Speed of Execution
Dr. Chris Peterson
Nowlin Chair of Consumer-Responsive Agriculture
Michigan State University
Agri-Food System Change
Mergers and acquisitions among the
large
 Consolidation among the small
 Tighter vertical coordination up and
down the supply chain
 Open market volatility
 Every shorting product and operational
cycle times

– Connectivity and Technology!
Nowlin Chair of Consumer-Responsive Agriculture  Michigan State University
The Customer Challenge

Three Mega-Trends of our consumer
society (Paul Marsden, Admap)
– Offer me integrity, not hype.
– Simplify my life, don’t overload me.
– Give me quality time, help me live faster.
 “.
. . marketers fast-cycle from
conceptualization through
commercialization to oblivion.”
Nowlin Chair of Consumer-Responsive Agriculture  Michigan State University
Food System 1:
Playground of Giants

A few monolithic supply chains
(captained by retailers) dominate a
world in which brands assure attributes,
technology is constrained, consumers
want low budget impact, and global
demand & openness are limited.

Key: BE BIG OR BE HIRED HELP.
Nowlin Chair of Consumer-Responsive Agriculture  Michigan State University
Food System 2:
Speedway to Niches

Individual consumers (willing to pay for
diverse product attribute) access instant
response from virtual webs of microfirms assuring attributes through ecertification within a global context of
open expansive markets.

Key: BE FAST OR BE GONE.
Nowlin Chair of Consumer-Responsive Agriculture  Michigan State University
Food System 3:
Arena of Extremes

A bi-modal system of very big or very
fast chains/webs/firms evolves.
Commodities flow from the big while
products flow from the fast. Consumers
pick and choose in world of uneven
global growth & openness.

Key: NEVER BE IN THE MIDDLE.
Nowlin Chair of Consumer-Responsive Agriculture  Michigan State University
The Resources of Value

Future success in the global food and
fiber system will demand one or more of
the following:
– LARGE SCALE OF OPERATION
–SPEED OF RESPONSIVENESS
– GREATER INVESTMENT IN
“INTANGIBLES”
Nowlin Chair of Consumer-Responsive Agriculture  Michigan State University
The Cooperative Challenge

Speed of execution has not been a
cooperative hallmark capability.
– Decision making is slow and political.
– Investment strategy is overly conservative.
– Redeployment of assets and equity takes
extended periods of time.

How can cooperatives become more
responsive to meet the speed of
business?
Nowlin Chair of Consumer-Responsive Agriculture  Michigan State University