The Label Conversation Forum Roma - A Summary

The Label Conversation

7 November 2015, Roma Explorer’s Inn Function Centre

The Label Conversation Snapshot

By Sherrill Stivano and Liz Todd

The opportunity to gather and talk about a single label for Australian primary produce was a concept well supported with over 60 people attending The Label Conversation in Roma on Saturday 7 November.

Sherrill Stivano is not just a farmer, wife and mum, but someone with vision and foresight for Australian agriculture.  The Label Conversation saw the culmination of 12 months of work for Sherrill and her project, for which she was awarded the 2015 RIRDC Rural Women’s Award for Queensland.  The event was made possible with support from Liz Todd, a dedicated committee, the Maranoa-Balonne Catchment Management Association and sponsorship from industry, government and businesses.  

Sherrill opened the conversation by challenging forum participants to think beyond Country of Origin Labelling and look to how Australian agricultural producers can gain tangible benefits from effective labelling of food and fibre produce.  Domestic and international consumers would ultimately benefit from a single label, backed by credible standards, which could be a unifying step for Australian agriculture. Sherrill stressed it must be a grass roots movement, with farmers contributing to the foundation of the label.

Participants hailed from across the country, and globe, to join in the conversation.  Representatives were present from industry bodies including Meat and Livestock Australia, AgForce, Growcom, Australian Lot Feeders Association, and The Council for Sustainable Egg Farming and pork industry; along with government departments, researchers, community groups, businesses, farmers, consumers, council and politicians.

Member for Warrego Ann Leahy congratulated Sherrill Stivano for her initiative on an important issue.  Ann emphasised that if Australia doesn’t provide good practices, someone else in the world will do it for us, taking away market access and farm gate profitability.  This initiative is an opportunity for the region to set goals and direction, and for the rest of the country to see the progress that would better define our food on a local, regional and national level.

The RIRDC project funds supported the attendance of Andrew Blenkiron who is Vice Chair of the Red Tractor Assured Food Standards in the United Kingdom.  Andrew is also a farmer, responsible for Euston Estate that generates 60,000 tonne of produce on an annual basis.  It was clear from Andrew’s first hand account that a single assurance and label system has delivered direct benefits to farmers through streamlined assurance standards and auditing, consumer confidence in products, marketing opportunities and a positive image.  This achievement has been the result of 20 years of hard work across the whole supply chain to restore the tarnished reputation of the industry stemmed from major health and safety concerns in the 1990s. 

Andrew’s advice to Australia if building a brand or label, is to start at the beginning and demonstrate significant tangible benefits to producers.  The UK was forced to start the other way by demonstrating producer standards to consumers.  He advised using the label as a one stop marketing tool, with the focus on one brand that is easily recognised on the supermarket shelf, as multiple and even competing industry branding is confusing to consumers.

Specialising in consumer perceptions of agriculture is researcher Dr Heather Bray, from the University of Adelaide, who brought to the conversation insight into the issues of ethics and price surrounding consumer choices.   Driving consumer’s choice is taste, price, nutrition, freshness and safety.  Heather shared that beliefs don’t necessarily equal behaviour.  There is lots of literature about our choices for moral or “better” choices, which is competing with other messages producers are getting about cheap and fast food.  Consumers are making moral choices quickly as the complexity of types of information being asked to consider at time of purchase is too much.  They need to think about what the cow was eating, antibiotics, how the food was grown…; when they just want a steak.  They go to the brands they trust because they can’t process all of the information.  A new label won’t raise awareness of food production, but it can encourage purchase of products with the label over others due to high levels of trust in Australian farmers.

Greg Mills, Managing Director of Food Integrity Solutions weighed in on the conversation about building trust in our modern food systems.  He explained that trust equates to a social licence to operate or privilege of operating with minimal formalised restrictions, such as legislation or market requirements.  Losing a social licence means increased licensing, penalties and regulation by governments and supermarkets, which costs money, as demonstrated in the United Kingdom.  Trust in farmers is high, but agriculture’s response to values and ethical production questions is based on science and economics.  Consumers are looking for producers that share their values and indicate that trust, but are not necessarily finding it.  It is not about changing agriculture, but how we are talking about it.

Meat and Livestock Australia (MLA) shared their journey in the red meat industry and development of the “True Aussie” brand.  MLA is producer owned and a not-for-profit organisation.  They provide services to the red meat industry by gaining market access, supporting trade and technical access, and business development and brand building.  Lisa Sharp, General Manager Central Marketing Industry Insights, said consumers are asking for more as they become more sophisticated and seeking food experiences.  Looking broadly at markets and consumers, there are megatrends around sustainability and ethics as well as health and wellness.  As a result, the True Aussie brand was developed on sustainability, fearless food and feel good food.  Understanding consumer attitudes and behaviour i.e. ‘consumer insight’ informs all strategy development and marketing programs at MLA with a “think global” approach, customised for local markets.  Consumers do seek peace of mind, they want confidence in the product they are buying, and are concerned about sustainability and wellbeing.

Dr Ian Plowman facilitated several discussion questions with panellists Dr Heather Bray (Adelaide University), Greg Mills (Food Integrity Solutions), Richard Norton (Meat and Livestock Australia), Lisa Sharp (Meat and Livestock Australia), Georgie Somerset (AgForce), Dougal Gordon (Australian Lot Feeders Association), Rachel Mackenzie (Growcom), and Richard Routley (Southern Region Department of Agriculture and Fisheries).

What are the labelling systems we currently have and what are the strengths and weaknesses?  

Some key points were that the horticulture industry is lacking in compliance and consistent labelling that provides benefits to those producers doing the right thing.  There are currently areas of high risk relating to food safety, however all farmers are enjoying the premise that Australian grown means clean and green.  The meat industries are well regulated, with various brands and quality assurance programs currently in place including Australian Pork Industry Quality Assurance Program, Aus-Meat and National Feedlot Accreditation Scheme.

Consumers take three seconds to make a decision.  They are confused with so many types of labelling systems and are overwhelmed.  They are cautious about product statements and claims, and sceptical about traceability through distribution facilities.  Consumers are let down, they want to make a choice about products they buy.  The systems are in place but consumers are not provided with the information or a label that underpins the understanding of the systems, so they go to farmers markets where there is no accountability.  Collectively the fresh produce sector is letting agriculture down, but it is also not accessing markets opportunities.

For some industries, “it is those not part of the brand that is bringing the brand down”.  Small producers are difficult to engage, non-conformers are tarnishing reputations and provoking activists, and each producer creating their own brand makes it hard to have a collective industry identity to market internationally.  

Gaining retailers support for consumer and producer benefits needs to be win, win, win.  Coles and Woolworths each have their own systems in place with tight controls over food safety and quality.  They need a point of difference and their branding is very valuable. There would be a better chance of adoption of a national label by new entrants.  With Costco and other global players coming to Australia, it would be an ideal situation to provide them with an ultimate peace of mind.   

What is the ultimate benefit to the consumer?  

When Australians buy beef or lamb, we know with certainty they are making decisions by 1. Price, 2. Nutrition, 3. Versatility and 4. Taste.  So if a label is about the integrity of the product it will not fundamentally drive demand.  We can ensure we have consumer and community support for agriculture, and a label might be one way to do that, but domestically price is the major driving force.  The same applies to eggs, for all of the media hype around caged egg, sales have fallen by .5% and may be increasing.  There has been anti-marketing regarding the product and branding, but consumers are still demanding caged eggs.  We often think what the market wants is what the loudest consumer wants.

What are the benefits and opportunities a single Australian agricultural products labelling system might offer? 

A single system would underpin the standards and traceability, enabling producers to get on with being the story tellers by talking about their products and marketing the experience. 

A single labelling system needs to offer increased profitability.  If a single brand/label offers market advantage, market access, and increased demand it will give that label a price advantage. Potentially if one system or label covered all of the existing assurance systems, it would improve adoption of practices at the farm level, it would reduce the cost of multiple audits and ensures compliance, which should result in a profit for the producer.

Outside of agriculture, all consumers see you as farmers.  A single label will bring agriculture together to present a single face.  Industries that don’t learn don’t last.  Industries are repeating the same research with the same people, which is a waste of time and money.  It might be time for agriculture to have a conversation internally, then engage the broader public.  Agriculture needs to talk to each other and be seen as a collective industry, not competing against each other.

What consumers say they want and what they put in their trolleys are different.  Having a social licence in the United Kingdom is providing an £80 benefit per livestock, with the continuing ability to farm under great pressure from the environmental sector.  Farming in the United Kingdom is under scrutiny, but the system has the capability to demonstrate confidence.  Programs are not Best Management Practice unless it delivers a bottom line to the farmer. 

Agriculture has left it up to others to tell our story.  Major brands have a whipping hand unless agriculture develops its own standards.  Australia has great attributes, but we don’t do great job of selling it compared to New Zealand who does a great job of selling itself and brand awareness. 

A national brand offers the opportunity address the standards and certifications so we get a chance to talk about the things we do, what we do, about the values and to tell the stories. 

How would this be driven forward by producers?  

Engage in a conversation not just about a label, but where we want agriculture to be in 20 years’ time, if it leads to a label that would be great.  Producers need to get involved in industry and organisations that have a voice at national level and find a path that has national influence.

In the United Kingdom, with quality assurance systems in place, moving forward is about the tangible benefits of being better together as an industry.  The industry is better with all working together and not about one sector against another.  The industry doesn’t do well if one part of the industry isn’t performing.  Experience shows it is easier to get discounters such as Aldi on board, as they leave quality assurance checks to contractors and don’t have their own systems.  Engaging consumers is putting pressure on retailers by demanding Red Tractor products.    

Georgie Somerset offered closing comments to the conversation started by Sherrill Stivano, that one should “never doubt that a small group of citizens can change the world”.  Georgie challenged participants to make a commitment of time, treasure or talent to continue the conversation and support those who are stepping up to challenge the norms and changing the face of agriculture.

Video Links for the Forum:

Presentation by Andrew Blenkiron Vice Chair of Red Tractor Assurance UK

Presentation by Dr Heather Bray Senior Research Associate The University of Adelaide

 Presentation by Greg Mills of Food Integrity Solutions

Question Time for Dr Heather Bray and Greg Mills

Presentation by Richard Norton, Managing Director of Meat & Livestock Australia and Lisa Sharp, General Manager of Central Marketing and Industry Insights

Panel 1 Addressing: What are the labelling systems we currently have and what are the strengths and weaknesses?  

Panel 2 Addressing:  What are the benefits and opportunities a single Australian agricultural products labelling system might offer? 

Panel 3 Addressing: How Might this conversation be driven forward by producers?

The wrap up

The event was sponsored by:

Member for Warrego Ann Leahy

Performance Feeds

Landmark Roma

QRAA and Tony Koch

Business Excellence Program

Roma Chamber of Commerce

Roma Explorers Inn

Greg Mills of Food Integrity Solutions

Dr Ian Plowman

Maranoa-Balonne Catchment Management Association

Bellevue Feedlot

Liz Todd

Photos supplied by Georgie Somerset, Sherrill Stivano & Liz Todd
Videography by Mick Russell of Linchpion Studios