VOLUME 5 Perception Survey & Sustainability Research Roadmap
CONTENTS Where We ve Been (2011-2015)...1 Putting things in perspective... 2 Sustainability Landscape...3 Who we surveyed...3 Research highlights...3 How do consumers define sustainability?...4 Does sustainability really matter to consumers?...5 Other key highlights...5 How we tell our story...6 Perception Benchmark Survey...7 Methodology/Who we surveyed...7 Consumer perceptions of agriculture...7 Understanding consumer mindset...8 Shifting purchase drivers...11 Understanding consumers, evangelists and activists Digging Deeper into the Consumer Food Connector... 12 Key Implications...13
WHERE WE VE BEEN Since 2011, the U.S. Farmers & Ranchers Alliance (USFRA) has been working to build trust in American agriculture by understanding the perceptions of consumers and influencers about how food is grown and raised. Each year we have conducted in-depth research to achieve this goal. VOLUME 4 Perception Survey Research Roadmap Driving Trust 2011 USFRA developed a Research Roadmap. The research scope focused on starting a dialogue and listening to rebuild trust. Insights from dial testing, focus groups and quantitative surveys drove this foundational strategy. 1) Research clearly illustrated that consumers were previously misinterpreting core messages from the food industry. 2) A new strategy developed which modified interactive language to be more representative of an ongoing dialogue between consumers and farmers/ranchers. 2012 In 2012, USFRA set out to develop messages that resonate with consumers and influencers, focused on two key objectives: 1) Define the macro messages around the concept of continual improvement and messages that move influencers and consumers emotionally. 2) Provide direction on the language to use when addressing key topics, such as sustainability, biotechnology, animal welfare, crop protection, antibiotics and hormones. 2013 In 2013, USFRA developed the Transparency and Consumer Trust Survey to provide insights on what consumers desire when making food-purchasing decisions. The survey included: 1) A national online survey of 1,000+ consumers and food connectors. 2) Development of a private online forum of 300 highly engaged food influencers. 3) Individual interviews/focus groups with consumers and food connectors based in New York. 2014 In 2014, USFRA set out to better understand what drives trust among consumers and influencers. The intention of the research was not to change minds or any singular issue but to identify the points of activation that can get attention. Research included: 1) Second Annual Perception Survey (2014); includes meta-analysis on drivers of trust. 2) Advancing the Dialogue research on creative executions (December 2013/January 2014). 3) Precision Ag research (July/August 2014). 2015 In 2015, USFRA conducted our third Annual Perception Survey, which provided benchmark results and explored consumer opinion on farming and ranching. 1) Through this research we also continued to evaluate and set benchmarks for consumer perception on sustainability. 2) The Perception Survey complemented a research study on sustainability that was conducted in summer 2015 and included a telephone survey and focus groups in Los Angeles and New York. [page 1]
PUTTING THINGS INTO PERSPECTIVE The majority of Americans believe that farmers and ranchers in the United States are committed to improving how food is grown and raised. Since 2013, there has been little movement among those who feel this way. Consumer Food Connectors (CFCs) are slightly less likely than General Consumers to be unsure. This is expected as they are becoming more educated and interested in agriculture practices. While representing roughly 10% of the population, CFCs are influencing issues at a grassroots level and are greatly shaping food conversations. They are the tail that wags the dog in terms of opinions about food. Most notable from the Perception Survey was finding the link between sustainability and the perception of farming and ranching. We learned that those who agree that current agricultural practices are sustainable are notably more likely to believe agriculture is on the right track and trust the industry. The link between sustainability and positive perceptions of farming and ranching in the U.S. holds true for both General Consumers as well as CFCs. [page 2]
SUSTAINABILITY LANDSCAPE Who We Surveyed USFRA partnered with The Tarrance Group to conduct online interviews in the summer of 2015, surveying a total of 1,000 millennial parents, millennial non-parents, CFCs and General Consumers. CFCs are defined as men and women between the ages of 21-65 who: >> Do not personally work or have immediate family who works on a farm. >> Have a bachelor s, graduate or professional degree. >> Have a strong interest in politics and government policy. >> Consume news through the TV, radio, newspaper or online at least five days a week. >> Are very involved in or make all household decisions and purchases related to food. >> Engage in advocacy activities related to food and the food industry on a regular basis. >> Do not have a strong pre-bias view of conventional (non-organic) farming. Additionally, we held in-person focus groups and conducted telephone surveys to augment our survey sample set. Research Highlights In our research, we found that, above all, 78% of consumers care about these four main categories when it comes to areas of interest in farming and ranching: Water Soil Air Habitat [page 3]
SUSTAINABILITY LANDSCAPE (CONT.) Research also showed us that the impact on humans is always top of mind for consumers: >> Improving human health through access to safe, nutritious food. >> Impact on local community (specifically, improving the social and economic well-being of agriculture communities). How Do Consumers Define Sustainability? Through the research, we have found that sustainability can mean different things to different people. There is no, and not surprisingly, universal definition of sustainability, and varied perceptions have led to serious confusion. Concepts that consumers associate with sustainability include: >> Environmentally responsible >> Integrity >> Ethical >> Accountable for actions >> Trustworthy >> Supporting local communities >> Socially responsible Approximately half of the consumers polled could not state what sustainability means to them, although they say it is important. When polled, about half of respondents from millennial parents and CFCs believe, The way that most of today s farming and ranching operations in the U.S. grow and raise food meets the standard of sustainability. 49% 52% 42% Millennial Parents Consumer Food Connectors General Consumers [page 4]
SUSTAINABILITY LANDSCAPE (CONT.) And, approximately 56% of respondents agreed that Farmers and ranchers use new technologies and innovations to protect the environment. Does Sustainability Really Matter to Consumers? Our research showed three quarters of CFCs and more than half of General Consumers say they consider the sustainability of how food is grown and raised when at the grocery store. When discussing what really matters to consumers when it relates to sustainability in farming and ranching, they listed the following as top priority: >> Responsibly managing and replenishing the finite resources that go into growing our food and raising our animals and doing more with less. >> Protecting the environment that is impacted by our farming practices, specifically the air, soil and water, so it is available and healthy for generations to come. >> Ensuring our food nourishes all people regardless of socioeconomic status by making it accessible, affordable and healthy. >> Strengthening our local communities by contributing to economic growth and the ability to thrive for all who work on or live near farms and ranches. Other key highlights One interesting finding is that when speaking with consumers, women are much less likely than men to say farming and ranching are sustainable. Women can be more critical of the practices of the industry as a whole. 37% 59% Women Men [page 5]
SUSTAINABILITY LANDSCAPE (CONT.) How We Tell Our Story The good reputation of farming and ranching is under threat when it comes to sustainability. There is a strong story to tell around farming and ranching practices, where our food comes from and the future of farming and ranching. Farmers and ranchers are being left out of the conversation but the voices of farmers and ranchers are a critical component of the story. It is important to keep in mind that: >> Sustainability is an inherent part of the farming and ranching business. >> Farmers keep future farming generations top of mind. >> Doing more with less is part of being good stewards of the land. >> Sustainability = smart business practices. Nuances that make sustainability relatable is to focus on: >> Making it better for the future versus defining success of the past. >> Multigenerational history does not resonate to non-farmers but future commitments do, including preserving the land for the next generation. Language that resonates well: >> Water, soil, air, habitat. >> Improving the environment around my farm. >> Limiting impact. >> Improving human health. >> Access to safe and nutritious food. >> Efficient use of land. >> More with less. >> Using new technologies equipment and software. >> Making business more profitable through sustainability. >> Sustainable food is affordable food. Tips when speaking to an audience about sustainability; first step is to acknowledge you care about the environmental impact from the farm but also understand that: >> You will not convince your audience their opinions are wrong. >> Discussing the future creates a space of shared interest. >> Agriculture is continuously improving in sustainability and the practice to achieve this is well received. [page 6]
PERCEPTION BENCHMARK SURVEY Methodology/Who We Surveyed USFRA surveyed a total of approximately 1,000 General Consumers and Consumer Food Connectors focusing on the perception of: >> Purchase decisions. >> Topics of interest and consideration. >> Consumer advocacy. >> Sources of information. >> Confidence in farming and ranching. >> Organization awareness and affinity. >> Crosstab comparisons. The survey was designed and analyzed by Ketchum Global Research & Analytics and fielded by Research Nowanmong. Consumer Perceptions of Agriculture In the last three years, CFCs show a slight increase in perception that farming and ranching is going in the right direction in the U.S. and a downward trend in the belief that the industry is going in the wrong direction. CFCs are more polarized. For general consumers, one-third (32%) of people simply don t know if food production is moving in the right or wrong direction vs. 13% of CFCs. [page 7]
PERCEPTION BENCHMARK SURVEY (CONT.) Among consumers, there has been virtually no movement over the past three years in the percentage saying food production is moving in the right direction. However, there is movement from the wrong direction into the don t know category indicating a shift into the moveable middle. Understanding Consumer Mindset Understanding the consumer mindset is important when framing messaging and developing strategic actions to addressing agricultural practice, the business and industry to consumers. CONCERN OVER LONG TERM HEALTH TRUMPS IMMEDIATE SAFETY CFCs and General Consumers are both much more likely to feel confident that their meat, poultry, grains and produce are safe than they are to believe they re healthy in the long term 13% and 18% respectively. This shows that even if people believe food is safe, they don t generally feel good with how food production impacts long term health. Similar scores for both CFCs and General Consumers indicate that CFCs aren t necessarily driving these concerns for a mass population. [page 8]
PERCEPTION BENCHMARK SURVEY (CONT.) They are talking more about food processing than ever before. >> Food processing is the hot topic among CFCs, three-quarters (73%) are not only talking about it more than they were a year ago but it is the topic that is of the most interest (58%). >> Animal care is also being discussed more often among CFCs. >> General Consumers talk less about most topics in general (GMOs, hormones, antibiotics) with the exception of how food is processed and animal care which have remained the same. >> CFCs continue to discuss sustainable food production, antibiotics, hormones and GMOs although interest in learning more is down across all topics. [page 9]
PERCEPTION BENCHMARK SURVEY (CONT.) AMERICANS ARE TAKING LESS ACTION AROUND FOOD Contrary to belief, both CFCs and General Consumers advocate less for changes in food offerings year over year. Although more than half of CFCs say that they have advocated for change in the last year. AMERICANS DO VIEW FARMERS AND RANCHERS AS CRITICAL TO THE ECONOMY When asked to rank different words that describe farmers and ranchers, the highest response was important to the economy, followed by supports the communities in which it operates. The biggest increase in activity for both CFCs and General Consumers is boycotting a store or restaurant. Healthier options and locally grown food are most commonly advocated for, however advocacy dropped significantly between 2014 and 2015 for both CFCs and General Consumers. [page 10]
PERCEPTION BENCHMARK SURVEY (CONT.) FAMILY FARMS ARE VASTLY UNDERESTIMATED BY CONSUMERS Most CFCs and General Consumers do not believe farms are family owned or small businesses. Shifting Purchase Drivers Through the research, we have found that CFCs, when considering purchase decisions, rank highest (above 75%) quality, nutritional value and how food is processed. In comparison, General Consumers rank food processing much lower than CFCs almost 30% lower. It is interesting to note that consumers top considerations are quality, nutritional value, clean food and price. Price has a higher priority in consumers top considerations. CFCs are also becoming more concerned about food processing and have begun to pay closer attention to labels and ingredients in food purchases. [page 11]
PERCEPTION BENCHMARK SURVEY (CONT.) CONFIDENCE AND COMFORT IN THE PRODUCTION OF MEAT, POULTRY AND GRAINS LEVELS OFF After an initial drop in 2014 regarding comfort in the way meat, poultry and grains are produced, perception has largely leveled off in 2015. Similarly, confidence in how food is grown and raised also remains fairly consistent between 2014 and 2015. Interestingly, while many are confident that their food is safe when purchasing, less are likely to feel confident in the long-term health implications of the food. This suggests that food safety is table stakes while long term considerations linger in the minds of consumers. Understanding consumers, evangelists and activists Digging Deeper into the Consumer Food Connector We looked deeper at the CFC audience segment. Based on their participation in the Perception Survey, we identified three subsets of this group: >> General connectors are active in the food space cooking and sharing recipes. >> Evangelists who actively recommend and critique products, brands and companies, and are actively voicing their opinion about all things food. >> Agricultural activists who are vocal about agricultural practices used in food creation. Agricultural activists are the harshest critics, as they are more likely to the think that the way food is grown and raised is going in the wrong direction. They tend to be female, with an average age of 37 and report high levels of becoming more knowledgeable about U.S. farming and ranching in the last year. Three in four Ag activists have changed their food purchase habits in the last 12 months. General connectors are the least sure of the direction of agriculture and from the survey this is seen in reporting the highest percent of Don t Knows. This is an area that USFRA plans to explore further in future Perception Surveys. [page 12]
KEY IMPLICATIONS The level of trust in farming and ranching amongst CFCs and Consumers remains consistent. >> Trust in farmers, ranchers, farming and ranching remains consistent over the last three years, though local and organic farming continue to be more trusted. Videos, documentaries, friends and family continue to be among the most influential sources of information on farming and ranching for CFCs and Consumers. When asked how media coverage related to how food is grown and raised in the U.S. made them feel, CFCs are more likely to say they were inspired to change their eating habits and motivated to change their purchase habits. >> This news coverage makes CFCs feel worried (32%), excited about nutritious choices (29%) and manipulated (27%). Similar issues are of interest to both CFCs and Consumers 1) How food is processed; 2) Sustainable Food Production; 3) Animal Care; 4) Use of hormones and growth stimulants and 5) GMOs. >> CFCs are talking more about how food is processed and animal care, and less about crop inputs as compared to 2014. >> General Consumers are less likely than CFCs to talk about most topics in general GMOs, hormones and antibiotics. And, there is consistency on the overarching themes and messages USFRA has tested in the past: >> Transparency and Awareness linked to Improved Agriculture Practices information availability is linked to positive perceptions about continuous improvement. >> Concerns that Some Practices are Driven by the Bottom Line versus Impact on Consumers and Environment perceptions that business objectives and practices tied to the use of GMOs, antibiotics and hormones outweigh agriculture s focus on consumer and animal health were evident. >> Concerns about Long-term Health Affects Continue to Raise to the Top people believe meat, poultry, grains and produce sold are generally safe, but are not confident these products are healthy for them in the long-term. >> Highlighting Farmers and Ranchers as Important to the Country s Economic Engine when asked to describe farmers and ranchers, the highest response overall came from CFCs who said they are important to the economy followed by supports the communities in which it operates. Yet, critical to all messages moving forward is the need to incorporate details related to sustainability adding sustainability to other messages tested improves perceptions of farming and ranching for both CFCs and Consumers. [page 13]
16020 Swingley Ridge Road, Suite 300, Chesterfield, MO 63017 636-449-5086 info@fooddialogues.com www.fooddialogues.com @usfra with hashtag #FoodD www.facebook.com/usfarmersandranchers This document was funded wholly or partially by one or more Checkoff programs. 2016 USFRA