Post on 15-Jul-2015
The Future of Food Testing
Craig Rispin CSP
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In The Last Few Years?
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Lack of understanding of future trends (88%)Little understanding of internal capabilities (87%)Too much top-down approach (84%)Not enough logical thinking (84%)* Findings in A.T. Kearney's 2014 Strategy Study
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As Some Opportunities Sunset...
U.S. Consumer Media Consumption Share
Other Opportunities Emerge...
Market Demand For Safe Food Will Be A Major Driver Of
Corporate Activity In The Near Future
27© The Economist Intelligence Unit Limited 2013
A healthy future for all? Improving food quality for Asia
Demand for safe and nutritious food will spike across Asia-Paci c in the next ve years as purchasing power rises, along with household spending on food. For the region as a whole, The Economist Intelligence Unit pro ects consumer spending on food, beverages and tobacco will rise from US 2.8trn in 2012 to US 3.7trn by 2016. As production and trade of food rises to meet this demand, improving food quality will be a pervasive challenge for producers and governments alike.
hat a o er e t o? One issue that will be dif cult to manage is the increasing complexity of the regional food supply chain, and the growing number of suppliers within
it. Not only is it a ma or cause of concern for food safety but it also limits the ability of governments to trace the source of crises when they occur.
A uni ed code of standards would seem to be one way to help alleviate problems, but this looks a long way off. At the moment there are differing standards of food safety across production, processing and preparation in nearly all countries, though Australia and New
ealand share a common code. The challenge is to maintain a workable balance of regional co-operation and national autonomy on an issue that is highly politicised for many countries.
There is bene t in having harmonisation. ut
The demand for better food quality is growing. Companies and governments have much work to do to deliver it.
Consumption expenditure in food and private consumption expenditure projected to rise, 2006-16
Source: The Economist Intelligence Unit.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
20162015201420132012201120102009200820072006
(%)(US$) Nominal private consumption expenditure divided by population
Final consumption expenditure by households on foodstuffs, alcoholic and non-alcoholic drinks and tobacco
Figure 11
0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
utloo
Demand For Safe And Nutritious Food Will Rise Dramatically
Across Asia-Pacific In The Next Five Years
9© The Economist Intelligence Unit Limited 2013
A healthy future for all? Improving food quality for Asia
for food safety. In 2011, Taiwan was rocked by the discovery of a carcinogenic plasticiser in food additives that had been widely distributed to food manufacturers across the region. With relatively well-developed regulatory and monitoring systems in place, how can these incidents happen
One of the ma or factors at play is commoditisation within agricultural production and the patterns of global trade that now characterise the modern food industry.
etween 2003 and 2012, the value of exports from Australia to the rest of the world rose by a Compound Annual Growth Rate (CAGR) of 9 , reaching US 26bn in 2012 while the CAGR for global food and livestock exports to China grew by 19 , peaking at US 35.3bn in 2012, according to the United Nations Commodity Trade Statistics Database (UN Comtrade).
Currently, about 16 of the world’s calories cross international borders expect this number to increase as populations and incomes continue to grow in Asia, says Stan Ryan, corporate vice-president at Cargill Agricultural Supply Chain Worldwide. For countries dependent on imported supplies, this share can be a lifeline. China is emerging as a critical supplier of food to apan the value of exports rose from US 5.5bn in 2003 to US 10.8bn in 2012. In the same period, Australia and Vietnam became signi cant exporters to China, with the value of food and livestock trade rising exponentially in the past decade, despite a lull during the global
nancial crisis of 2008-09. The value of imports from Australia rose from US 0.3bn in 2003 to US 2.4bn in 2012. eanwhile, exports of food and livestock from Vietnam to China rose from US 0.1bn in 2003 to US 2bn in 2012.
Whereas community farmers previously took a role in testing produce their livelihoods were dependent on maintaining the trust of local consumers after all today the behaviour of players across various parts of the supply chain is changing. The problem is compounded
Growth in value of food and livestock trade, 2003-12
Source: UN Comtrade. Note: SITC revision 3, Category 0, food and live animals
0
10
20
30
40
50
60
Australia China Indonesia Japan New Zealand India
18.4
10.6
17.5
3.7 1.9
7.55.9
26
32.8
52.1
7.910.7
3.3 3.7
14.4
18.615.9
26.8
(US$ bn) (%)
0
2
4
6
8
10
12
14
16
18Export 2003 Export growthExport 2008Export 2012
0
10
20
30
40
50
60
70
80
Australia China Indonesia Japan New Zealand India
79.9
14.1
3.46
3.1
39.3
1.2 1.3
35.3
7.9
13.3
53.7
64.2
2.6 3.4 3.76.1
(US$ bn) (%)
0
5
10
15
20
25
Import 2003 Import growthImport 2008Import 2012
Figure 1
Food and livestock exports from China to other Asian countries(US$bn)
Note: SITC revision 3, Category 0, food and live animals
Source: UN Comtrade.
0
2
4
6
8
10
12 VietnamSouth Korea JapanIndonesiaAustralia
2012201120102009200820072006200520042003
Figure 2a
Rapidly Growing Cross-border Trade In Food And Livestock Is
Making Monitoring Of Food Quality Difficult
9© The Economist Intelligence Unit Limited 2013
A healthy future for all? Improving food quality for Asia
for food safety. In 2011, Taiwan was rocked by the discovery of a carcinogenic plasticiser in food additives that had been widely distributed to food manufacturers across the region. With relatively well-developed regulatory and monitoring systems in place, how can these incidents happen
One of the ma or factors at play is commoditisation within agricultural production and the patterns of global trade that now characterise the modern food industry.
etween 2003 and 2012, the value of exports from Australia to the rest of the world rose by a Compound Annual Growth Rate (CAGR) of 9 , reaching US 26bn in 2012 while the CAGR for global food and livestock exports to China grew by 19 , peaking at US 35.3bn in 2012, according to the United Nations Commodity Trade Statistics Database (UN Comtrade).
Currently, about 16 of the world’s calories cross international borders expect this number to increase as populations and incomes continue to grow in Asia, says Stan Ryan, corporate vice-president at Cargill Agricultural Supply Chain Worldwide. For countries dependent on imported supplies, this share can be a lifeline. China is emerging as a critical supplier of food to apan the value of exports rose from US 5.5bn in 2003 to US 10.8bn in 2012. In the same period, Australia and Vietnam became signi cant exporters to China, with the value of food and livestock trade rising exponentially in the past decade, despite a lull during the global
nancial crisis of 2008-09. The value of imports from Australia rose from US 0.3bn in 2003 to US 2.4bn in 2012. eanwhile, exports of food and livestock from Vietnam to China rose from US 0.1bn in 2003 to US 2bn in 2012.
Whereas community farmers previously took a role in testing produce their livelihoods were dependent on maintaining the trust of local consumers after all today the behaviour of players across various parts of the supply chain is changing. The problem is compounded
Growth in value of food and livestock trade, 2003-12
Source: UN Comtrade. Note: SITC revision 3, Category 0, food and live animals
0
10
20
30
40
50
60
Australia China Indonesia Japan New Zealand India
18.4
10.6
17.5
3.7 1.9
7.55.9
26
32.8
52.1
7.910.7
3.3 3.7
14.4
18.615.9
26.8
(US$ bn) (%)
0
2
4
6
8
10
12
14
16
18Export 2003 Export growthExport 2008Export 2012
0
10
20
30
40
50
60
70
80
Australia China Indonesia Japan New Zealand India
79.9
14.1
3.46
3.1
39.3
1.2 1.3
35.3
7.9
13.3
53.7
64.2
2.6 3.4 3.76.1
(US$ bn) (%)
0
5
10
15
20
25
Import 2003 Import growthImport 2008Import 2012
Figure 1
Food and livestock exports from China to other Asian countries(US$bn)
Note: SITC revision 3, Category 0, food and live animals
Source: UN Comtrade.
0
2
4
6
8
10
12 VietnamSouth Korea JapanIndonesiaAustralia
2012201120102009200820072006200520042003
Figure 2a
Global Food Companies Have A Large Role To Play In Improving
Food Safety, Yet In Some Markets They Are Discouraged
From Investing
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sked to rate the value of various marketing activities on a five-point scale, meetings/conferences and research/surveys top the list.
Today B2B providers view a broad array of sponsored programmes, such as conferences and white papers, as a valuable means of capturing attention and persuading decision makers.
This is not to say that traditional advertising has lost its appeal. Instead, the conclusion is that organisations seeking to promote their businesses are increasingly relying on a range of channels, including print.
Specifically, these cross-channel programmes
user communities) and passive (print) promotional channels.
The way forward is clearly a heavier reliance on creating a programme of thought leadership that takes advantage of multiple-entry-point messaging.
The shift to 360º thought leadership
1. How important are the following non-traditional categories of marketing activity to your organisation? (Mean score out of 5)
Meetings/conferences
Research/surveys
White papers, executive summaries, articles3.76
3.85
3.61
1M E G A T R E N D O N E
A
Thought Leadership Defined
The term was first coined in 1994, by Joel Kurtzman, editor-in-chief of the magazine, Strategy+Business
“Thought leaders are individuals or organisations that are recognised by peers, customers and industry experts as someone who deeply understand the business they are in, the needs of their customers, and the broader marketplace in which they operate.”
“Thought leaders have a distinctively original idea, a unique point of view or an insight.”
Thought Leadership Marketing –Tops for Marketers & Buyers
� 9'of'the'top'11'effective'ways'of'getting'a'����������� ������� of'involve'Thought'Leadership'Marketing
How would you rate the effectiveness of the following marketing vehicles in getting your attention? Mean Rating (N~344)
Speech or presentation at a conference or trade showCase studies describing successful customer solution implementations
Article in the business or trade pressInvitation to a Webinar, seminar, or workshop
Sporting or cultural event sponsorshipOnline advertisement
Vendor's blogTV or print advertisement
Phone call from a sales representative from the service firmEmail from a sales representative from the service firm
Direct mail brochureConference sponsorship
Electronic newsletter from the service firmWhite paper offered on the Internet
Search engine hits when doing research or surfing the WebAnalyst firm recommendation (such as Gartner/IDC/Forrester)
Speech or presentation at a conference or trade showCase studies describing successful customer solution implementations
Article in the business or trade pressInvitation to a Webinar, seminar, or workshop
Sporting or cultural event sponsorshipOnline advertisement
Vendor's blogTV or print advertisement
Phone call from a sales representative from the service firmEmail from a sales representative from the service firm
Direct mail brochureConference sponsorship
Electronic newsletter from the service firmWhite paper offered on the Internet
Search engine hits when doing research or surfing the WebAnalyst firm recommendation (such as Gartner/IDC/Forrester)
2.02.22.32.32.32.3
2.52.82.9
3.13.23.33.43.4
3.73.7
Source: ITSMA, How Customers Choose Study, North America, 2007
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