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When consumer demands result in a product that commands a premium, they have to be met in the market and they have to be paid for, Robert Markus Erhard of Nestlé told the annual EU agricultural outlook conference on Friday.
There is a higher demand for organic, local, and for higher animal welfare standards
He said that in any type of food production you see, the requirements of the consumer have to be reflected in your products.
“There is a higher demand for organic, local, and for higher animal welfare standards.
"I am happy that those sorts of trends result in products that fetch a premium, because many of these additional wishes of the consumer also need to be met in a market – they have to be paid for.
“When we sell food, we sell trust. That’s what we do when we sell food.
"Food is very emotional, so we have to respect consumer wishes.
Being closer
“Being closer to where the food is being produced, having the opportunity to go and see it on site and getting an understanding of how the animals are treated – I think it’s extremely valuable.
"Milk does not come out of a factory and meat does not come out of a processing plant. It comes off a farm,” he said.
Consumer patterns
Consumption trends for the next 10 years show that milk consumption is to remain in decline and meat consumption is to decline too – from 69.3kg to 68.7kg per capita.
Erhard also said that there is a shift in consumer consumption patterns, but that it’s nothing new.
“If you’re looking at the millennial or at another consumer group, it’s nothing new, it always has been shifting.
"There is a difference in demand that is coming. It shouldn’t come as a surprise that millennials will want a different balance of diet.
“Looking at developing countries, as salaries go up, there are a lot of people who want to consume more meat and who want to have access to more meat and that is also driving demand for additional volumes,” he said.
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