The farming industry is on the verge of an upturn in fortunes as the changing retail landscape gives strength to producers.
That's according to IGD chief executive Joanne Denney-Finch, speaking at the annual NFU conference today (24 February).
That particular point of view came as the grocery think-tank’s boss gave her outlook for the future of the food retail sector.
Denney-Finch pointed to the rise of the discounters and farmers’ markets as evidence that “all market gaps are exposed and filled over time”, giving opportunity to entrepreneurs and those able to spot new niches.
She predicted that in the next five years, the amount of food bought in large supermarkets would fall from 70 per cent five years ago to 50 per cent by 2020. Discounters will grow, people will eat out more often and buy more convenience food, supermarkets will simplify ranges and reduce the number of back office operations, she predicted.
Supermarkets will also “take on more of a café feel” and lease out space to other retailers within their walls, Denney-Finch said.
Her other predictions included the further rise of Amazon as a grocery retailer, while technology stands to play an ever-bigger role.
“For farming the long-term outlook is very promising, but it won’t be a smooth journey,” she said. “You [farmers] should strengthen your partnerships too. Genuine partnerships are the future of the food chains.”
