Friday, September 13, 2019

Forming an Opportunity Belief

As I sit and wonder about the significant amount of opportunity that is presented to farmers on a day-to-day basis, I can not help but to keep thinking of one opportunity that has been a large topic of discussion lately in the agricultural industry: the consumer demand shift towards organic farming that will require quite a few farmers to make this change on their own farms.

This consumer preference has really thrown a wrench in the agricultural industry in recent years as more and more people are not supporting conventional agricultural methods. Chemical use on crops has raised some red flags for consumers as the newer generations have started to take over the market, which the majority of these newer generations have this preference of organic crops. However, this has not been a problem that has only existed recently. Many have steered clear of conventional agriculture for years now, but have not made a huge impact on the market until recently because of multiple things like stories on the internet about the negative impacts of conventional farming and chemical use and advertising for the quality of organic crops. Because of this shift of demand, more and more farmers have started to switch over to this method of farming. The opportunity for farmers to switch over to organic agriculture, however, does not exist for everyone (at least for an immediate switch). This is because there are strict regulations to this type of farming which do not allow organic crops to be grown on the same ground that there has been chemical use until a certain time period, which makes it hard for a lot of farmers who need as much yield as possible in order to make a profit. This would require them to use new land or wait until this period is up to switch over into the organic market. I would say the opportunity presents itself to about less than half of farmers who use conventional methods.

To get more of an insight on this issue, I decided to interview three people who regularly grocery shop. The first person was a parent of a young child. They went into detail about the issue, stating that conventional agricultural methods were bad for the environment due to the overuse of chemicals on crops which can also be harmful to our bodies. This person in particular was not very aware of this need to switch to organic products until they realized that they were having a baby and wanted only the best for their kid. This is when they started to research on the internet and look into buying organic products and now they have started to only buy organic products and really pay attention to what they are putting in their bodies on a day-to-day basis. So far, this customer has been nothing but satisfied with the products that they are buying and said that their bodies have started to be more energized since they have switched.

The second person I interviewed, funny enough, actually turned out to be an agricultural chemical salesman in South Florida. He told me that although he is a chemical salesman and most people would think that he is just trying to sell as many chemicals as possible and not care about the environment, he thoroughly promotes the sustainable use of chemicals and supports the organic industry (to which he told me that organic farming still uses chemicals but only chemicals that are approved in order to label a product "organic"). It was not something that he thinks about 24/7 but tries to support both sections of the industry when grocery shopping. Being a chemical salesman, he became aware of the need when he started his job in the industry and it was a big adjustment for him when consumers really started to switch over. He stated that he is satisfied with the organic market and that it will most likely take over conventional methods in the future.

The third person I interviewed happened to be a huge supporter of organic methods. They were very passionate about the issue and went into detail that it was key that farmers started to switch over to organic methods. The environmental impact of conventional methods is almost becoming too much to solve and if we continue to not use sustainable practices, it will be very detrimental to our health, the environment, wildlife, and more. This is something that they wake up every day and do their best to only buy and support products that promote sustainability. They have been satisfied with their decision their whole life and will continue to promote these products and do their best to leave their mark and make a difference.

These interviews were very unique and educational. I learned that organic farming actually does use chemicals but only a select few that are approved for this method. This was very surprising to me because I have always thought that there was no chemical use at all. I also learned that more people support it than I thought and will continue to try and get others to switch over.

After these interviews, I believe that the opportunity for farmers to switch is still there. The only problem is, will they be able to handle profit loss now in order to make a profit in the future? Some small farms might not be able to, but larger corporations may be able to afford it, which may allow this opportunity to grow larger. I think that adaptation to the market is key. Without adapting to customer needs, you are losing business, but there is also a line to draw of how much adaptation is necessary. Will you be losing other customers to gain back those you adapted to? If so, it may be smarter to hold firm depending on how much you have lost.

3 comments:

  1. Hi Myles,
    I liked your submission and agree that there is possibly an opportunity regarding the transition to organic farming for current farmers. I constantly find myself in the grocery store leaning more towards organic fruits and vegetables in an attempt to be more healthy. I also think organic produce will continue to grow in popularity due it containing less chemicals and being more natural.

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  2. Hi Myles,
    I really enjoyed your post and found it to be interesting. My father works in the agricultural business so I know of the problems of organic vs. non-organic products. I feel that this issue has become really big lately as organic products are becoming more popular. I feel that it will be very hard for some farmers to make the switch because it will mean that they lose a lot in the beginning and most farmers can’t afford that loss.

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  3. Hi Myles,
    I can understand the opportunity in transitioning to organic farming from how you explained it in your post. It must be a difficult choice to make, as the cost of switching over to organic is big and some may not be able to take that hit of waiting for a period of time or having to buy new land to grow on in the mean time. .

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