Riding changing currents: How aquaculture fits in emerging

consumer markets

NC Aquaculture Development Conference

Hilton Garden Inn, New Bern

Debbie Hamrick, NC Farm Bureau, Federation

Work on Your Business

• Think about the business you’re in, not be “in” it

• The broader picture

• Frames to view what’s happening today?

• Urbanization, Demographics

• Trends in Food, Outside Influences

• Technology, Entrepreneurial Disruption

Most Important Points

• External factors affect your business; You have no control

• Be creative…work around, over

• Your customers are in the city: Embrace it

• Gen Y is changing everything: Quickly

• Many external forces are shaping food demand

• Be smart about how you position yourself in the market

• Your product that goes into retail channels is marketed to serious multi-channel shoppers

VIEW FROM ANDROMEDA GALAXY

…..a.k.a. stuff out of your control

Where we are

Billions of People

World Population Growth

Now 7.2 Billion by 2050 9 Billion

Fish

3 billion people +

middle class = Meat=Livestock

Corn/Soy consumption

India

1.2

billion

17%

China

1.3

billion

18%

BIG PICTURE: CITIES = CUSTOMERS

Big Picture: Urbanization

Just 17% of US population is Rural

77% Millenials want to live in the urban core

.

What does Urbanization mean? The Great Divide

The Atlantic Red State/Blue City Electoral Votes 2012

Proposition 2 vote

California (‘08) Standards for

Confining Farm Animals

What does urbanization mean?

DEMOGRAPHICS/ GENERATION CHANGE

Generation Y will change everything

…just like the Baby Boomers did

Population Millions

Millenials 1981-2000

• By 2020 50% of US retail spending

• Connect to something bigger than they are

• VERY educated, wait for YEMMie

• Amenity rich locations (urban areas/cities)

• Income/spending surge that Boomers had?

Baby Boomers 1946-1994

• Lifestyle preservation

• Continue to be force for 10+ years

• Drove fitness craze, now food=health & longevity

• Environment, Community: more interested in Local

• YEEPIEs

50% say are foodies; 60% these eat Fast Food 1x/wk

By Warren Solochek, NPD Group

National Fisheries Institute Conference

TRENDS IN THE BUSINESS OF FOOD

Food Market

• less income required for food, leaves more for fun

• Food@Home down long run, up recently

• SNAP increased from 4.5% in 2000 to 14.7% of food@home

$ Dollars

Big Trends in Food

• Increase in Fresh Food

• Value, but Value ≠ Price

• Fresh, Taste, Healthy Ingredients, Local, Convenience, Natural/Organic, Fair Trade, Dietary Needs, Sustainable, GMO free • (in that order)

Where we Shop

MultiOutlet Shopping

• 3% Americans visit 1 or 2 retail channels;

76% visit greater than 5 outlets

• Grocery Stores: 50% grocery sales

• 25% US grocery Wal*Mart

OUTSIDE IN: NON-AG INFLUENCING AG

Outside in: Policy Influencers

4000+ events

in 50

states

+Bonus

Philanthrocapitalism

Buffet, Gates,

Bloomberg

Meatless Monday

• 2003 @ Johns Hopkins School Public Health

• Health initiative:

• Reduce saturated fat by 15%=1 day/week

• --18% Americans say they participate

• --50% Americans aware

• --reduce BMI 5%, save $21 billion

• Why do it? • Poor: Health

• Wealthy: Environment

• HSUS: Meatless Monday = 1.4 billion fewer farm animals

Eat Sunshine

Food e-vangelists

• About ¼ global population

• Seek to convert others (not activists)

• Values trump price to degree

• Digital natives, want to know all

Consumer as CEO

TECHNOLOGY WWFFD? What would Fred Flintstone do?

In 60 seconds online in 2013 Fast Company

Facebook 250 Billion photographs

It’s affecting how we cook • 1/3 online cooks use their smartphones for recipes

• All Recipe, 15 billion recipes

• No. 1 Search: Chicken

It’s affecting how we eat

Four Square

500K restaurants 43+million menu items

Outside in: Change.org 18 countries

185 staff

Outside in Blogosphere

ENTREPRENEURIAL DISRUPTION

Line from Amazon commercial:

“What was wildly

impractical is now

completely normal. And

normal just begs to be

messed with.” --Bezos

Seattle, Los Angeles,

San Francisco

Disruptive Urban Ag Entrepreneurs

FarmedHere: the freshest, healthiest and the most local greens in Chicago. Environmentally sustainable, socially wholesome, economically viable: we make it happen. Jolanta Hardej

Ben Flanner 108,000’² in Brooklyn/Queens Diversified income: wholesale sales CSA (waiting list) consulting tours/events sauce/honey

Using Tech to disrupt

•Kickstarter

• Square

Open Source HACCP Plan

The Farmery Raleigh, NC

Now offering

Financing

Disruptive ideas, the last mile The only two links in the distribution

chain that are absolutely

necessary are the producer and the

consumer, everything else is

up for grabs, Adrian Moerman

"There's this wave of entrepreneurship and creativity happening in the food world, and Good Eggs is all about bringing that high-quality production right to your door," said CEO Rob Spiro, who co-founded the startup after he sold his last company, a social search service called Aardvark, to Google Inc. for $50 million in 2010.

Summary

• External factors affect your business

• Your customers are in the city: Embrace it

• Gen Y is changing everything: Quickly

• Many external forces are shaping food demand AND influencing how you can operate

• Be smart about how you position yourself in the market : Your product that goes into retail channels is marketed to serious multi-channel shoppers

You’ve got an edge they’ll never have:

Made in the USA

Contact information:

Debbie Hamrick

NC Farm Bureau Federation

Director, Specialty Crops

5301 Glenwood Avenue

Raleigh, NC 27611

Tel: 919-334-2977 (direct)

Cell: 919-302-9538

debbie.hamrick@ncfb.org