Consumer Opinion and its Influence on Monsanto and Arla Decisions

Last week Monsanto announced that it is stopping efforts to persuade the EU to allow Genetically Modified crops to be grown in Europe. And Arla announced that it is introducing its own farm assurance scheme because, they say, the Red Tractor no longer satisfies the needs of retailers or consumers. Both stories illustrate the importance of understanding consumers, and the impact they have on the business climate in which farming operates.

In the case of GM crops, those who supported their introduction failed to realise that there was no compelling reason for consumers to embrace the technology. GM was not going to make food cheaper, or more nutritious, health giving or delicious. This lack of a clear benefit means that whilst 13% of the population are strongly opposed to GM, and 3% strongly in favour, over 50% do not have a view either way, a figure that has remained the same for the last 10 years. (Source: IGD research). And such is the lack of interest or concern that, according to Food Standards Agency research undertaken last year, 76% of the population have never sought information on the topic, and 63% have never talked about it with anybody.

Add to this inertia the vocal lobbying done by anti GM campaigners, and the lurid stories put out by the tabloid press (example - the Daily Mail’s headline following Monsanto’s announcement was “Frankenstein food firm quits Europe”) then it is unsurprising that Monsanto felt it sensible to put their efforts elsewhere.

In the case of the Red Tractor, those in charge have failed to recognise that a growing number of consumers these days want more than bare minimum standards, particularly when it comes to animal health and welfare.

Whilst just 16% of people put animal welfare as a key driver of their food buying behaviour compared with 74% for price and value and 76% freshness and quality, almost 80% state that animal welfare matters to them. These numbers are sufficiently sizeable for retailers to take note and act. (Source: Labelling Matters Project by RSPCA, Soil Association, WorldSociety for the Protection of Animals, Compassion in World Farming).

The Red Tractor people are now starting to rethink their approach, and now seem prepared to move forward. Commenting on the Arla announcement the Red Tractor response was to say that they would work with Arla to ensure that the scheme meets the needs of buyers, consumers and farmers.

Farming faces a number of major issues as it strives to balance food production and environmental management, whilst remaining competitive in a global fight. Consumers will have a view on all of them, from TB management to large scale pig and dairy farms, crops for biofuels to animal cloning.

Farming leaders need to ensure that consumer opinion forms the backcloth to deciding the issues upon which the industry feels it must stand its ground.

Countryfile, Cows and Bluetongue - Its What Consumers Think that Counts

BBC’s Countryfile programmes shown on the last two Sundays should be leaving livestock farmers with a deep sense of unease about farming’s reputation with the general public.

The programme about Holstein cows gave statistics that up to 40% of cows are lame and a big proportion suffer from mastitis, and said that these numbers are among the highest in the world. It also claimed, erroneously as it happens, that most cows never see a blade of grass in their lives. Although the indoor cows shown were clearly in good health, the average viewer would have taken away a message that dairy cow welfare standards are low. Those moving on to the RSPCA website were presented with the thought that inbreeding in Holsteins is worse than pedigree dogs, a topic which has commanded bad headlines of late. All in all, between Countryfile and the RSPCA there was enough to make consumers question, at least fleetingly, whether British dairy farmers deserve unqualified admiration.

The programme about bluetongue was a far less overt attack on farming standards. There were no words criticising a decision not to vaccinate. But by showing graphic footage of very sick animals with bluetongue in conjunction with an explanation that the costs were too high for most farmers, the implied message was clear – most English and Welsh farmers are too penny pinching to vaccinate and ensure their animals do not suffer.

Why the unease. Well, part of it is a personal belief on the part of many farmers that animal welfare practices should be exemplary.

Regardless of personal concerns, programmes about cows in pain from lameness or mastitis, and pictures of shaking sheep too ill to lift their heads because they are not vaccinated will shock consumers. They reinforce old stereotypes about uncaring farmers just at a time when the general public had come to view British farming in a much better light - to the extent that the big supermarkets are having to procure more and more British produce, because that’s what their shoppers want, and big companies like Dairy Crest are using Johnny Rotten to advertise that their Countrylife butter is British, upsetting the Kiwis in the process.

Its not just about reputation. Economics come into it too. If the public feels no empathy with British farming then the retailers are off the hook, and can buy wherever they want, probably cheaper. And farmgate prices drop further.

It’s ironic that the Countryfile/ RSPCA onslaught has come at a time when many dairy farmers are thinking of leaving the industry, with the result that milk may need to be imported. Not much of a threat if the public feels that British farmers have no better standards than the rest, and so won’t care where their daily pinta comes from.

Whilst the dairy industry went into defence overdrive regarding dairy cow welfare, academic and practical literature on the subjects reveal the sad facts that mastitis rates regularly reach 30% and often much higher, and lameness hovers around the 30% level.These figures might be better than they were but they are still grim. So far the broader press have not picked up either the dairy or the bluetongue issues, but it is only a matter of time. Indeed Hugh Fearnley Whittingstall is rumoured to be preparing a programmme on dairy cattle.

At the end of the day, the farming industry has to realise that an increased interest by consumers in where their food comes from comes with increased demand for the highest standards. Couple this with a vocal media, and access to detailed information about everything via the internet, and there is no place to hide sub standard performance.