The agriculture industry must pay attention to the ABCs of the new business world if it hopes to be successful in the future, according to American. futurist Lowell Catlett.
Catlett, who teaches at the University of New Mexico, told the annual meeting of the Crop Protection Institute Sept. 18 that three factors will drive business in coming years:
- Affluence: Baby boomers are better educated than their parents. They earn more money and spend more, although a smaller proportion goes to food.
- Brand names, trademarks and reputation: In a world where 15 new products are brought to market every second, it’s hard for consumers to make decisions. They’ll pick items that add status because of well-cultivated and maintained brands, he said.
- Convenience: Consumers want food fast, said Catlett, pointing to the popularity of convenient but expensive items like bottled water and bagged salads. Up next: pre-cut grapefruit.
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Because people are living longer and healthier, they want different things from their food, said Catlett. And they also want a lot of choice. It’s up to agriculture to figure out what consumers want, and to give it to them.
Catlett said he knows a hay producer who is making the most out of these consumer trends.
In 1890, when horses powered the continent, there were 7.1 million horses in the United States, said Catlett.
Today, there are eight million horses, few of which do any work, he said.
The average horse is ridden twice a year and most are kept as pets. To cater to this group of consumers, Catlett’s friend sells hay as a product rather than a commodity. He sells 50 pound bales for $12 (US). Half his customers pay him a premium to stack the hay and break it into daily rations.
“They’re so damn lazy they won’t break the twine,” he said.
Pet owners make emotional decisions about their animals, said Catlett. And emotional buying decisions can usually command more money.
A recent survey showed 83 percent of North American pet owners would risk or lay down their lives for their pets, he said.
“My late father would have said, ‘Get the .22.’ ” he quipped.
Pet-friendly workplaces are all the rage for the younger generation, said Catlett, and pet insurance is one of the top 10 requested perks in the United States.
“Differentiate, differentiate, differentiate,” was the mantra he preached to input dealers at the conference.
As income rises, birth rates fall, noted Catlett. That’s why he believes the world’s population will reach its peak by 2050, then start to fall.
“We’re not running out of resources,” said Catlett. “We’ve got to wisely use them, but we’re not running out.”
