The Commodity Business in Food and Agriculture is Over

Innovations like plant based beef, CRISPR gene editing, and meal kit delivery models have the potential to transform the entire food value chain. Forward thinking agribusiness & food executives are wondering how these trends could change the game, while others are pretending these innovations are overfunded startup fantasies of hoodie wearing hipsters. But here’s something… Read more »

The Amazon’ment of meat has arrived

While the media frenzy has been about Amazon’s lower avocado prices, if you’ve been to Whole Foods in the last 10 days you may have noticed that something much more notable occurred. In the very first round of changes to Whole Foods, Amazon lowered the price of two core meat items: ground beef and chicken… Read more »

Passive price taker or active price strategist – you choose

I get it. You’re selling in a commodity market which by definition makes you a price taker…right? Setting aside your willingness to accept the premise that your product is undifferentiated from your competitors (topic for another day), let’s look at the two pricing postures you could have when selling product in a commodity market: 1)   … Read more »

Will Amazon enter the meat industry? Spoiler alert: They already have.

Amazon’s swan dive into grocery will do more than transform food retail, it will transform the entire food value chain. Let’s look at the likely impacts specific to the meat sector. As Amazon brings its analytical horsepower and culture of fast charging innovation into food retail, other retail chains will be forced to build similar… Read more »

People need the bacon: 4 questions to consider in market uncertainty.

Even the laws of supply & demand agree that one of the stars of the meat industry (life?) is bacon. The price of pork bellies may have been rising for some time but according to the Wall Street Journal, in 2016 alone pork belly prices rose a whopping 80% while frozen inventories decreased 60%. The… Read more »

Whether You Call It Trading or Not, Your Company is Taking Market Positions

Introduction: Market Risk at Commodities-Driven Companies When an investor buys a stock, she is taking a position, placing a bet on the stock’s value going up so that she can sell it later for a profit. In commodities industries like food processing and mining, many executives see their companies solely as producers of commodity products… Read more »

Millennial Meat Preferences: What am I Supposed to do with a Chuck Roast?

Millennials, those born between 1981 and 1997, make up the largest living generation in the United States, numbering 74.4 million. Many readers in the meat industry will be surprised to learn that millennials are spending almost 75% more than baby boomers on meat (Midan Marketing, “Millennials, Boomers and Meat: A Closer Look). Despite this increased… Read more »

Humans or machines

Humans or machines: Which makes better business decisions? (Spoiler alert: both)   Within the past year, a series of unrelated technical glitches brought the New York Stock Exchange (NYSE) to a grinding halt for more than three hours, delayed hundreds of United Airlines flights and took down the Wall Street Journal’s home page. Experts agree the… Read more »