumers across all 9 markets also state they are willing to pay more for food which is sustainably produced.

COVID-19

The pandemic has impacted consumer behaviour the world over, affecting negatively energy and fitness levels, body weight, body image and mental health. It has also encouraged healthy eating to boost the immune system, including through supplementation with vitamins and minerals, especially in the US and some European markets.

In China, 71% of consumers identify healthy eating as a higher priority since the outbreak, against 36% in the US and 34% in Italy.

The link being increasingly made by scientists between the degradation of the environment and climate, and the incidence of pandemics, has also been noted by consumers. 22% of them believe their impact on the environment has improved since the outbreak of COVID-19.

Identity

While strident social media debates may lead to the belief that food tribes are entrenched (hard vegans v. hard carnivores, for example), the reality for the majority of consumers are more complex. Consumers seek to balance the “good” and “bad” in their food choices: 70% of adults do not adhere to any particular diet or food lifestyle, and flexitarianism is by far the strongest trend.

The study presents a detailed analysis of the characteristics of those adhering to the vegan, vegetarian and flexitarian dietary lifestyles. I retain two main points:

Firstly, vegans make food choices for their impact on the environment and animal welfare, and for their compatibility with their beliefs. Vegetarians consider shorter ingredients lists, natural products, but also take important components like sugar or fibre into consideration. Flexitarians choose food which hits key criteria on calories, fats, protein, carbs and are free from additives and preservatives, and value its pleasurability more than vegans or vegetarians. Part of the response is an increase in occasional plant-based product consumption: 85% of those who purchased a “free from” or “alternative” plant-based product state they will buy again.

Secondly, those influential consumer trends seem more prevalent among women and the younger age groups. The situation is evolving, but women remain the primary decision maker for the household’s food purchases, and younger parents will influence their children’s long term food choices.

What message for Irish agriculture?

One important message from the survey is that consumers have become more engaged with the implications of their food choices for their health and that of the planet, even if at times this appears faddish or contradictory. Consumers will choose to buy foods, at least some of the time, which are coherent with their stated values, they will likely be willing to pay more for it, and they will also support certain farm production practices, while rejecting others.

Another message I took from the study is that while anxious to make the right choices, consumers are perplexed by the complexity of the messages: what is sustainably produced food? What is “green”, and how much of the communication is “green washing”? They value “realness” and need to be able to trust in provenance and transparency of production systems that match what they claim.

Finally, the most influential dietary trend is towards flexitarianism: consuming more sustainably produced as well as more palatable food, more fruit and vegetable, and less, but better produced meat.

I believe there are many opportunities for Irish agriculture and farmers in this.

Irish farmers can build on their good track record, and with support can aim for climate neutrality

Irish farmers have form when it comes to their climate and environment engagement:

Over 95% of the milk produced is certified under the Origin Green (OG) Sustainable Assurance Scheme, as is 92% of beef production, with over 212,000 sustainability audits carried out on farms every 18 months.

Since 2014, farmers participating in the OG schemes have reduced their CO2 emission per unit of milk by 9%, and by 5% for beef.

Farmers have voluntarily embraced ASSAP, the Teagasc-run, local authority-supported water quality improvement advisory programme.

They have invested almost €80m with TAMS grant aid in low emission slurry spreading equipment and protected urea sales have more than doubled in 2020 to over 45,000t.

Few farmers have not already adopted at least some of the measures recommended by the Teagasc Marginal Abatement Cost Curves (MACCs) for carbon and ammonia emissions reduction.

With appropriate supports, including through Environmental CAP payments, this generation of farmers have planted 10,000 km of additional hedgerows – of which 1,250 km by OG schemes’ members since 2014.

Farmers understand and generally accept that national and EU policies, including the national Ag Climatise Roadmap and the Climate Action Plan, but also the forthcoming Common Agricultural Policy, influenced by the Farm to Fork and Biodiversity Strategies of the EU Green Deal, will require and support them in further improving the impact of their farming practices.

The soon to be published national Agri Food Strategy 2030, the successor to Food Harvest 2020 and Foodwise 2025, is expected to aim for carbon neutrality for the sector by 2050.

With the right training and support for farmers, fair valuation of the public goods they produce, including carbon sequestration, and a real effort to reap the value of this action to return it to farmers, why not?

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© Catherine Lascurettes, Cúl Dara Consultancy