Article of the Day

Why Grass-Fed Beef is on a Roll – Wall Street Journal

Supermarkets Make Stars Out of Weird Apples, Knobbled Carrots and ‘Spuglies’ – Wall Street Journal

____________________

This magical, marvelous food on our plate, this sustenance we absorb, has a story to tell. It has a journey. It leaves a footprint. It leaves a legacy. To eat with reckless abandon, without conscience, without knowledge; folks, this ain’t normal.
~ Joel Salatin, farmer and author of Folks, This Ain’t Normal; You Can Farm

Food as a Lifestyle Purchase

A megatrend I see underlying change in agriculture and the food industry is a switch from food purchases for taste and convenience to a lifestyle item.  This megatrend expresses itself in all kinds of ways, but it presents both challenges and opportunities to agricultural entrepreneurs.  The ugly fruit and vegetable campaign, growth in grass-fed beef, the bigger organic aisle at your grocery store, local food fans.  All these are indications of changes in U.S. food markets that are being driven by our customers.

megatrend-food-as-a-lifestyle-purchase

Case – Whole Foods. Whole Foods Market Inc. is the grocery store chain featuring foods without artificial preservatives, colors, flavors, sweeteners, and hydrogenated fats.  It is the United States’ first certified organic grocer.  It started in 1980 in Austin, Texas and now has more than 400 stores and 90,000 employees. On a trip to Austin last summer, I spent three hours in the first Whole Foods store.  I talked with staff and customers and checked out products and produce.  Austin is certainly not Ames from a cultural perspective, but I came from that tour with an even stronger sense of the underlying shifts in consumer preferences for food. Consumers interest in the health characteristics, production methods, source, and environment impact of what they eat is increasing, and it’s not a fad that will run its course.   You may or may not be a fan of items in the organic aisle, but its become almost 4 percent of U.S. food purchases, approaching a $40 billion market.

fruitsandvegetablesorganicdemand

Case – Sawmill Hollow Family Farms. Sawmill Hollow Family Farms in western Iowa is a great example of a farm-to-table business riding the megatrend wave.  Andrew Pittz pioneered growing aronia berries, a native superfood with polyphonolic compounds, including: antioxidants, anthocyanins, resveratrol, proanthocyanins, now considered to be one of the most nutritionally dense fruits on the planet. He evangelized the products made from aronia berries, and has forged a place in the market for a growing array of superfood products.  From an entrepreneurial perspective, consider the boxes he’s checked in developing his business.  Crop/product with an intriguing story – check.  Product traceable to farm – check. Product with unique and marketable nutrition and health traits – check.

Case – Blue Apron.  Blue Apron is a meal kit business founded in 2012 that now delivers more than 5 million meals monthly.  Blue Apron’s approach, the meal kit, offers the convenience of delivery while keeping home cooks in the kitchen. The precisely portioned dinners minimize waste and allow consumers to try ingredients they might not otherwise buy, at a price they’d have trouble matching–roughly $10 per meal per person.  And many of the ingredients are sourced directly from farms.  Is this sort of service just for people in cities?  I heard about Blue Apron from a student who’s parents live in rural Iowa.  Both are busy so they enjoyed the convenience, the quality of the ingredients and meals, and the introduction to new food ideas.

What does food as a lifestyle purchase mean for opportunities for agricultural entrepreneurs?  That’s difficult to forecast, but it’s safe to say that there has never been a better time for the imagination of entrepreneurs to define the future of food and agriculture.  Emergent sweet spots will continue to emerge for entrepreneurs who can reduce transportation costs, have fewer levels between farm and consumer, and create novel products and experiences.

What opportunities do you find most interesting that may be driven by tomorrow’s food consumers?  How will those opportunities shape agriculture and the food industry?