Food Industry Responses to Consumer
Concerns: Implications for Farmers
Rod Hawkes
Senior Extension Associate
Food Industry Management Program
January 20, 2016
The Food Industry has LOTS of ISSUES!!
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Obesity
• Animal rights
Gluten free
• Human rights
Allergies
• Immigration
Organic/Biodynamic • Fair Trade
GMOs
• Food Deserts
Hormones
• Food Waste
Natural
• Vegetarian/Vegan
Local
• Food safety
Sustainability
• Food security “A”
Labor practices
• Food security “B”
A partial list, in no particular order
Societal Context
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Pervasive Internet and social media usage
Multi-media coverage of food and food industry
Rising awareness of food related issues
Rising concern about food sources & practices
Levels of awareness and concern higher than
level of understanding of issues
• Information and misinformation abound
• Confusion conflates issues for many consumers
Recent Popular Books and Films About Food Industry Issues
Food as Designer Drug?
Source: New York Times Magazine, Feb 24, 2013
Consumers Concerned but Confused
FARM
FRESH
Source: Environmental Working Group, 2015
Food Industry Context
• Most retailers perceive themselves as buying
agents for consumers
• CPG food manufacturers fighting for food dollars
• Shifting consumer eating and shopping habits
• Shifting, intensifying retail competition
• Online shopping rising rapidly from a small base
• Rising expectations: quality, price, convenience
• Supply chain visibility and traceability
• Food safety concerns dominate
Major Environmental Issues and Organizations
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Sustainability
Pesticides, herbicides
Hormones, antibiotics
GMOs
Air quality
Water quality
Fisheries viability
Food Waste
Inputs for Beef (per quarter pound)
Source: http://www.npr.org/sections/thesalt/2012/06/27/155527365/visualizing-a-nation-of-meat-eaters
Seafood Ratings by Environmental Impact of Sourcing
Source: greenpeace.org/usa/
Seafood Ratings by Health Impact of Species
Wegmans Organic Seafood
Source: Wall Street Journal, December 9, 2015
What’s better? Organic or Non-GMO?
Retailers that will not sell GE Salmon
99%
Non-GMO
VERIFIED
“…It provides a halo for food producers without providing any actual
protection or valuable information to consumers. To this extent, it is
often downright misleading…”
Source: Food-navigator.com
“…grown without pesticides, herbicides, chemical fertilizers, growth
hormones, and above all GMOs.”
“…natural should only refer to the ingredients, not the way the product
is processed….”
“Food made by God is natural. Food made by a chemical company in
the lab is not natural.”
“If the human food product comes in a box or packet and any of the
ingredients have been processed, the term “natural” should never be
allowed.”
Major Human Rights Concerns & Organizations
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Livable wages
Child labor
Slave labor
Working conditions
Immigration reform
Source: foodtank.com
Major Animal Rights Issues & Organizations
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Gestation crates for pigs
Battery cages for chickens
“Factory farms”
Antibiotics
Hormones
Testing
Gestation Crates Ad Campaigns
Gestation Crates Debate
Cage-free Hens and Eggs
Overall Sustainability Impact Ratings
HOW GOOD
How Good’s Product Rating Indicators
Growing
Pesticide Practices
Greenhouse Gas Profile
Fertilizer Practices
Habitat Risk
Grower Type
Site Diversity
Grower Record
Livestock Index
Livestock
Feed Analysis
Fertilizer Practices
Animal Welfare
Antibiotics & Hormones
Pasture Use
Waste Management
Pesticide Practices
Historic Record
Source: howgood.com
Takeaways…
• Awareness and concern are
widespread and growing rapidly
• Understanding lags as confusion
reigns
• Retailers & manufacturers are
changing policies and practices to
avoid controversy
• Growing pressure on farmers and
suppliers to change practices
THANK YOU!!!
Rod Hawkes
Food Industry Management Program
rod.hawkes@cornell.edu