Synthesis Agri-Food Insights
August 25, 2009     Volume 1, Issue 3

Helping you understand agriculture's challenges and opportunities by analyzing the issues and sharing their insights -  the Synthesis consulting team Rob Hannam, Mary Lou McCutcheon, Julien DenTandt, Peter Hannam and Heidi Dancho.
Agriculture and the Internet
A recent survey on internet use by Canadian farmers showed some surprising results - but don't close the door on your more traditional marketing and communications methods just yet.
 
According to the study, carried out by Ipsos Forward Research and presented at a recent meeting of the Canadian Agri-Marketing Association, 73 per cent of commercial producers in the Prairies, Ontario and Quebec are on-line vs. 85% of general consumers. Almost 70 per cent of farmers that are on-line have high speed internet. And 73 per cent of on-line producers make regular visits to agricultural websites.
 
Farmers also have a strong comfort level with using email. Ninety three per cent of on-line respondents use email at least once a week, and the vast majority uses it daily. Seventy seven per cent use email for communications with companies and more than 70 per cent of respondents indicated that that they have registered at a website to receive regular information and updates.
 
This internet usage data is encouraging but also points to some underlying difficulties facing farmers, says Rob Hannam, President of Guelph-based Synthesis Agri-Food Consulting.
 
Uptake on other forms of online activity - like blogs, videos, podcasts and social networks that are more dependent on reliable high speed internet access - is less widespread. Just over half of respondents (54 per cent) have read a blog or watch videos online. Only 32 per cent have participated in social networking and only one quarter has used a podcast.
 
"There are still many areas of the country where a lack of reliable rural broadband infrastructure makes it impossible for farmers to easily access the internet," says Hannam. "So although these usage numbers are very positive, we are still in a state of transition when it comes to offering online services and electronic communications". 
 
He draws a comparison to the way consumers have eased into switching to other new technologies, such as the way they watch movies.
 
"As we were shifting from using VHS video tapes to DVDs, companies moved from offering only VCRs to producing players that could accommodate both VHS tapes and DVDs and eventually, they switched to the DVD format entirely," he says, adding that this is where both the challenges and opportunities lie for agriculture.
 
Insights - So what does this all mean?

It's the way of the future: Electronic communications lets you reach your audience more directly and in a more targeted way than ever before. It's also much less expensive than more traditional communications methods, like printing or advertising.

But there are still gaps:  Not all Canadians - especially those in rural areas - have access to reliable high speed internet access. Although some farmers are very at ease with the online world, many are not as comfortable using the Internet, relying instead on print media, radio and word of mouth for information gathering.

Maintaining a dual system: You may alienate your customers if you switch entirely to online services before they are ready to make that leap with you. But if you stay away from e-services altogether, you are taking a similar risk. Some of your customers or your audiences are already way ahead of you on the digital learning curve. Keep up with the leaders, but don't focus your offerings solely on a single technology or method yet.

Offering training and support: Make the transition into the online world an easy and comfortable experience. As a business, know your audiences before you invest heavily in online solutions. Look at the prevalent technology levels and analyze gaps so you can properly meet their needs. If your customers are not entirely comfortable using the technology, provide training and easy access to help.

Sincerely,
 
Rob, Mary Lou, Peter, Julien and Heidi
Synthesis Agri-Food Consulting

"Our Passion is Problem Solving"
In this issue
Agriculture and the Internet
Other study highlights

88% of respondents aged 18-44 had an on-line presence.

85% of respondents aged 43-54 had an on-line presence.

79% have engaged in email dialogue with a company representative.

39% of all online producers have entered a contest online.

29% sometimes respond to online advertising.

15% of all online producers have forwarded an advertiser's message to others.

Source: 2008 E-Business in Agriculture Survey, Ipsos Forward Research


Links

Synthesis Agri-Food Consulting