Consumers in the driving seat

“We need to tip the traditional view that has research trickling down to the farmer as the vehicle for change, to recognising that it is the consumer that pays for a product that is doing the driving,” said Locky McLaren, who held senior roles in Primary Industries and Resources SA (PIRSA) before creating his own consultancy.

“It’s no longer just a financial consideration about what is good value: there are questions about health, and whether it comes from a production environment that the consumer is comfortable with.

“Given that we’ve got just two retailers dominating the Australian food market, it’s an incredibly telling point that those consumers are influencing Coles’s strategy.”

Mr McLaren told the conference that this is one of several new paradigms that is transforming the farming business, and the businesses of those who advise the farmers.

“Industry innovation is far more complex and less linear than what we might have believed historically. It’s a move away from the view that research went to development went to extension went to farmer. It’s much more holistic and vibrant.”

That’s a good thing, in Mr McLaren’s view. For instance, the reform of the grains industry has made the whole grains value chain more exposed to the market.

“That’s not a bad thing: farmers will get consumer messages coming down the line, where they were blocked before.”

But farmers and their advisors will also have to be prepared to receive those messages, and act on them.

“Innovation only occurs where people are prepared to think more broadly, and to do things differently.”

That concept shifts thinking about the role of extension services, Mr McLaren said.

“This whole thing is about people: about how we get them to broaden their thinking, take on different ideas, test those with people they respect, and make appropriate decisions.”