General Saline crop cultivation waddenzee region: collecting market data to scale up the supply chain
Experts and Professionals working on research projects around Saline agriculture indicated a pressing need for research on how to scale up the supply chain of saline crops, and on how to increase profitability. The researcher spoke with experts and professionals, and did an extensive literature review, to finally settle on what the researcher believed to be the most suitable research direction, one that was both valuable to the stakeholders involved, and that could be realized by the researcher. This research has focused on the Waddenzee region to offer a contribution to companies and individuals active in saline agriculture, and to research projects like Zeker Zilt and SALAD.
There are two main problems that need to be solved to achieve upscaling and profitability. The first is that yields of crops grown on saline land need to be improved. The second is that the supply chain surplus needs to be improved, which means increased revenue generated from the customers, and optimizing the costs when producing and delivering the product. This research has focused on how to increase revenue from the customers.
Problem definition: The companies within the supply chain of saline agriculture in the Waddenzee region* need to increase revenue and profits from crops grown on saline land and their processed products. Added profit needs to be fairly distributed among all companies in the supply chain, including the farms, to make upscaling possible.
The most suitable strategy for the saline agricultural industry has to be created, strategies that allow for increases in revenue and profits. A good understanding of the market and which customer segments should be served is first needed to create such an optimized competitive strategy and supply chain strategy. The main objective of this research report is to collect some of the required market data to find out how the supply chain of crops grown sustainably* on saline land in the Waddenzee region* can best increase the revenue and profit from consumers, restaurants, retail markets, food processors, catering, wholesale buyers and importers, and farm cooperatives and distributors.
One of the gaps that was identified in the market data led to the main research question: What is the potential to increase revenue and profit for crops grown sustainably* on saline land in the Waddenzee region* from the restaurants/Eatery’s customer segment?
To answer the research questions, market data needed to be collected, both primary and secondary. Methods were chosen and instruments were created using a mixed-method approach. The first method used was semi-structured interviews with experts and professionals. The findings of the semi-structured interviews combined with the literature review made it clear what research was needed, and that the competitive strategy needed to focus on differentiation and adding value to attain increased prices.
This information was used for the second, and main research method, which was a survey using a questionnaire for decision makers in restaurants. The questionnaire can be found in Appendix B, and C, and have been translated to English in the results. They were tested on their current awareness of saline agriculture and certificates, their use and promotion of certificates and consideration when buying ingredients, how much they were willing to pay pre and post messaging, and the effectiveness of differentiation messaging focusing on taste, regional production, good causes, and sustainability. Information was also gathered for follow-up research.
A sample of 50 was achieved for the survey, all of them decision-makers in restaurants in Friesland, Groningen, and Noord Holland. All in the sample served ingredients of which variants are also grown on saline soil like carrots and potatoes. A low awareness was found of saline agriculture, with a mean of 3.70 out of 10. Only 48% of the respondents were aware of the Waddengoud certificate.
At least 70% of the respondents did not promote with certificates inside or outside of the restaurant/eatery in any capacity. Although those that were aware of Waddengoud were more likely to advertise with such certificates.
Respondents were also tested on how much they were willing to pay for ingredients from saline soil, both pre, and post messaging. Pre-messaging, 90% were willing to pay the same or more, with 32% indicating that they were willing to pay more. After an introductory text to saline agriculture and four positive messages 54% of respondents were willing to pay more for saline ingredients.
Four positive messages focusing on the differentiating concepts of regional production, sustainability, good causes, and taste were tested with the restaurant decision-makers. They scored these messages from 1 to 10 on how much interest the messages generated to use saline ingredients for their restaurants. The mean score was 6.38 for Local production, 6.48 for sustainability, 6.78 for Taste, and 6.82 for good causes. Whether these messages validly tested the concepts is difficult to determine.
Testing the differentiators was also done directly without messaging. 17 respondents selected Sustainability (34%), 16 respondents chose local production (32%) and 16 respondents chose delicious taste (32%). Supporting good causes was only selected a single time (2%).
The biggest considerations when buying ingredients were quality (6), price (6), local ingredients (3), availability (2), and delivery (2). Buying those ingredients is mostly done through wholesalers like Hanos. Using the systems of those wholesalers to order.
Nine out of the fifty respondents provided their contact information for future research involvement, allowing for more in-depth questioning and other market research. It is a great opportunity for follow-up research on this customer segment.
There was clear potential with the tested customer segment of restaurant decision-makers, with interest in saline ingredients both before and after messaging, and an opportunity for modest increases in prices. Targeting this customer segment is advised, but more research is recommended.
To scale up the saline agricultural industry, new entrants are needed, for which clear demand from customers, and potential for profitability will be valuable. Increased awareness and adding value to saline crops can help increase the needed supply chain pull. It will be a challenge to make sure that some of the increased supply chain surplus ends up with the farmers. The costs of value addition should not exceed the additional revenue generated.
Many of the recommendations made for scaling up the supply chain in the Waddenzee region are also very applicable to international markets.
They also need to create an effective sustainable business model for increased profitability and higher revenue. They need to follow the same steps as shown in the conceptual model. And they too should first understand the business environment. Creating branding that incorporates local certificates and the most effective differentiators could increase sales within their own region, and even sales to foreign markets.
The potential for entrepreneurship is enormous in the saline agricultural industry. So much knowledge is quickly becoming available, and the industry awaits individuals and organizations that are willing to seize those opportunities for profitable business ventures.
Exciting times are ahead for Experts and business professionals with both the knowledge and talents to enter this quickly growing industry.