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Studying consumer trends will benefit farmers

Lowell Catlett takes an in-depth look at the changing society

by Annie Cunningham

"We’re (consumers) weird, we’re stupid, but we’ve got money and we’re the consumer. If agriculture knows that, you own the consumer."

This is according to Lowell Catlett, a nationally known speaker on social trends and technology changes and a professor in the Agricultural Economics and Agricultural Business Department at New Mexico State University. He recently addressed the Ohio Farm Bureau Federation (OFBF) board, Nationwide dignitaries and other agricultural leaders April 3 in Jeffers Auditorium.

Catlett’s address focused on consumer trends and opportunities these trends lend to farmers. "The more we know about what the consumer wants, the more we can accommodate them and provide what they need," Catlett said.

The current generation of consumers has more disposable income than any other in history. Catlett said: "We’re more willing to pay for things we don’t necessarily need. We want a better quality product, and we want healthy products."

Health sells to an aging population, according to Catlett. The more products farmers produce that can make health claims, the better chance it will sell.

Baby boomers have no concept of retirement, Catlett said. "We know re-engagement." Catlett said 1 in 5 baby boomers will find another job or start a business after they retire, which means they will continue to have a disposable income and want higher quality products.

Make it easy

Convenience also is important to today’s consumers. In 1950, it took an average of an hour to prepare a family dinner – today it takes 12 minutes. "(Consumers) want a rotisserie chicken from the deli, a bag of salad and pre-baked bread. We’re too busy to spend that much time in the kitchen," Catlett said.

He added the number of single living households has jumped significantly. In the United States, 27 percent of the households are single-person, and only 24 percent are married with children. Convenience food items appeal to those who live by themselves.

Money spent on agritainment will continue to rise at a steady pace, according to Catlett. "The average American household spends $1,400 on entertainment a year, and you better believe agritainment will see a large portion of that," Catlett said, adding people want to get back to agriculture and will spend a pretty penny to do it. Catlett, a farm boy from Texas, said he and his wife paid a lot of money to work cattle on a ranch in Texas last summer. "It was my vacation, and what did I do – I paid a lot of money to work someone else’s cattle. It was my vacation, and I worked," he said.

The animal industry also offers opportunity to landowners. "Thirty-one percent of Americans have children, but 62 percent have pets," Catlett said. "If we can find a way to appeal to pet-owners, which includes horses, alpacas and goats, then we’ve got them (consumers)."

Technology

Catlett believes that every aspect of agriculture will soon be linked by technology. "Every corner of your farm will be linked to your cell phone, and you’ll know in an instant when there is a problem," said Catlett. With the use of e-mail, cellular phones, GPS , wireless protocol, etc., Catlett said farmers will be able to give consumers products faster and better than they do now.

OFBF sponsored this event as part of the Envisioned Future effort to enhance working partnerships within the Ohio agriculture community.

CAPTION: An animated Lowell Catlett expresses amazement at the advances of technology in farming. He predicts every corner of farms will be linked to a cellular phone in the near future.

 
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