Farming industry needs to adapt to implement service changes; new technology needs to be purchased to cater for new consumer desires; farm finance solutions available to preserve and grow sector
THE Farming industry has been warned by a comprehensive sector report to change how it packages products, engages with consumers and delivers produce.
Research by Mintel revealed haemorrhaged consumer trust and the desire for increased transparency concerning the traceability of products, their origins and the manner in which they are reared.
More information ensures a change in how products are labelled, with additional interfaces needed for greater digital calibration to support a new EU regulation and consumer desires.
Products farmed need to be changed, too, to cater for shifting demands, with new products that cater to the ‘flexitarian’ and completely vegetarian or vegan diet crucial to future success.
What changes do I need to make to my farming processes?
In terms of changes, a digital interface will be needed for consumers to engage with content via smart phones while shopping in-store; legally required new labels will be compulsory for any farming entity looking to export products within the EU, or partner that exports within it.
New assembly lines will be needed to facilitate the mass production of the aforementioned products, which have enjoyed remarkable success during their first periods of trading at a UK Tesco store.
With the ability to enjoy convenience omni-sector, consumers have been left frustrated by the lack of progress, therefore implementing QR codes to cater for the impatient and curious consumer, while also delivering a new product range, will require investment in both hard and soft assets.
Uncertainty persists amid the impasse that has prevailed during the UK Government and the EU’s negotiations regarding their future relationship, but investment is imperative regardless.
Whether the UK continues some form of customs alignment with the EU or not, employees will still be needed to create an improved customer experience.
Single market membership looks set to end after 29 March 2019, but according to Mintel’s research, more staff will be needed to engage consumers with the farming sector.
The cost of delivering these changes is falling
The Adam Smith Institute revealed that the cost of producing meat-free steaks fell to just £8.
The price has fallen from £192,000 in just five years, with development leading to this seminal moment for the farming sector.
Farm finance and its prospects has been open to much conjecture since the Brexit vote, but whether profits fall or increase in the short term, a proactive approach to packaging, labelling and products farmed needs to be adopted.
You would think, in terms of introducing a new packaging and labelling system, the cost would be high and affect working capital – inhibiting cash flow and profits.
But no, farm finance solutions exist to support the UK industry introduce these changes as quickly as possible.
The supply has been generated by the Dutch farming industry for plant-based foods; the UK farming sector needs to react and asset finance companies exist to actually improve the financial outlook of all businesses during this time of transition.
EU MDR Regulation has given the agricultural community the perfect reason to asset finance more uniformed, transparent labelling mechanisms.
The time is right to invest in farming equipment and software
Financial incentives concerning tax and lack of upfront payments for new manufacturing equipment, recruiting software, or facilities to cater for more consumer engagement illustrates the comfort asset finance provides is unrivalled.
Head of Marketing at Portman Asset Finance Mark Kozo reiterated the ease in which the farming sector can be supported during this period. He said: “The farming sector may need to undergo great changes, but from a financial perspective, there shouldn’t be any concerns.
“Farm asset finance is the most cost-effective means of investing in new manufacturing tools, farming equipment and printing software to cater for these necessary changes.
“Interest rates on the lease, hire purchase, or refinancing of these products starts at 2.5 per cent, and with tax liabilities reduced by 19 per cent, you can actually save money while financing any soft or hard asset.”