EDITORIAL - When Consumers Demand Proof

Ag.Com illuminates the Consumer's Need for Proof

Salvage Groceries is a Trend in Some Urban Environments

The AG.Com article by Laura Rance takes a look at trends and trust in the retail food business. It is worth the time to read. 

In this day and age of fake news and internet prevarication, trust has taken a nosedive. 

Earlier this year, InfoStream published an article entitled, 'With Growing Distrust Across Sectors, is Trust in Crisis?'. Quoting studies by Edelman and Gallup, this article shows that trust has fallen in general and with brands in particular.

Is it any wonder that, as Rance suggests in her article 'the rapidly changing retail food sector (consumer) wants to know what you do on your farm'. She quotes Jay Watson, of General Mills: 

“It’s not about science, it’s about values,” he said. “Facts don’t persuade people, people persuade people.”

According to industry sources, the retail food industry in Canada is worth C$118B annually. According to John Scott, Board Chair of the Canadian Agri Policy Institute (CAPI). Eighty percent of the food sold in Canada is through five companies and so-called “food discounters” such as Walmart and NoFrills, currently sell 53 per cent of the groceries purchased in Canada. 

“Retailers are trying to make sure that whatever products are in their stores can be traced all the way back,” said Scott recently. 

As in most value chains, the connections aren't obvious to the consumer. Moreover, most traceback strategies seem more about mitigating risk for the industry than developing consumer trust. Advertising that features the primary producer is already being used by the fast food industry and by food retailers in some countries. But is this attempt to improve trust really the answer that will satisfy consumers?

The essential question is framed in these terms:

"how can the primary and secondary producers of agrifood prove to a skeptical public, they are using sustainable, consumer approved, trustworthy practices in production and how can they gain/retain the trust of those who buy food"?

Recently, we reviewed the white paper on AgriFood and Agriculture prepared for the Blockchain Research Institute by researchers at York University. It seems certain that emerging technologies like blockchain will have a role in making the production system more transparent for everyone in the value chain including the consumer. However, most of the current proof of concept (POC) activity is not targeted toward North American production. 

Furthermore, at least in Canada, the AgriFood industry continues to think and speak in 'value chain' terms when 'ecosystems' are a better/best way forward. It is telling that a literature search for consumer involvement in the agrifood system is limited to historical surveys and panels. In fact, the competitive nature of value chain thinking has created many paths from producer to consumer and further fragmented attempts to shore up trust or understand the consumer experience in real time.

The evolving understanding of 'ecosystem' is an important story for InfoStream. Where once the term 'ecosystem' was used to describe a biological system and the elements required to sustain it, the term now has a broad context when used in commerce. InfoStream understands 'ecosystem' as 'interconnected elements held together by interactions that create a community of the whole'. Ecosystems will almost always include competitors who learn to become collaborators. Ecosystems trump traditional value chains because of their primary focus on consumer satisfaction and consumer experience.

Many of the recent acquisitions (search 'Acquire') stories published by InfoStream show the purchase of emerging innovators or existing ecosystems by large retailers and service providers. Further evidence of a movement toward achieving the trust and satisfaction of the consumer.

Questions that need answers:

• Can the Agrifood Supercluster project stimulate the development of an Agrifood ecosystem in Canada?
• If 'people persuade people', how is agrifood going to attract and retain these influencers instead of the 'blast and cast' facts approach now present?
• What are the elements that will drive 'proof of concept' activities to overlay agrifood with a blockchain?

About Executive Producer, Larry R. Evans:
Larry Evans is an experienced innovator and strategist. He is Principal of The Paradigm Corporation, which is headquartered at Thunder Ridge just outside Crossfield, Alberta, Canada. He is known for bringing a unique and predictive lens to paradigm shifts during a career that spans 45 years. Now often from his wheel chair, he brings a grounded, tenacious view of brand, ecosystems and trusted relationships for the digital age. His perspective and values influence his life, business and ministry.

https://www.linkedin.com/in/larryrevans