The Rural Voice, 1991-12, Page 34CHANGING CONSUMER TRENDS WILL DICTATE HOW
WE FARM, SD PRODU L WILL HAKE 'O FIND NES
.,
MARKETS AND O,PORT UN ES, R LEAVE FARAH
Amid all the doom and gloom in
the agriculture sector lately, there are
some rays of hope shining through for
Ontario food producers and pro-
cessors, as a recent study on consumer
trends by the Food Development Div-
ision (FDD) of Agriculture Canada
has shown. In a recent edition of their
newsleuer Visions, the FDD, after
examining attitudes and demographic
factors that influence purchase pat-
terns, has detailed five major consum-
er trends we should be anticipating.
In order of preference, consumers
of tomorrow will be demanding fresh-
ness, variety, convenience, nutrition
and safety, and environmental friendli-
ness, and they are willing to spend
more for products that meet these
specific needs.
First of all there's freshness.
Studies by Ag Canada and the Gro-
cery Products Manufacturers of
Canada show that 68 per cent of con-
sumers want food that looks and tastes
fresh, because they equate quality with
freshness. This has led to an increase
in consumption of fruits and vege-
tables, organic produce, bakery pro-
ducts, deli meats and cheeses, and
fresh pastas. This trend has also spur-
red prepared main dishes which arc,
frozen or chilled to preserve fresh-
ness, and inspired the development of
new processing and packaging tech-
nologies such as modified atmosphere
containers. For instance, the Ontario
pork board is examining a process to
vacuum pack pork in carbon dioxide
that extends its freshness by several
weeks.
Many local farmers have benefitted
from the fresh trend as well, because
of the resurgence in the popularity of
direct marketing channels such as
farmers' markets, pick -your -own
farms, and local food "boutiques" run
by farmers to speed up the delivery of
fresh food to the customers.
The second trend is the demand for
variety, which is becoming one of
today's most powerful trends, affec-
ting everyone from the farmer through
to the retailer, to the foodservice
manager. Tired of basic "meat and
potatoes" diets, consumers — part-
ially because of the changing ethnic
mix of Canada — want hundreds of
fruits and vegetables available year
round (broccoli, cauliflower and
peppers) as well as new varieties of
breads, meats, and other formerly
unavailable foods. For example, only
a few years ago, bagels and nacho
chips were unheard of in this part of
Ontario, and now you can buy them
fresh daily at most local stores.
Many area farmers will spot these
new niche markets and grow some of
these once exotic foods locally.
The third trend, convenience, is
the result of Canada's changing dem-
ographic profile which shows higher
levels of education, higher average
incomes, more working women, and
smaller households than ever before,
says FDD. The resulting time pres-
sures have created demands for name -
brand food and beverage products that
are easy to prepare and tailored to
meet the consumer's busy lifestyle.
With microwave ovens in 70 per cent
of households, processing and
retailing opportunities exist for chilled
or frozen microwaveable products, for
precut, cleaned produce, and for new,
take-home, prepared dishes.
The fourth trend, nutrition and
safety, is the result of high consumer
confidence in the Canadian food sys-
tem. But with an aging population,
there is increasing concern about
health, and consumers want to avoid
chemicals, additives, and contam-
inants in food. Ag Canada studies
have shown that 68 per cent of
Canadians are concerned with chem-
ical residues, and 71 per cent are
concerned about the use of herbicides
and pesticides. There is a demand for
products perceived as nutritious, high
in fibre, and low in cholesterol,
calories, fat, and salt.
And lastly, consumers are demand-
ing products that are not highly pro-
cessed or over packaged in order to
reduce waste and environmental de-
gradation. With the food and beverage
processing sector in Canada account-
ing for nearly 60 per cent of all
packaging, or over $3 billion in 1988,
manufacturers are becoming con-
cerned because 45 per cent of Cana-
dians perceive waste from food pack-
aging to be a serious environmental
problem, and almost 60 per cent are
worried about air quality, waste man-
agement, and the depletion of natural
resources:
As well, groups will have different
demands, depending on their age
group. While the "traditionals" or over
50 group generally consume fewer
prepared foods and beverages and
have lots of money, few debts, and
plenty of time for shopping, they will
be receptive to convenient, portion -
packed, prepared produce and meat
cuts backed by a brand name. The
"boomer families" (25-49 years) will
continue to demand healthful, con-
venient products that are easy to pre-
pare, and offer a variety of choices,
while the "after boomers" (under 25
years) who place little value on brands
but like attractive products, could be
sold on distinctive, appealing products
with minimal packaging to reduce
waste and environmental implications.
So there are local opportunities that
entrepreneurial farmers in the area will
be able to take advantage of.
However, they will need retraining
to equip them with new skills in mar-
keting and processing, along with new
capital investment to change them
from being simple suppliers of raw
products — that in some cases are no
longer in demand in a glutted market
— to successful, profitable operations
with the ability to meet the demands
of the new markets.0
By Jim Fitzgerald
30 THE RURAL VOICE