Listen to consumers, academic urges

An international marketing expert is warning food producers they ignore retailer and consumer concerns over issues such as climate change at their peril.

Prof David Hughes, a branding scholar from Imperial College in London, said if food suppliers did not subscribe to retailers' sustainability agendas, they risked being dropped as a supplier.

"The green train has left the station - you better be on it," he said in an interview.

Prof Hughes visited Dunedin last week as the guest of Rabobank, and said international retailers were looking at a number of "green issues" concerning the products they stocked, such the effecton climate change, greenhouse gas emissions and sustainable production.

"I can't remember a time when composite issues have had such a profile," he said.

He gave the example of the Marks and Spencer supermarket chain in the United Kingdom, saying it had a goal of being carbon neutral by 2012, the inference to suppliers being what were they doing to reduce their carbon emissions?"If you are asking for premium prices, you have got to tick all the green boxes," he said.

Prof Hughes accepted there was little New Zealand could do right now to reduce methane emissions from livestock, but said that was no reason not to try and find a solution.

Asked about the inclusion of agriculture in the emissions trading scheme, Prof Hughes said the sector was much more important to New Zealand than it was in Europe.

The militancy of European farmers also meant it was not high on the European Parliament's agenda.

"It is in your longer term interest to be seen to be leaders," he said.

New Zealand led the world with supply chain integrity and food safety, and Prof Hughes said it should adopt a similar approach to climate change and environmental issues.

The New Zealand wine industry's policy of reducing its carbon footprint was an example of an industry taking a lead "rather than being pulled kicking and screaming".

His other message was that our commodity trading heritage was hampering our reputation as a food producer and our shift to supplying value-added products.

If consumers anywhere in the world were asked what foods Italy was famous for, Prof Hughes said they would be able to name many, but that was not the case if they were asked the same question about New Zealand.

Commodities had traditionally been easy to supply and margins were healthy, but as competition increased and production costs grew, New Zealand needed to broaden its outlook.

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