World Food Quality Economics

Dr Arden Andersen
August 2006

Issue: Worldwide in production agriculture, growers, brokers and retailers attempt to
differentiate themselves from their competition in order to win contracts and retail
shelf space. The ultimate aim is to win consumer favour and subsequently consumer
business. At the bottom line it is the consumer who pays the bills, who actually
shells out the "dollars" for the end product which are then distributed from the retail
collection on down the distribution chain to the grower.

Key: Consumer Demand
Consumer demand, more than ever, is dictating change in agriculture because
consumers are spending their dollars differently than in the past. International
statistics show that as consumers become more aware of the health impacts of their
diet and lifestyle, they alter their food buying habits. They are seeking food choices
that positively impact their health and the health of their families. These choices are
transposing to the continued growth of the "organic" industry, now accounting for
about 1.5% of all food sales, consistently growing by about 20% per annum for the
past 15 years.

Why: Health concerns, safety, food quality
Consumers want pesticide free, non-GMO foods that maintain and improve their
health. It is that simple.

THE CONSUMER IS KING/QUEEN. THE CONSUMER HAS THE DOLLARS AND
THOSE WHO HAVE THE DOLLARS RULE!

Future: No longer will perception of quality suffice. The agricultural industry must
actually produce food with verified quality: high brix, high/comprehensive nutrient
density which in turn gives superior taste, superior shelf life, safety, cleanliness and
satisfies all the pro-environmental philosophies.

Reality: Growers who can produce high brix produce experience no competition in
national and international markets. High brix and nutrient density impart the health
giving nutritional density the consumer desires and by default solve the shelf life,
safety and cleanliness concerns of the consumer by eliminating the need for
pesticides. Using biological agriculture approaches to re-mineralise and repopulate
soils with beneficial microbes result in more yield per unit of input than can be done
conventionally.

China is opening an area the size of two to three Midwestern US states dedicated to
organic production driven by market demand and retailers such as Wal-Mart.
Organic prices are predicted to drop to the lowest common denominator and the
present ‘procedure based' organic production in the developed countries will
struggle.

For over seven decades conventional agriculture has practiced its "science" in the
field/paddock leaving a wake of environmental disasters and human tragedies as
well as resistant diseases, insect pests and weeds. Pretending that continuing such
"science" in the future will yield a different outcome is the epitome of insanity:
repeating the same mistakes while expecting a different result.

Message: The consumer is asking for real quality: high brix and nutrient density.
We must learn and implement the real science necessary to produce food
commodities demanded and paid for by the consumer in order to survive and thrive
in the future from both sides of the equation: the production/supply side and the
human health and environmental integrity side.