Farm Perspectives Study, 2014 Main Findings September 09, 2014 s.alsop@marketprobe.com a.segers@marketprobe.com
Background The BASF Farm Perspectives Study is designed to examine the gap between consumers opinions and perceptions on the one hand, and the realities faced by farmers on the other hand. Key focus areas include the profession of farming, ethical aspects of agriculture, food production and consumption as well as sustainability. Insights from this study will guide the Crop Protection division s strategic decision-making. In 2011 BASF conducted the Farm Perspectives Study for the first time showing strong agreement between farmers and consumers. The study was conducted in Germany, France, Spain, India, Brazil and the USA - Main findings: http://www.agro.basf.com/agr/ap- Internet/en/content/news_room/Farm_Perspective_Study/BASF_Farm_Perspectives_Study In 2014 BASF has commissioned a second wave of a research study to investigate and monitor current perceptions and attitudes about agriculture among farmers and consumers in Germany, France, Spain, India, Brazil, the USA and China. Additional topics in 2014: sustainability, agricultural regulations, food issues, technology in agriculture and food waste. Note: As this study is the second wave of research, it is also important to identify possible changes in farmers and consumers perceptions and opinions. Where these do occur, the study seeks to obtain an indication of possible reasons or triggers for such changes. This report provides an overview of the study s findings in 2014 with comparisons, where appropriate, with the findings obtained in 2011. 2
Study setup: Objective: Examine the gap between consumers opinions and perceptions on the one hand, and the realities faced by farmers on the other hand USA Brazil Spain France Germany India China (2014 only) Consumers - 1.000 consumers / country Online questionnaire 20 min length anonymously Farmers - 300 farmers / country Telephone interviews (India & China face-to-face interviews) 20 min length anonymously 3
Relevance of Farming & its Perception 4
Satisfaction with Farming 2011 vs. 2014 totally satisfied very satisfied satisfied not really satisfied not satisfied at all (3) 2 1 (1) 4 2014 4 (2) 1 3 (3) (1) 4 1 2011 1 (1) 3 (3) 2 1 3 (4) P1 (F/C): How satisfied are you with your current situation as a farmer / with the way farming is conducted in your country? [5=totally satisfied 1=not at all satisfied] (2014: 2121 / 2011: 1802) (2014: 7322 / 2011: 6023) 5
Farmers Role in Society Farmers are providers of food 10 5 5 (totally) agree SP US BR IN 10 (9) 1 (9) 1 (9) (9) 3 3 (9) (9) (8) 5 2 8 () 8 () 6 () 6 () 8 () 4 () 5 1 () totally agree agree neutral disagree totally disagree US BR SP IN 6 () 6 () 5 () 4 1 () 4 1 () 6 () 5 1 () 2 2 3 3 4 2 (9) 3 (9) (8) (8) (8) (8) (8) P3 (F/C): To what extent do you agree or disagree with the following statements? [5=totally agree 1=totally disagree] (2014: 2121) (2014: 7233) 6
Farmers Role in Society Farmers are stewards of the land 10 5 5 BR IN (totally) agree US SP 10 (9) 1 (8) (9) (9) (7) (7) (8) 2 3 4 2 8 4 3 1 (1) 3 () 6 () 5 () 4 1 () 5 () 6 () totally agree agree neutral disagree totally disagree US BR SP IN 4 1 () 3 2 (5) 2 1 (1) 4 1 () 2 3 2 1 (1) 2 3 2 (1) 3 3 3 3 2 () (5) (5) (7) (8) (7) 3 3 (6) 2 (1) P3 (F/C): To what extent do you agree or disagree with the following statements? [5=totally agree 1=totally disagree] (2014: 2121) (2014: 7233) 7
Farmer Attitudes & Behavior 10 5 BR SP 5 In general, farmers use production methods that are sustainable for the environment US IN (totally) agree 10 (7) (8) (7) (8) (6) (7) (7) 3 3 1 (1) 3 3 2 () 6 1 () 4 3 1 (1) 3 5 () 4 3 (1) 1 3 3 2 () totally agree agree neutral disagree totally disagree US BR SP IN 1 3 2 (1) 1 2 (3) 3 1 (2) 1 3 (4) 3 1 (1) 2 (2) 3 1 2 (3) 2 (3) 3 1 (2) 2 3 2 (1) (5) (5) 1 3 (4) 2 1 (2) P6 (F/C): To what extent do you agree or disagree with the following statements about farmers as a professional group / about farmer attitudes and behaviour? [5=totally agree 1=totally disagree] (2014: 2121) (2014: 7233) 8
Farmer Attitudes & Behavior Farmers use pesticides responsibly 10 5 BR SP US 5 IN (totally) agree 10 (8) (9) (8) (8) (9) 2 (6) 6 3 2 5 (7) 2 5 1 () 2 3 2 () 3 () 5 1 () 6 () 3 () 5 1 (1) totally agree agree neutral disagree totally disagree US BR SP IN 1 2 (4) 3 1 (1) 1 2 (3) 3 1 2 (3) 3 (3) 4 1 (1) 1 (2) 3 1 2 (3) 2 (2) 3 1 (2) 2 3 (5) 2 1 (2) 1 2 (4) 2 1 1 (2) P6 (F/C): To what extent do you agree or disagree with the following statements about farmers as a professional group / about farmer attitudes and behaviour? [5=totally agree 1=totally disagree] (2014: 2121) (2014: 7233) 9
Farmers Role in Feeding the World 10 5 5 One of the biggest challenges for farmers is to feed the growing world population SP US (totally) agree BR IN 10 (9) 1 (9) (7) (9) (9) 2 4 2 (8) 2 (8) 4 2 5 1 (1) 7 () 5 () 6 () 6 1 () 5 () 5 1 () totally agree agree neutral disagree totally disagree US BR SP IN 4 1 () 4 1 () 3 3 3 2 () 2 3 2 () 2 3 2 () 5 () 3 3 3 1 () 2 (7) (7) (6) (6) (6) (7) (8) P8 (F/C): To what extent do you agree or disagree with the following statements regarding the need to feed the entire world / regarding farmers role in feeding the world, e.g. securing food supply for a growing population? [5=totally agree 1=totally disagree] (2014: 2121) (2014: 7233) 10
Farmers Role in Feeding the World 10 5 SP BR US 5 IN Producing sufficient amounts of food requires the use of pesticides (totally) agree 10 (8) 2 (8) 2 (9) (9) 3 5 1 (1) 5 1 () (6) 3 2 (3) 1 1 (5) 2 2 1 (3) 1 2 5 5 () 4 () (6) 2 3 1 (2) 1 totally agree agree neutral disagree totally disagree US BR SP IN 1 2 (4) 3 1 1 (2) 1 2 (4) 2 1 1 (2) 2 (3) 3 (1) (1) 2 3 2 (6) 1 (1) 3 2 2 (4) 2 3 (5) 2 1 (1) 1 2 (3) 2 1 1 (3) P8 (F/C): To what extent do you agree or disagree with the following statements regarding the need to feed the entire world / regarding farmers role in feeding the world, e.g. securing food supply for a growing population? [5=totally agree 1=totally disagree] (2014: 2121) (2014: 7233) 11
Consumer Attitudes Towards Agriculture & Farmers. 10 5 5 US Consumers care about sustainability in agriculture (totally) agree BR SP IN 10 (6) (2) 2 3 (3) 2 1 (2) 1 1 2 (4) 2 1 (1) 1 1 4 2 (5) 3 1 1 (2) 2 (4) 2 2 2 (3) 2 1 (3) 3 (5) 3 2 (6) 2 3 2 (1) totally agree agree neutral disagree totally disagree US BR SP IN 4 1 () 5 1 () 4 1 () 3 2 () 4 1 () 4 1 () 5 1 () 3 3 4 3 3 3 3 (7) (8) (8) (7) (7) (8) (8) P6a (F/C): To what extent do you agree or disagree with the following statements which reflect some possible consumer attitudes towards agriculture and farmers? [5=totally agree 1=totally disagree] (2014: 2121) (2014: 7233) 12
Role of Technology in Farming 13
Technology Perceptions by country (very big) benefit US BR SP IN Improved agricultural machinery 7 8 9 8 8 8 8 7 6 7 9 9 9 9 Improved fertilizers 7 7 5 9 6 9 5 7 5 5 9 8 9 8 Improved pesticides 5 8 4 8 4 9 3 7 3 1 6 9 8 7 Genetically modified crops *GMO in USA 2 6 3 7 2 7 2 1 1 6 2 5 Precision farming 7 6 8 8 6 9 8 6 2 6 9 8 9 8 EG1 (F/C): In your opinion, to what degree will the following developments benefit agriculture? [5=very big benefit 1=no benefit at all] (2014: 2121) (2014: 7233) 14
General Attitudes Towards Food, Nutrition & Lifestyle 15
Food Buying vs. GLOBAL RESULTS average on 5p. scale GM-free* (without genetic modification) 4,1 Domestic production 4,2 Organic production 4,1 4,0 *GMO-free in USA 3,3 3,1 Visual appearance 4,0 3,9 4,0 4,3 Price 4,2 Nutritional value 4,4 3,8 4,6 Freshness In Season 4,2 4,0 Environmental friendly packaging A2 (F/C): When buying food such as vegetables, fruit, cereals/grains how important are the following aspects to you? [5=very important 1=not important at all] (2014: 2121) (2014: 7233) 16
Sustainability in Agriculture 17
Sustainability Understanding - globally (1/2) vs. GLOBAL RESULTS 4 Soil protection 2 Healthy food 2 Land use 2 Water use 2 2 Fair farm wages Biodiversity protection and enhancement Environmentally friendly 2 2 Lower resource consumption Ability to produce sufficient food to feed the world population 1 1 Reduced emissions 1 Future marketability Reduced usage of chemical products 1 1 Good worker conditions on average 2.6 mentions on average 1.2 mentions AQ1 (F/C): What do you associate spontaneously with sustainability in agriculture? What does it mean for you? (2014: 2121) (2014: 7233) 18
Sustainability Understanding - globally (2/2) vs. GLOBAL RESULTS on average 2.6 mentions Biological/Organic farming Ability to produce good quality food Modern technology/innovations Produce in a cost efficient way Support from the Government Improved lifestyle No genetically modified crops Availability of energy sources (diesel/electricity) Regional/local production Food durability (long shelf life) other don't know 1 on average 1.2 mentions AQ1 (F/C): What do you associate spontaneously with sustainability in agriculture? What does it mean for you? (2014: 2121) (2014: 7233) 19
Sustainability Understanding by country (1/2) Soil protection Healthy food Land use Water use Fair farm wages Biodiversity protection and enhancement Environmentally friendly Lower resource consumption Ability to produce sufficient food to feed the world population Reduced emissions Future marketability Reduced usage of chemical products Good worker conditions average # of mentions US BR SP IN 1 1 2 1 2 1 1 2 7 7 4 6 4 2 1 1 2 6 1 5 3 2 6 4 2 2 6 6 1 2 2 5 1 1 1 4 2 1 2 1 1 2 5 3 1 3 2 2 2 1 2 1 1 2 1 2 3 3 1 3 1 1 1 1 1 1 4 1 1.2 1.0 3.6 1.4 2.8 5.1 3.5 1.0 1.6 1.2 1.0 1.1 0.9 1.4 AQ1 (F/C): What do you associate spontaneously with sustainability in agriculture? What does it mean for you? (2014: 2121) (2014: 7233) 20
Sustainability Understanding by country (2/2) Biological/Organic farming Ability to produce good quality food Modern technology/innovations Produce in a cost efficient way Support from the Government Improved lifestyle No genetically modified crops Availability of energy sources (diesel/electricity) Regional/local production Food durability (long shelf life) other don't know US BR SP IN 1 1 1 1 1 1 1 1 2 1 1 2 2 3 average # of mentions 1.2 1.0 3.6 1.4 2.8 5.1 3.5 1.0 1.6 1.2 1.0 1.1 0.9 1.4 AQ1 (F/C): What do you associate spontaneously with sustainability in agriculture? What does it mean for you? (2014: 2121) (2014: 7233) 21
Agricultural Regulations & Future Consequences 22
Current Perception of Agricultural Regulations vs. GLOBAL RESULTS 4 2 2 2 2 3 1 there are currently too many regulations applied to the agricultural sector current regulations affecting agriculture strike the right balance there is not enough regulation in the agricultural sector don t know AQ3 (F/C): Thinking now about the regulations currently affecting agricultural production in [country], which of the following statements best reflects your opinion? (2014: 2121) (2014: 7233) 23
Current Perception of Agricultural Regulations by country 6 3 US 1 3 2 2 4 2 3 BR 1 1 5 1 7 8 1 1 SP 2 2 2 1 2 3 2 1 7 2 2 3 2 2 4 5 IN 2 2 4 4 5 1 6 there are currently too many regulations applied to the agricultural sector current regulations affecting agriculture strike the right balance there is not enough regulation in the agricultural sector don t know 1 AQ3 (F/C): Thinking now about the regulations currently affecting agricultural production in [country], which of the following statements best reflects your opinion? (2014: 2121) (2014: 7233) 24
Future Challenges 25
Important trends for the next 5 years by country (1/2) Small farmers will disappear Tougher regulations Improvements in technology Water shortages More sustainable agriculture Climate change Labor shortages Better prices for farmers Improved seed quality Less reliance on agrochemicals Less subsidies More organic farming Higher input costs New pesticides Increased global demand for food Increased oil prices Greater use of agrochemicals More transparency for consumers The food chain will become shorter More GM (genetically modified) food US BR SP IN 1 1 1 1 1 3 3 4 5 2 3 1 1 2 3 2 1 2 1 1 2 2 3 4 1 2 3 1 2 2 1 1 1 2 4 2 1 6 1 5 5 4 4 1 2 3 2 3 3 1 1 2 1 2 2 1 2 1 2 2 1 1 1 1 F1 (F): What do you think will be the most important trends for agriculture in your country for the next 5 years? What is likely to change? (2014: 2121) 26
Important trends for the next 5 years by country (2/2) More subsidies More difficult to obtain a fair price/make profit Improved crop quality/higher produce Fewer regulatory constraints Shift towards no-till farming More farmer associations/cooperatives Precision farming No specific trends/changes Fewer land will be available Increased export Lower input costs Shift in crops cultivated Less livestock/dairy More respect for farmers Better logistics More support from the Government Less organic farming Higher number of farmers Less GM (genetically modified) food US BR SP IN 1 1 2 other: don t know: other: don t know: other: don t know: - other: 1 don t know: 1 other: 1 don t know: other: - don t know: - other: don t know: F1 (F): What do you think will be the most important trends for agriculture in your country for the next 5 years? What is likely to change? (2014: 2121) 27
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