“Today, people are understandably more conscientious about how the food they eat fits in with their values, where’s my food coming from, does it feel good on my tongue and in my heart,” said Jordan Clark, senior strategic sourcing manager for dairy with Albertsons Co.
Dairy is so delicious it creates a compelling value for the customer, and dairy has a social license today, he said in the latest “DairyLivestream” webinar.
To preserve that, it’s important the industry continue doing the good things it’s doing to reduce the environmental impact and ensure and validate that ingredients are being sourced ethically, he said.
“Consumers are increasingly interested in the methods that are employed in food production. The recent trends have required farmers and processors and co-ops to respond to demand issues related to consumer preferences and perceptions,” said Chris Wolf, an economics professor at Cornell University.
As a result, agriculture as a whole but dairy specifically is facing increased pressure to justify or sometimes adopt changes to production processes, he said.
Social license is important for many reasons, but the most fundamental aspect is without it, industries end up regulated and monitored, he said.
“They end up with extra laws and other regulations that they have to deal with, which increases cost and makes things less efficient,” he said.
The other side is that farmers are and have traditionally been trusted and admired. A Gallup poll in 2021 found agriculture was the most trusted industry in the U.S. The grocery industry was second, and the restaurant industry was third, he said.
At the same time, many Americans are disconnected from agriculture and simply have no context to understand the production methods and their potential impacts, he said.
“Given what seems like frequent bad press about agriculture, I think farmers can sometimes get frustrated by consumers’ lack of knowledge about the practices and technology that they utilize,” he said.
But the Gallup poll suggests there’s a lot of social capital the dairy industry can leverage to take a leadership role. The dairy industry needs to continue to look for improvement and tell that story in a positive tone, he said.
The industry needs to lead the discussion about the direction it’s moving, the measures that are going to be important and what the potential policies and market impacts are going to be, he said.
“I think it’s real important as an industry to listen to the customer, to listen to their values, Clark, the Albertsons’ executive, said.
The dairy industry holds a lot of the same values, finding how it can increase productivity while limiting inputs and environmental impact. Consumers want more stories that demonstrate they can feel good in their hearts to eat the food that’s delicious, he said.
“If we’re on the journey with them, I think we’ll be able to preserve our license,” he said.
