Saskatchewan food processors need to form alliances to sell their
products to the world, says grocer Harry Watson of Moose Jaw, Sask.
He suggested that networks between businesses could see Saskatchewan
berries added to locally processed yogurt, and Saskatchewan chicken
processors buying local birds and selling the byproducts to pork
producers for feed.
“It should work in a circle with everyone supporting one another,” said
Watson, at the Saskatchewan Food Processors conference in Saskatoon
April 11.
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Watson, the president of Triple 4 Advertising Inc. and chair of Grocery
Showcase West, also sits on the board of the Canadian Federation of
Independent Grocers.
He said forming strategic alliances can get consistent costs for
members for banking fees and utilities. Such group savings can help
processors better compete in the larger marketplace.
“Getting rid of the Crow was a blessing. It forced us to rethink what
we did in the past,” he said, noting Saskatchewan now needs to add
extra value to produce more profit.
“Don’t grow durum because your grandpa did.”
Watson advised processors to keep up with new technologies, change with
the times, follow the competition, keep their eyes open for
opportunities and keep infrastructure strong.
Employees are the strongest asset in a company and ambassadors for a
business. Strong returns to business can help employers pay staff what
they are worth and keep them in Saskatchewan communities.
Food safety will become increasingly important due to recent scares
like mad cow disease.
Internet marketing will grow over the next decade, he said in citing
the case of one Saskatchewan snowmobile dealer who does five percent of
his business out of the store and the rest from his website.
“We have to market Saskatchewan to the world. Grow and manufacture what
consumers want and change as consumers change,” he said.
Amanda Bové Sill, a Minnesota food consultant, detailed a daunting list
of forms required for accessing export markets. Prior to entering the
United States, processors should have in place well-defined marketing
and business plans and production capabilities.
To get the volume buyers require, she suggested processors band
together.
“Co-operatives are a great way to be able to combine marketing efforts,
production and lower your overhead, as those costs are shared,” she
said.
Watson and Bové Sill said good, healthy, wholesome food is in demand
all over the world and aging baby boomers are willing to pay for it.
“Your challenge is to produce it and get it to market,” Watson said.
Bové Sill said 56 percent of the population will buy organic because
they believe it is “pure, good and healthy for them.”
She said organics currently account for $8 billion US in sales in the
United States, but is expected to rise to $20 billion by 2005.
