Why I said what I said about The Year of The Farmer
During discussions at the recent NFF Blueprint for Agriculture forum in Adelaide, some comments that I made were picked up by a journalist in attendance and included in a mainstream publication, as part of a series of feature articles on current issues in the agricultural industry: http://www.indaily.com.au/?iid=62849&sr=0#folio=1
The young journalist did her research and wrote a well-balanced article discussing the pros and cons for how the industry goes about promoting itself. Final copy got chopped to bits by the Editor and made no sense.
Our reputation for food safety and quality is second to none. Consequently, the rest of the world has plans for us. I believe that key markets around the world have a much more advanced understanding of what their supply relationship with Australia will look like in the future, as opposed to our own level of current planning.
Perhaps impatiently, some countries are already making their move on us, to secure direct supply rather than a trade relationship.
With that in mind, here are some of my thoughts. Gulp! Turns out these are the thoughts of quite a few others. Phew!
I suppose that when you are under so much pressure for so long, you tend to move into a bit of an identity crisis.
But why showcase the industry up to the farm gate and then stop? What happens to the food, wool and grapes after the farmer has produced them? So many wonderful value-added products that go all over the world and into Australian homes. Farming's contribution to national GDP is 3%. What happens next adds about another 24% or so. Who are the people doing all this? Now there's a story.
But wait, there's more to the story. That 24% includes all the inputs, technology, research and services that are provided to the farmer before anything has been produced. All things considered 24% GDP from the rest of the industry is most likely into the 30s. Some of the amazing advancements in this side of the industry has kept farming in the game. Let's hear about that.
An idea might have been to spend a year effectively marketing an entire 'agrivision' for Australia. An exciting tale of 'food, fibre and wine - twenty twelve and beyond.' A massive celebration of all that we do and the positive impact it has on billions of lives - every single day. Talk about grabbing the attention of the nation. What a chance for every Australian to puff their chest out. They'll appreciate our industry for sure.
At the moment I'm convinced they're still not sure what it is we do.
I'm thinking that this type of promotion about our industry would have effectively delivered two key messages to those we need to be listening right now. Firstly, educate Australian consumers how their food actually arrives on their plate - not just how it is grown. Help them make the connection. Secondly and most importantly, we show our key trading partners a cohesive, vibrant and dynamic value chain that is excited to know them and open for business.
The more I think about it, the immediate and lasting economic return of this type of marketing is easy to see. Short-term stimulus doesn't cut the mustard on this one.
The young journalist did her research and wrote a well-balanced article discussing the pros and cons for how the industry goes about promoting itself. Final copy got chopped to bits by the Editor and made no sense.
Some background
Australia is one of only 15 countries on the entire planet that are total net exporters of food and fibre products. The majority of all that is produced by our farmers is paid for and consumed by someone overseas; not by someone living here in the suburbs.Our reputation for food safety and quality is second to none. Consequently, the rest of the world has plans for us. I believe that key markets around the world have a much more advanced understanding of what their supply relationship with Australia will look like in the future, as opposed to our own level of current planning.
Perhaps impatiently, some countries are already making their move on us, to secure direct supply rather than a trade relationship.
With that in mind, here are some of my thoughts. Gulp! Turns out these are the thoughts of quite a few others. Phew!
Right message, wrong timing?
Is The Year of The Farmer the right message at the wrong time? If I read between the lines, I think I get what it is trying to do because I live and work in the industry - but the message is not for me. I'm worried that at this critical point of so many contemporary industry challenges, how we are currently describing/promoting our industry may be incomplete and inconsistent. Maybe even a bit nostalgic. Others don't have the benefit of knowing what we may actually mean.I suppose that when you are under so much pressure for so long, you tend to move into a bit of an identity crisis.
But why showcase the industry up to the farm gate and then stop? What happens to the food, wool and grapes after the farmer has produced them? So many wonderful value-added products that go all over the world and into Australian homes. Farming's contribution to national GDP is 3%. What happens next adds about another 24% or so. Who are the people doing all this? Now there's a story.
But wait, there's more to the story. That 24% includes all the inputs, technology, research and services that are provided to the farmer before anything has been produced. All things considered 24% GDP from the rest of the industry is most likely into the 30s. Some of the amazing advancements in this side of the industry has kept farming in the game. Let's hear about that.
An idea might have been to spend a year effectively marketing an entire 'agrivision' for Australia. An exciting tale of 'food, fibre and wine - twenty twelve and beyond.' A massive celebration of all that we do and the positive impact it has on billions of lives - every single day. Talk about grabbing the attention of the nation. What a chance for every Australian to puff their chest out. They'll appreciate our industry for sure.
At the moment I'm convinced they're still not sure what it is we do.
I'm thinking that this type of promotion about our industry would have effectively delivered two key messages to those we need to be listening right now. Firstly, educate Australian consumers how their food actually arrives on their plate - not just how it is grown. Help them make the connection. Secondly and most importantly, we show our key trading partners a cohesive, vibrant and dynamic value chain that is excited to know them and open for business.
The more I think about it, the immediate and lasting economic return of this type of marketing is easy to see. Short-term stimulus doesn't cut the mustard on this one.
Feeling unappreciated?
The farmers I know are a resilient lot. Pretty thick-skinned. They don't like wasting money. Heard that a million times. Worst of all don't let them believe that money is being wasted on them. No time for walking around slapping each other on the back, there are more pressing issues at hand. Are they worried that some people might think they are whingers? Not really. Might dent the pride a little bit. Just for a moment. What are they after? Real economic returns at the farm gate - RIGHT NOW. Time is of the essence. Just get on with business and whoever Australia needs to do that business with, to make it happen.
Catalyst for change
What will success look like in the future? I'm really interested to know how the performance of current marketing efforts will be measured at the end. This no doubt needs to happen given the cost and importance that it brings real-time economic results fairly quickly. We compete with 14 other countries for a share of the export wallet. % share of wallet = Landcruiser or Mahindra. Let's face it - sitting at the dinner table at night we measure the performance of other peoples' buying behaviour for our goods produced, by the impact it has on our own individual purchasing capacity.
The degree of separation that now exists in Australia between farmers and the people that consume their products (locally and overseas) is ridiculous. What happened? Whole-of-industry initiatives are a great way for industry stakeholders that have been polarised to get to know each other. It's very important they do know each other.
My guestimate is that farmers and consumers alike are becoming increasingly frustrated at the degree of separation established by mid-market participants. Funnily enough they are the two most powerful in the whole process.
My tip is that Corporate Cooperatives will feature heavily on the industry landscape in the future. If you have a mid-market business model, I would start thinking about how you are going to adapt. The same warning has gone out in many other industries.
The end
It takes information to change one's situation. My thoughts are just a small contribution to this enormous process we need to have.
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