Be mindful of changing consumer demand - economist

Economic challenges faced prior to the coronavirus disease (COVID-19) global pandemic had already changed the demands of South African consumers, according to Dawie Maree, head of information and marketing at FNB Agriculture.

Maree said the low economic growth experienced in South Africa over the past couple of years had placed consumers’ disposable income under pressure, and they had subsequently started to switch to cheaper alternatives for protein and other nutrition sources. “These changes in demand were accelerated by COVID-19, and we expect it to continue for the foreseeable future.”

Maree was participating in the Produce Marketing Association’s

PMA Talks online event, during which experts provided insights and discussed the challenges facing the produce supply chain during the pandemic.

Maree advised farmers to be well informed about the changing behaviour of consumers, and to meet their demands accordingly. He added that growers also needed to be informed about what was happening on the global market.

“In the past, farmers produced to sell. However, as consumerism progressed over the past decade, it became more important to [be conscious] of what the domestic and international markets need, than the other way around.”

He also stressed that as markets were becoming increasingly complex, it was important for growers to start looking at diversifying their portfolios. According to Maree, diversification would become key as the industry started to emerge from the COVID-19 lockdown period.

“With the change in consumerism, perhaps look at diversifying the product range you are currently offering consumers.”

Maree also advised growers to look into the possibility of marketing their products in different market segments.

“The profitable high-end business will always be an option, but there might also be good opportunities in terms of the middle-income and low-income market segments, where you can place a certain [share] of your production.” – Jeandré van der Walt