Tag Archives: current trends

Exploring the business model trends for agri-food

The food we eat is one of the most important aspects of our lives, besides clear water to drink. 

In 2020, there are an increasing number of trents which we see in the agrifood market place which are coming together and making us rethink the consumption model for meat and more importantly the entire diet humans consume on the planet. Let’s highlight a few.

The science behind the types of food we need is changing as we see the standard “post second world war” diet increasingly puts populations into obesity and early death. The understanding of macro and micro nutrients and what a balanced diet is has led to less meat consumption and also the rise of veganism throughout the western world(veganuary). The amount of information (some mis-information) available on good food diets (also sustainable consumption) is rising which allows people to research their own, create personal plans and develop better understandings, leading to a more diverse range of food consumption patterns.

The welfare of animals requirements is growing as consumers demand better, which is driving up costs, the use of antibiotics and larger farms to maintain profitability. Biosecurity is an issue as Swine Flu, Bird Flu, SARs and Covid-19 all shown this global issue is not going away, so further research and understanding to mandate our food security is needed. The processing of meat is a major issue and the WHO has declared processed and cooked meats a carcinogen. 

The relationship between land, its value, productivity and product type is reducing as technology allows these connections to be removed. The cost of labour is increasing, costs of health and safety in the (farm) workplace and the continued mechanisation, automation and ultimately robotization/AI replacement is increasing at a faster and faster pace.

The percentage cost of food per household has over the last 50 years gone down, so consumers are increasingly looking for provenance of their food and understanding the benefits of finding diverse and local sources, through Veg and Meat Box schemes and buying directly. These short supply chains have proved more resilient and sustainable and technologies such as BlockChain, E-payments and direct messaging have proven themselves.

The cost of carbon used in the production of food has come into public sectiny. Many countries require and industries have to account for the complete lifecycle of their products. Therefore within the agri-food sector this would then bring in creation, processing, transport, packaging and waste disposal which would currently make it unsustainable.

The western world subsidises food through (In the UK its currently £3.4bn a year through CAP, which is around £56 per person per year which no other industry sector gets (pre Covid-19)) based on a post second world war model. This is based on the amount of land and food groups, which is a broken link to production already highlighted.

The connection between farms and the environment is currently being explored as the next subside system(post-Brexit). The rural environment has been created by our farming methods and food requirements. These food requirements have changed and are changing fast so will result in changes to the rural landscape. The public’s perception and requirement of the rural landscape is under researched (are they happy with greenhouses the size of a small town or forests surrounding all villages. The options to decrease the environmental impact of the populations activities and their acceptance public debate.

These trends are making the very business model of food development and consumption change very quickly and it’s important we discuss them as a community.

What business should I start?

This is the million dollar question, and so hard to explain to people.

I always talk about passion and how if you have passion then you will be more successful. It’s more than this, if you do not believe in what you are doing and have the ability to drive yourself 12 hours a day to strive for success then success will not be able to find you. Passion for the product, the service and your customers is a real source of energy, drive and determination which is an enormous help.

However some people have a passion for making money, being financial stable and independent. These people would have the passion to sell tea spoons, or sand or just about anything. For these people I tell them:

Its about Basic Needs

Maslow is famous for setting out people’s needs. He stated that people need the following in the following order:

Physiological(food, water, health, sleep), Safety and Security(employment, finances, resources, family, property), Love and Belonging (friendship, family, sexual intimacy), Esteem (confidence, achievement, respect) and Self Actualisation (creativity, problem solving, acceptance of facts).

If you walk down the high street, every shop is based on one of these needs. The most successful ones are those which basic needs, food, water, health. The more basic the need, the greater the market size, the more people wait it and the better chances you have of selling more and being more successful. There are lots of examples: Bottled Water, Coffee Shops, Hotels, Fast Food….

Take a look at you spend and what products you buy, how can you better or improve on the products you buy?

Its about trends

People are living longer. This means there will be larger population, resources will be have to be shared and will cost more (supply and demand). The price of land, minerals, financial resources and even the virtual world will increase. More of these people will be old(er), more will have an illness, more will need help, more will be in the process of dying. There is money to be made out of each and every stage of life.

People have more money. The rich will always be rich and the poor will always be poor. Be definition you cannot have one without the other. Greed drives one to master the other. Those with money will and always have wanted to live in individual place, have different social clubs and have people to help them enjoy and spend their money.

There will always be people moving around the globe, people will move for work, holidays and migration as they have for thousands of years. Every day China and India get richer and this massive population will wait to travel, have the experience of seeing the Pyramids, Eiffel Tower and Sydney Harbour.

The economies of the world will change to develop new sources of energy which ensures the growth. Do you think China and India have done all this hard work only to run out of energy? With new energy sources come new opportunities to manage, measure and profit from it.

The internet will get bigger, faster. Moores law will continue to ensure we can double processing power every 18 months. Applications will be created which will allow the most amazing integrations of library information, personal environmental data and social interaction. Please remember the words of Darth Vader “All your technology is insignificant to the power of the force.” The force being peoples habits. After all we still live in houses created hundreds of years ago.

In short there are so many opportunities that you just need to look for the one that fits your skills, appetite for risk and aptitude.