And it’s a big world… if you’re not finding the right choices (or customers) where you are, perhaps it’s time to look elsewhere.
By Joe Jarvis
The 1970s was the heyday for rural America according to a third generation hog farmer.
But as farms became more and more consolidated by Big Agriculture, profits dropped. The margins on food got smaller so it became harder to compete.
And by 2001, he went bankrupt.
Now he’s back on his feet because he is a raising a different kind of hog–a specialty kind that fetches twice the price.
And it’s actually comparatively easy for people to afford specialty food products these days. In 1960 Americans spent about 17% of their income on food. Now it is only 6.4%.
If consumers care to, they can spend twice as much as typical on better quality food, and still save money compared to 50 years ago.
Meanwhile, big brands like Nestle are spending less on innovation for new products. And start-up brands are taking larger shares of the market, especially for healthier foods with higher quality ingredients.
It’s anyone’s guess what factors came into play to create a stronger demand for healthy foods. But the point is that when the market showed a weak spot, entrepreneurs pounced.
Food is just one example… Read the rest of this entry »
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