How on-farm data and analysis can support credence attributes

Can on-farm technologies and “big data” support food and fibre product attributes that consumers value?

In a previous article I noted a Hartman Group study that suggested that consumers are interested in attributes other than just the look and price of a product, wanting to know:

  • What ingredients are in the food or beverage product (64%);
  • How a company treats animals used in its products (44%); and
  • From where a company sources its ingredients (43%).

We call these informational aspects of a product “credence attributes”, meaning that they give credence to our decision to purchase (or not purchase) a product or service, but can’t be directly assessed from the product itself, either before purchase (on the basis of colour or feel) or after purchase (on the basis of taste, for instance).

Characteristics such as “organic”, “environmentally responsible”, “grass-fed”, and “naturally raised” relate to the story behind a product. A product may communicate these through advertising, packaging, and other ways of telling the product story.

But consumers are also looking for authenticity and integrity in their food and other products. There’s a consumer backlash when the product story on the pack is in conflict with other data sources – such as claims in news articles or secret video footage.

We’ve been exploring ways that feeds of data from on-farm technology could be used to support the product provenance and credence story – or at least signal to farmers and their supply chain partners where checks and improvements should be considered. Here are a couple of examples.

Monitoring carbon footprint

Carbon life-cycle assessments (LCAs) are used to understand the extent to which production, manufacture, and distribution of a product impacts on climate change through deforestation or release of greenhouse gases such as carbon dioxide, methane, and nitrous oxide. We learn some interesting things from these, sometimes showing that shipping food products from the other side of the world can have a lower impact than growing products locally if the local environment is less hospitable.

Importantly, producing a Life-cycle assessment creates a model – a series of equations and if-then logic that describes the calculation. We can use this model with appropriate local farm and supply chain data to understand how management decisions and activities, timing and stock or crop productivity impact on emissions.

Automated systems on farms that capture data about crop production, livestock weights and production, and farm activities can also deliver data for a custom life-cycle assessment. Benchmark data across multiple farms and it becomes possible to identify the patterns of complete vs missing data, to understand how climatic constraints change emissions, or to identify outliers that need to be more closely examined.

A note of caution here: as we’ve learned from nutrient budgeting, farm systems can be varied and life-cycle assessment models are frequently based on the “typical”. An outlier result may indicate greater variation than the model can handle, rather than a more or less efficient farming system.

Demonstrating animal welfare

Animal welfare and the ability to live a healthy and natural life is another area of concern to consumers. Here too, metrics collected on-farm can be the subject of automated analysis to demonstrate good practices are followed.

In Europe where a premium is payable for “grass-fed” dairy in some regions, farmers are experimenting with the use of monitoring devices – smart tags and neck bands for example. These devices capture data that provide farmers with early warning of heats and potential animal health issues – raised temperatures, more or less movement, and reduced eating for example – but can also be analysed for patterns that only show up in outdoor grazing.

In other jurisdictions, veterinary product purchase, use, and reordering records can help to demonstrate compliance with animal health plans worked out between farmers and veterinarians, and hence demonstrate good welfare practices and appropriate use of medicines. Paper records have been used for this purpose for many years, but software technologies and automated data analysis can reduce the burden of data collection and the need for manual audits and analysis.

Practical application

Some producers will find the thought of such automated systems invasive and potentially threatening. Certainly, given the potential for outliers, for good practices that just don’t quite fit the expected mould, and for technology glitch or human error, you couldn’t use these measures as legal baselines that determine “rights to farm”.

Nevertheless, application of technology and analytics such as these can help us as we seek to improve farming practice and improve the integrity of our food supply chains. A good starting point might be to apply these as tools for committed producer groups that are already aligned with supply of a premium product or market.

 

This article was first published at http://www.rezare.co.nz/blog/.
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we apply software and models to agricultural data.

What do consumers know about your supply chain?

Consumers. A jaded and cynical bunch. I include myself in that statement.

Just last weekend, a lovely salesperson was extolling the praises of a new smoothie product (“would you like to try it sir, it’s packed with fruit”), while I was remembering comments from my children about the level of sugar in smoothies and trying to see what was on the ingredients panel.

Studies by the Hartman Group would suggest that consumers are interested in more than just what a product’s packaging looks like, instead wanting to know:

  • What ingredients are in the food or beverage product (64%);
  • How a company treats animals used in its products (44%); and
  • From where a company sources its ingredients (43%).

Of course, that’s not to say we are always completely logical and analytical. When I buy Bella Pane bread at our local farmers’ market, I don’t ask to see the ingredients list, or the best-before date, or ask when it was made. Probably Mike has already told me he got up at 3am to bake the day’s bread, but even if he hasn’t done so, I gain a level of confidence and trust from his local proximity, previous discussions, and the farmers’ market brand story.

That level of trust and confidence in product quality, source, and ingredients is what supports positioning of premium food products. A large North American corporate recently discovered that promising “Food with Integrity” was only a start, and those promises needed to be backed with processes and checks to maintain confidence in their products.

I’ve spent a while recently considering how the information we collect on farm can support the broader story about premium protein products. The Hartman Group research would tell us that consumers in the US are interested in:

  • Hormone free (52%);
  • Free of antibiotics (49%);
  • Artificial (48%);
  • GMO-free (41%); and
  • Organic (31%).

When it comes to animal welfare consumers want to know that companies avoid inhumane treatment of animals – and while they may not know the details of what that means, the proportion of people who care is rising:

  • Other animals are not harmed in capture/raising (e.g. bycatch) (68%);
  • Animals are raised in as natural environment as possible (65%);
  • Animals are not used for product safety testing (65%);
  • Animals are not given hormones or antibiotics (63%);
  • Company supports animal welfare causes/organisations (51%);
  • No animals at all used in products (45%); and
  • Animals fed only organic food (33%).

We know that products and processes that meet these criteria – and more importantly, have a compelling story in these areas – may command a premium in the market, and are in a position to build stronger, more defensible brands.

Consumers expect products and brands to live up to the brand story they are told. When lack of integrity in process or supply chain is exposed, consumers act angrily, as though we have been “tricked” (read Seth Godin’s “All Marketers are Liars” to learn more of how this works).

For that reason, any claims we make about our agricultural products having green origins or being “very pure indeed” need to be backed up by guides, processes and records that demonstrate our commitment to those brand values. Claims of greenness or purity are potentially for naught if we don’t have both safeguards and evidence in place.

Hence the importance of Farm Assurance or Good Agricultural Practice programmes, and the need for audits and for simple to use, on-farm record keeping tools that back up the story. We’re working on some of the latter with our partners. It’s hard work, because farmers are busy people with limited finance. In order for supply programmes to really deliver the benefits promised by the brand, I think we need to do two key things:

Link the activities to the brand story

Make sure everyone who has a role in the supply chain understands how their role contributes to the brand and to the consumer experience. Spell out how actions on farm impact the supply chain: safety, provenance, and in-market claims. Ensure staff know the risks to the business if product integrity fails.

Make it easier to comply than not

Most audit schemes today run on paper – recording pages in a paper book or filling in forms. For practical reasons, these are filled in at the farm office, and often updated just before the auditor arrives. We remove a substantial barrier if it is easy to capture information in the field rather than spending evenings in the office. Reusing information captured for farm assurance records to provide insights for farm management aligns goals and makes adoption more likely.

Your thoughts?

Consumer expectations have been changing over the last decade. Our supply chains and production systems are evolving to meet those expectations. This will require a greater commitment from us all to transparency and integrity, making sure what we do lines up with what we claim.

Do you manage a supply programme, or participate as a farmer, grower or processor? We’re interested in your thoughts. Drop me a note in the comments, or contact me directly.