World Crops Panel: Consumer Research and Market Rationale

Dr. Alex Grygorczyk

Alexandra.grygorczyk@vinelandresearch.com

Consumer demographics are changing

• In the GTA, the visible minority will be the majority by 2017 (55%)

• $5 billion retail opportunity

0

10

20

30

40

50

60

70

Toronto Canada

2006

2017

2031

Source: Statistics Canada

Consumer demographics are changing

Image from: Nielsen Canada

Consumer demographics are changing

• Immigration is changing the face of Canada

A new opportunity!

• Immigration is estimated to drive >70% of the growth in “fresh produce” retail

• People eat what they know

What can we grow?

Crops tested in Vineland Program

• >700 varieties evaluated

• Okra, callaloo, yard long bean, long eggplant, round eggplant, bottle gourd, Chinese and Thai hot chilli peppers, Chinese green onions, fuzzy melon, Indian red carrot, daikon radish and others

• All are adapted to production in Ontario

What should we grow? (Is there a market?)

Greatest market opportunity:

okra, long eggplant, round eggplant

Eggplant Supply and Consumption

Estimated returns to the grower: (U.S. Study from the University of Kentucky)

Okra

1,404 USD/acre

Eggplant

1,636 USD/acre

Return is greater than for field cucumber, potato, sweet corn or watermelon

We are in the process of assessing the situation in Canada. Data analysis is in progress.

Will people buy it? (Do they like it?)

Drivers of Purchase (Vineland Fall 2011 Online Survey)

Consumers of different ethnic heritage have different preferences

Region of Origin: o Home country bias: produce from my home country are more desirable,

have higher quality!

o True for Afro-Caribbean heritage and to a lesser extent for South Asians

o Less applicable to Chinese consumers

o “Product of Ontario” resonates positively with all groups

o “Product of China” resonates negatively with all groups

Visual Preference (Vineland Summer 2012 Study)

Locally grown okra, long and round eggplants were liked equally or preferred over imported varieties when compared by visual evaluation

Visual Insights

Consumers do not pay attention to the variety names of these vegetables

• Size

• Shape

• Colour variation

Visual Insights Okra characteristics desired by consumers

(according to distributors, breeders, etc.) • Spineless

• Soft (not fibrous)

• Short

• Dark Green

• Grooved

Need confirmation from consumer study

data analysis in progress

Taste Preference

• Cooked okra, long and round eggplants with minimal seasoning as well as with traditional spices

• Do consumers have a taste preference for local or imported cooked okra/eggplant?

Taste Preference

Generally no taste preference between local and imported

Locally produced okra and eggplant are performing equally as well as imported varieties

Summary

• Ethnic demographics are driving a great deal of change in the produce business.

• BIG opportunity!

• Ethnic crops can be grown successfully in Ontario

• Largest opportunity is with okra and eggplant

• Profitability in Canada still being assessed

• Sensory performance is similar to those of imported vegetables

• Locally grown have improved freshness

Sensory Science Team

Consumer Science-Economics Team

Postharvest Science Team

Production Team

Contacts

Production Systems: Dr. Michael Brownbridge michael.brownbridge@ vinelandresearch.com 905-562-0320 ext. 798 Business Development: Lana Culley lana.culley@ vinelandresearch.com 905-562-0320 ext. 747

Sensory and Consumer Research: Dr. Amy Bowen amy.bowen@ vinelandresearch.com 905-562-0320 ext. 805 Dr. Alexandra Grygorczyk Alexandra.grygorczyk@ vinelandresearch.com 905-562-0320 ext. 672

www.vinelandresearch.com