the 2003 national conference for agribusiness serving commercial producers: meeting needs, adding...
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The 2003 National Conference for Agribusiness
Serving Commercial Producers: Meeting Needs, Adding Value
Center for Food and Agricultural Business
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Successful agribusinesses recognize the importance of thoroughly understanding
their customer’s business
Staying ahead of an industry that is evolving at a breakneck pace
is no easy task
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
As the agricultural production landscape changes, so do the needs of the commercial producers
in that landscape.
Anticipating the needs of today’s and tomorrow’s producer
can position your firm to be thethe producer’s partners of choice.
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
The Commercial Producer SurveyIn January, Purdue University and its partners
began a project to:• Provide a comprehensive profile
of commercial farming operations • To better understand
the decision-making processes of commercial producers
• To assess what the findings imply for the marketing strategies
of input suppliers• Compare the results to the ’93 and ’98
Commercial Producer Survey
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
The Conference
Results from the 2003 Commercial Producer Survey
are the driver of this conference’s themes:
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Conference Themes
Reconfiguring the Value BundleChristine Wilson and Corinne Alexander
with…• Doug Bowman- Emory University, GA• Chip Donahue – Brandt Consolidated, IL
Focus …Product, service, and information
in the value bundle and the implications for market segmentation, targeted
marketing and branding
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Serving the Next LevelMichael Boehlje with…
• Ken Doyle, Farmer, IL• Scott Fullen, Farmer, TN• Ben Riensche, Farmer, IA
FocusMeeting the needs of the large producer
Conference Themes
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Serving Multiple Market SegmentsJoan Fulton and Scott Downey
with …• Andrew Miller, Weaver Popcorn, IN• Jeff Simmons, Elanco, IN• Tim Kavanaugh, Federated Coops, MN
Focus …Serving the midsize, commercial, and large
producer at the same time
Conference Themes
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Selling Key AccountsDave Downey with …
• Rodney Green, Ravensdown Fertiliser, Christchurch, NZ
Focus …Positioning our sales force to deliver value and create a relationship
with key commercial producers
Conference Themes
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Keynote Speakers
– Steve Bishop, Procter and Gamble
Growing Profits in “Mature” Markets: Lessons from Procter and Gamble
– Doug Devries, John Deere
Adding Value for Commercial Producers: A Vision for the Future
Conference Themes
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
The 2003 Commercial Producer Survey
The Changing Characteristics of Commercial Producers
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
• Agrium Incorporated
• Dow AgroSciences
• Farm Journal
• Monsanto Company
• Pioneer Hi-Bred
Consortium Members
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
• 14,301 Questionnaires ……mailed January 2003
• Names from Farm Journal• Producers in states accounting for 75%
of production (by enterprise)– Corn/Soybeans, Wheat/Barley/Canola, and Cotton– Dairy, Swine, Beef– Fruits/Nuts/Vegetables/Vines
Study Design
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Study Design• Targeted producers
with greater than $100,000 in sales in at least one enterprise
• Special focus on producers with greater than $500,000 in sales
in at least one enterprise
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Number of Respondents by Primary Operation
Primary Operation Mid-Size Commercial
Corn/soybeans 443 356
Wheat/barley/canola 113 41
Cotton 133 129
Dairy 106 266
Swine 76 191
Beef 192 150
TOTAL 1063 1133
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Commercial Corn/Soybean Producers
6%
11%
13%8%
5%12%13%
Total: 356Other States: 11%
9%
5%
4%
4%
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Commercial Wheat/Barley/Canola Producers
7%
18%
7%
7%
32% 23%
Total: 41Other States: 2%
2%
2%
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Commercial Cotton Producers
63% 3%14%
6%6%
6%
Total: 129Other States: 2%
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Commercial Dairy Producers
8%
21%
8%4%
4%
4%
11%
Total: 266Other States: 9%
20%
3%
2%
2%
4%
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Commercial Pork Producers
6%15%
23%5%
6%6%
17%
Total: 191Other States: 9%
5%
4%
4%
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Commercial Beef Producers
19%
4%
7%7%
19%
10%
7%
Total: 103Other States: 5%
7%
2%
4%
1%
2%
2%
4%
1%
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Fruit, Nut, Vine and Vegetable Growers
15%
5%
37% 5%
8%
Total: 169Other States: 8%
8%
5%4%
1% 1%
2%
1%
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
The Commercial Producer StudyAllan Gray
Focus …Who are the producers
and what are their plans?
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Defining Enterprise Sizes
• Respondents defined as “Mid-Size” or “Commercial” based on calculated revenues– Mid-Size
• Sales in one enterprise of $100K-$499K– Commercial
• Sales in one enterprise of $500K plus 1. Commercial-T (“Typical” commercial producer)
– Majority of the Commercial segment2. Large
– Top 15% of respondents in Commercial enterprise segment
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Physical Units Defining Mid-Size, Commercial, and Large Crop Enterprises
Farm Type Mid-Size Commercial Large
Corn/soybeans (acres)
300-1499 1500+ 4600+
Wheat/barley/canola(acres)
700-3499 3500+ 9000+
Cotton (acres)
200-1099 1100+ 3000+
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Physical Units Defining Mid-Size, Commercial, and Large Livestock Enterprises
Farm Type Mid-Size Commercial Large
Dairy (cows milked/day)
40-199 200+ 1600+
Finished Hogs(head marketed/year)
800-3999 4000+ 25000+
Feeder Pigs (head marketed/year)
3300-16499 16500+ 100000+
Finished Cattle(head marketed/year)
150-799 800+ 3000+
Feeder/Stocker Cattle(head marketed/year)
250-1249 1250+ 20000+
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Average Size of Crop Operations
Mid-Size Commercial-T Large
Corn/soybeans (acres) 771 2,378 8,270
Wheat/barley (acres) 1,624 5,535 12,250
Cotton (acres) 606 1,641 4,650
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Average Size of Livestock Operations
Mid-Size Commercial-T Large
Dairy (head) 94 721 3,007
Hogs (head) 3,206 13,734 55,940
Cattle (head) 594 2,583 31,174
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Characteristics
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Participant Demographics I
• 97% of Commercial respondents are male
• 90% of Commercial respondents are the primary decision-maker
• 32% of Commercial respondents are college graduates
– 29% of Commercial respondents are high school graduatesSource: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Participant Demographics II
• 33% of Commercial respondents are in 45-54 year age group
– 33% under 44 years of age– 14% under 35 years of age
• Cotton and wheat/barley producers fewer Under 35
• Swine and corn/soybean producers younger, more in Under 35
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
15%
37%
27%
10%
15%
20%19%
12%
32%
14%
22%
14%
21%
29%
14%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Under 35 35-44 45-54 55-64 65 plus
% o
f re
spon
den
ts
LargeCommercial-TMidsize
Respondent’s Age by Size
Significantly different at p<.05
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Farm Operation
General Attitudes
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
General Attitude Questions
• I consider myself successful• I am very confident in my own ability• Farming is one of the best jobs on
earth• Other producers often ask my opinion
about new products• I am achieving most of my goals• I am very optimistic about the future
of farmingSource: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
1% 2%
44%
1%
11%
1% 2%
15%
41%
12%
49%
39%
1%
46%
36%
1%5%
19%
49%
27%
0%
10%
20%
30%
40%
50%
60%
70%
1: Stronglydisagree
2 3: Neither
agree nordisagree
4 5: Strongly
agree
% o
f re
spon
den
ts
Under 3535-4445.6465+
Average: (Under 35: 4.24); (35-44: 4.24); (45-64: 4.14); (65+: 3.97)
I am very confident in my own ability by Age
Significantly different at p<.05Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
17%
10%
38%
28%
14%
4%
12%
30%33%
20%
6%
10%
21%
31%
27%
10% 11%
32%
27%
19%
0%
10%
20%
30%
40%
50%
60%
70%
1: Stronglydisagree
2 3: Neither
agree nordisagree
4 5: Strongly
agree
% o
f re
spon
den
ts
Under 3535-4445-6465+
Average: (Under 35: 3.51); (35-44: 3.21); (45-64: 3.06); (65+: 3.34)
I am very optimistic about the future of farming by Age
Significantly different at p<.05Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
General Attitudes
• Producers tend to be confident and feel that they are successful– High growth and Under 35 producers are more
confident, feel that they are successful, and see themselves as opinion leaders
• Commercial producers are somewhat optimistic about the future of farming
• Compared to 1993 and 1998, participants were more confident but less optimistic about the overall future of farming
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Management Challenges by Primary Operation (Commercial Only)
• Profitability– 53% of cotton growers vs. only 32% of dairy
producers
• Environment– 35% of dairy producers vs. 6% of cotton
producers
• Marketing– 14% of cattle producers vs. 1% of dairy
producers
• Expansion– 15% of corn/bean growers
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Growth
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Growth Plans
• Understanding producers growth plans is critical in understanding the changing needs of producers
• The survey asks producers about the growth plans over the next 5
years• We compare this to 1998 and 1993 to
get a sense of how growth is changing in each enterpriseSource: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value”
Center for Food and Agricultural Business
Growth of Operation
• Commercial corn/soybean producers anticipate strong growth
• Commercial wheat/barley/canola producers anticipate the least growth
• Commercial dairy producers anticipate the highest growth
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Expected Growth in Next 5 Years for Crop Producers**
28%
13%
17%
31%
6%
22%
35%
16%
15%
0% 20% 40% 60% 80%
Corn/ soybeans
Wheat/ barley/ canola
Cotton
Average % growth expected
LargeCommercial-T
Midsize** Does not include those exiting farming
* Significantly different at p<.05 Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value”
Center for Food and Agricultural Business
Expected Growth in Next 5 Years for Livestock Producers**
41%
19%
10%
36%
15%
45%
1%
34%
18%
0% 10% 20% 30% 40% 50%
Dairy *
FN Hogs
FN Cattle
Average % growth expected
LargeCommercial-T
Midsize** Does not include those exiting farming
* Significantly different at p<.05 Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value”
Center for Food and Agricultural Business
Growth Predictions by Year
19%
15%
19%
19%
27%
15%
13%
22%
30%
7%
18%
25%
0% 10% 20% 30% 40%
Corn/ soybeans *
Wheat/ barley/ canola
Cotton
CROPS OVERALL
Average % growth expected in next 5 years
1993
1998
2003
* Significantly different at p<.05
NOTE: These do not include anyone who indicated they would not be farming in 5 years AND takes out all outliers with >300% growth predicted
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Growth Predictions by Year for Commercial Livestock Producers
31%
51%
41%
38%
49%
29%
27%
38%
36%
18%
31%
26%
0% 10% 20% 30% 40% 50% 60%
Dairy *
Hogs *
Cattle
LIVESTOCKOVERALL *
Average % growth expected in next 5 years
1993
1998
2003
* Significantly different at p<.05
NOTE: These do not include anyone who indicated they would not be farming in 5 years AND takes out all outliers with >300% growth predicted
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
High Growth Producers
We took a look at the top 20% of growth in each enterprise to provide a quick view of the characteristics of high growth operators and here are some of the highlights:
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
High Growth in Each Commercial Segment (Top 20%)
• Most 44 and under• Most concerned about expansion and
management challenges• Most confident and optimistic
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
High Growth in Each Commercial Segment (Top 20%)
• Higher reliance on local sources for information
• More direct relationship with both Capital and Expendable suppliers
• More reliance on sales/tech reps for information than before
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Farm Operation
Value-Enhanced/Contract Production
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Value-Enhanced Production
What percentage of your gross farm sales in 2002 (and 2008) to come from value-enhanced crops and/or livestock such as organic beef, tofu soybeans, etc.?
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
2% 4%4%
14%
76%
6%5%10%
33%
46%
0%
25%
50%
75%
100%
None 1-25% 26-50% 51-75% 75+%
Value-enhanced crops as % of sales
% o
f cro
p r
esp
on
den
ts
20032008
Gross Farm Sales from Value-Enhanced Crops for Commercial Producers
Significantly different between Commercial and Mid-Size in 2003 at p<.05
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
2% 2%3%5%
88%
4%3%5%
18%
71%
0%
25%
50%
75%
100%
None 1-25% 26-50% 51-75% 75+%
Value-enhanced livestock as % of sales
% o
f livesto
ck r
esp
on
den
ts
20032008
Gross Farm Sales from Value-Enhanced Livestock for Commercial Producers
Significantly different between Commercial and Mid-Size in 2008 at p<.05
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Value-Enhanced Summary
• Increase in value-enhanced products by Commercial Crop producers
• Large producers have most value-enhanced crops now
• Corn/soybeans most value-enhanced now and in 5 years
• High growth producers expect the most value-enhanced in 5 years
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Contracting
On average, what percentage of your total production is produced under contract in which the buyer/contractor sets guidelines for at least one input such as genetics, pesticides, feed, equipment, etc.?
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
58%
28%
0%2%
9%10%
2%4%
10%
61%
27%
0%
77%
1%
11%
0%
10%
20%
30%
40%
50%
60%
70%
80%
None 1-25% 26-50% 51-75% 76+%
% o
f re
spon
den
ts
Corn/ soybeansWheat/ barleyCotton
Percent currently produced under contract by Primary Operation
Significantly different at p<.05Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
81%
11%
1%
9%10%9%
3%2%5%
41%
9%
31%
75%
2%
11%
0%
10%
20%
30%
40%
50%
60%
70%
80%
None 1-25% 26-50% 51-75% 76+%
% o
f re
spon
den
ts
DairyHogsCattle
Percent currently produced under contract by Primary Operation
Significantly different at p<.05Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
8%
29%
64%
44%
63%
11%
25%21%
36%
0%
10%
20%
30%
40%
50%
60%
70%
80%
1: Stronglydisagree/ 2:
Disagree
3: Neither agreenor disagree
4: Agree/ 5: Strongly agree
% o
f re
spon
den
ts
Corn/ soybeansWheat/ barleyCotton
Average: Corn/ beans: 3.67; Wheat: 3.55; Cotton: 3.22
In the future, more agricultural products will be produced to specification under contracts with buyers by Primary Operation
Significantly different at p<.05Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
11%
31%
75%
52%
58%
7%
19%
8%
40%
0%
10%
20%
30%
40%
50%
60%
70%
80%
1: Stronglydisagree/ 2:
Disagree
3: Neither agreenor disagree
4: Agree/ 5: Strongly agree
% o
f re
spon
den
ts
DairyHogsCattle
Average: Dairy: 3.57; Hogs: 3.88; Cattle: 3.58
In the future, more agricultural products will be produced to specification under contracts with buyers by Primary Operation
Significantly different at p<.05Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
34%31%
36%
25%27%
48%
41%
37%
22%
0%
10%
20%
30%
40%
50%
60%
70%
1: Stronglydisagree/ 2:
Disagree
3: Neither agreenor disagree
4: Agree/ 5: Strongly agree
% o
f re
sp
on
den
ts
Corn/ soybeansWheat/ barleyCotton
Average: Corn/ soybeans: 2.99; Wheat/ barley: 3.32; Cotton: 2.60
In 5 years, I anticipate producing more products under contract by Primary Operation
Significantly different at p<.05Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
24%
43%
33%
21%
34%
45%
27%
38%35%
0%
10%
20%
30%
40%
50%
60%
70%
1: Stronglydisagree/ 2:
Disagree
3: Neither agreenor disagree
4: Agree/ 5: Strongly agree
% o
f re
sp
on
den
ts
DairyHogsCattle
Average: Dairy: 2.63; Hogs: 3.22; Cattle: 2.77
In 5 years, I anticipate producing more products under contract by Primary Operation
Significantly different at p<.05Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Contract Summary
• Younger, Larger, and High Growth producers have the most product under contract and expect to produce more under contract in 5 years
• Cotton producers have the least under contract and do not to expect more to be under contract in 5 years
• Relative to 1998 and 1993 Commercial Crop producers are less enthusiastic about the future of contract production
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
7%
30%
63%
12%
31%
6%
31%
63%
57%
0%
10%
20%
30%
40%
50%
60%
70%
1: Stronglydisagree/ 2:
Disagree
3: Neither agreenor disagree
4: Agree/ 5: Strongly agree
% o
f re
sp
on
den
ts
199319982003
Average:1993: 3.68; 1998: 3.72; 2003: 3.53
In the future, more agricultural products will be produced to specification under contracts with buyers: Commercial Crop Producers by Year
Significantly different at p<.05Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Brand Issues
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
19%16%
38%
43%
50%
34% 33%
26%
41%
0%
10%
20%
30%
40%
50%
60%
70%
1: Stronglydisagree/ 2:
Disagree
3: Neither agreenor disagree
4: Agree/ 5: Strongly agree
% o
f re
spon
den
ts
Corn/ soybeansWheat/ barleyCotton
Average: Corn/ soybeans: 3.24; Wheat/ barley: 3.32; Cotton: 3.60
I consider myself loyal to the brands of expendable items I buy by Primary Operation
Not significantly different at p<.05Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
13%
70%
23%
65%
12%
76%
12%10%
21%
0%
10%
20%
30%
40%
50%
60%
70%
80%
1: Stronglydisagree/ 2:
Disagree
3: Neither agreenor disagree
4: Agree/ 5: Strongly agree
% o
f re
spon
den
ts
Corn/ soybeans
Wheat/ barley
Cotton
Average: Corn/ soybeans: 3.59; Wheat/ barley: 3.73; Cotton: 3.79
I consider myself loyal to the brands of capital items I buy by Primary Operation
Not significantly different at p<.05Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Expendable Brand Loyalty for Commercial Producers
43%
50%
33%
34%
42%
32%
57%
50%
67%
66%
58%
68%
0% 20% 40% 60% 80% 100%
Corn/ soybeans
Wheat/ barley/ canola
Cotton
Dairy
Hogs
Cattle
# of respondents
Brand Loyal
Others
* Not significantly different at p<.05
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Expendable Brand Loyalty Demographic Differences
• No significant differences between Brand Loyal Producers and Others on any
demographic factors:– No difference in age, education, gender, farm
size, farm demographics
• But there were attitudinal differences between brand loyal producers and others.
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
• Less likely to buy lowest price expendables• More likely to want to buy locally• More likely to want to deal with one dealer• More likely to buy from cooperatives• More likely to see significant differences
among suppliers• More likely to agree that they rely more on
sales reps than in the past
Expendable Brand Loyal Commercial Producers:
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Generics
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
22%
38%
21%
33%
40%
47%
6%
60%
34%
0%
10%
20%
30%
40%
50%
60%
70%
1: Stronglydisagree/ 2:
Disagree
3: Neither agreenor disagree
4: Agree/ 5: Strongly agree
% o
f re
spon
den
ts
Corn/ Soybeans
Wheat/ Barley
Cotton
Average: Corn/ Soybeans: 3.28; Wheat: 3.10; Cotton: 3.79
Relative to branded products, my farm will increase its use of generic expendable items over the next five years by Primary Operation
Significantly different at p<.05Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
Generic Products
• 31% Commercial producers will increase the use of generic expendables
– Cotton most agreement – Wheat/barley least agreement
• 34% Commercial producers believe that generics represent a good trade off
• Livestock and FNVV are less likely to increase their use of generics than other
crop producersSource: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business
More to Come…
• More of the key results will be highlighted in each of the conference sessions
• Tomorrow we will explore some of the key attitudes of producers in terms of the Internet, media sources, and
consultants• In December we will release a report
covering the issues in this 2 day conference plus some more details on the survey we can’t cover here.
Source: 2003 National Conference for Agribusiness, “Serving Commercial Producers: Meeting Needs, Adding Value” Center for Food and Agricultural Business