Download Potential markets for high-Se foods

Marketing Issues for High-Selenium
Products
There are more questions than answers….
Cheryl Wachenheim
Agribusiness and Applied Economics
North Dakota State University
We need to decide….
What is our product?
Type (wheat, beef)
 Point in marketing channel (wheat, bread)

How is the high-selenium feature of our
product specified?
Guaranteed level of selenium
 Identity-preserved product

About the marketing channel
Developing a market for a new functional food is likely to
be high cost and of substantial risk
Few are currently interested so you are starting from
scratch
There are substantial barriers to entry
 research, product development, marketing
 FDA approval for health claims
 the marketing channel needs educating
About the marketing channel
Partnerships seem a reasonable alternative
Who is well-positioned for partnership?
 What will define the partnership?
 Can that / those partnership(s) be developed
now?

Wheat Marketing Channel
Selenium is currently not a preferred wheat
characteristic (opportunity cost idea)
Issues
Defining your product and consumer
Testing
Storage
Transportation
Blending
Wheat Marketing Channel
SJH & Company, Inc. recommended the
following steps
Implement identity preservation of selenium wheat
Obtain FDA health claim approval
Develop a brand concept
Develop a marketing strategy
Develop a business plan
Find a sound business partner
Beef Marketing Channel
There is some evidence that selenium is
taken up in meat relatively uniformly and
linearly with available selenium; and that
organic sources are more available.
There is not enough evidence.
Beef Marketing Channel
The issues are very similar
Defining your product and consumer
Testing
Blending
There are considerable ties to current issues
How to certify? COOL /GM
Targeting
Issues – Information needs
Chicken or the egg?
Production data will be essential
Selenium levels in products as function of
selenium level in soils, et al.
 Variability in selenium in soils and selenium
uptake by product [what we have; what the
market will accommodate]
 Are there particular species or type(s) of
animals, or varieties of grains that result in
more bio-available selenium?

Issues – Information needs
Testing
Cost
 Need (number of tests, point of testing)
 Accuracy

Labeling (what are the rules? what will the
market accommodate?)
Market research needs
Will be product specific
Value of high-selenium attribute (including
stacked with other traits)
Value of natural source of selenium
Effectiveness within existing marketing channels,
of marketing and promotion strategies
Push versus pull marketing strategies
Products of particular interest and with particular
economic promise.
According to SJH & Company, Inc.
Key success factors (selected and paraphrased)
Avoid focus on prevention of specific disease promotion
and rather focus on overall health / well - being
Use an extensive marketing campaign to communicate
/ educate your market
Rely on science, but do so simply
Work on FDA approval for health claim
Secure broad and dependable channels for product
placement / distribution
Take home messages
We need to change the way we do business, but models
exist for us to follow.
This is a high cost / high risk venture. Share the cost / risk.
There is money available -- use it
Incorporate educating the marketing channel
Keep an eye on competition from outside and within the
marketing channel