Consumer perspectives of adaptationPreliminary results
Lilly Lim-Camacho, Anoma Ariyawardana, Steve Crimp, Simon Somogyi, and Gemma Lewis
31 July 2014
A multidisciplinary approach
Research questions
• How are value chains impacted by climate change and climate variability?
• How can value chains effectively respond through adaptation and mitigation strategies?
• What are the impacts of such responses to value creation and competitive advantages in value chains?
Project team expertise Project team expertise
• Value chain management and analysis
• Climate adaptation in agriculture
• LCA, carbon and water footprinting
• Consumer and marketing strategies for agribusiness
• Financial and investment strategies for agribusiness
...supported by an advisory group representing industry, science and policy.
Consumer perspectives of adaptation| Lilly Lim-Camacho2 |
The concept of chains
Information flow
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Value contribution
Share of consumer value = Profit
What is the role of food consumers in adaptation?
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Photo credits: News.com.au, cairns.com.au, bellamiemotherofthree.com, daff.qld.gov.au
Horticulture Australia Limited, 2011. Banana Industry Annual Report 2011. http://www.horticulture.com.au ,21 May 2013
Cluster analysis results
Consumer perspectives of adaptation| Lilly Lim-Camacho5 |
What are the important issues?
6%
9%
7%
8%
11%
8%
9%
4%
10%
7%
9%
8%
10%
9%
4%
8%
7%
9%
8%
13%
13%
4%
7%
6%
10%
8%
17%
17%
5%
6%
7%
7%
8%
21%
24%
Climate change
Crime and justice
Maintaining our way of life
Employment
Economic stability
Health
The cost of living
10%
13%
10%
15%
11%
12%
14%
12%
17%
11%
12%
13%
14%
15%
17%
Extreme weather events
Water shortages
Water quality
Pollution
Climate change
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2%
4%
4%
6%
5%
7%
6%
8%
3%
7%
7%
10%
3%
8%
5%
10%
2%
6%
5%
7%
1%
1%
2%
3%
3%
3%
4%
5%
Connectedness of our communities
Food security
Immigration
Water
Government and politics
The quality of our food
The natural environment
Education
7%
11%
14%
9%
10%
7%
9%
9%
9%
12%
5%
6%
7%
10%
12%
Salinity
Deforestation
Accumulation and disposal of household
waste
Drought
Extreme weather events
Based on their attitudes to climate change, consumers can be
generally grouped into five clusters
Sceptics8%
24%
32%
Climate change is a
natural fluctuation
50%
Climate change isn’t
happening
Abdicators16%
42%
13%
Unsure whether climate
change is happening
66%
Climate change is a
natural fluctuation
Eco-
friendlies30%Undecided31%
54%
22%
Climate change is a
natural fluctuation
72%
Climate change is largely
caused by humans.
53%
34%
Climate change is largely
caused by humans.
52%
Climate change is a
natural fluctuation
Eco-
warriors 14%
60%
89%
Climate change is largely
caused by humans.
76%
24%
3% 3%18%24%24%28%
Age
“ I have installed solar panels and have water
tanks, but this is to save money and NOT for
climate change.”
58%
42%
6%14% 16% 20% 17%
28%
Age
“We generally have a healthy and
environmentally-friendly household regardless of
climate change.”
46%
54%
19%18%20%16%13%14%
Age
“I buy Australian made wherever possible, I have change to green cleaning products and grown my own fruit and vegetables to reduce my impact on
the supply chain.”
47%
53%
12%22%24%
16%13%14%
Age
“We have a recycling bin and use those ‘green’
shopping bags.”
40%
60%
17%20%16%19%15%12%
Age
“I became a vegan due to climate change. We don’t
turn on light at night time, we educate our children about how to be resilient, we buy second hand, ferment our
own probiotics and are saving up for a small wind
turbine to generate electricity.”
Consumers think that the ‘big players’ should take responsibility
for adapting to the impacts of climate change
8%
6%
7%
5%
5%
5%
20%
14%
16%
14%
12%
10%
3%
39%
40%
39%
39%
36%
29%
14%
22%
27%
25%
27%
32%
33%
23%
10%
12%
13%
14%
16%
24%
58%
Storage companies
Wholesalers
Retailers
Transport companies
Processing or manufacturing companies
Raw material suppliers
Farmer
Who is vulnerable?
4%5%
5%
5%
5%
5%
3%
25%
22%
23%
20%
19%
13%
32%
35%
31%
31%
30%
23%
34%
34%
37%
41%
43%
55%
Global organisations (e.g.
State governments
Wealthy countries
The Federal government
Multi-national corporations
Big polluting countries
Who is responsible for adapting?
1 Not at all vulnerable 2 3 4 5 Extremely vulnerable
4%
6%
4%
4%
3%
4%
11%
11%
8%
6%
7%
5%
37%
32%
29%
27%
28%
25%
33%
34%
35%
37%
34%
32%
15%
18%
25%
26%
28%
34%
Small and medium scale
businesses
Farmers
Individuals
Food manufacturers
Local governments
Global organisations (e.g.
the United Nations)
1 Not responsible at all 2 3 4 5 Highly responsible
Consumer perspectives of adaptation| Lilly Lim-Camacho8 |
Consumers are starting to consider what they can do to adapt...
... in their own way
Increasingly more concerned about the increase in
food prices70%
Look for things to address and change in everyday
life as a result of the challenges of climate change54% life as a result of the challenges of climate change54%
Think about what is acceptable and sustainable
with respect to products, packaging and
consumption54%
Consumer perspectives of adaptation| Lilly Lim-Camacho9 |
Wine consumer survey results
Consumer perspectives of adaptation| Lilly Lim-Camacho10 |
59%
What type of wine consumers do we have?
Consume at least 2-3
times a week63% Purchase through bottleshops
+ 16% via ‘supermarkets’
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5.1No. of bottles per
purchase by 50% $15Price willing to pay for the
usual bottle of wine, BUT
expect to pay only $14
Adaptation scenarios for wine
Scenario: Favourite Sauvignon Blanc
temperature affected
0
10
20
30
40
50
60
70
80
90
100
Scenario: Award-winning Margaret
River to Stanthorpe
0
10
20
30
40
50
60
70
80
90
100
Most likely to purchase Sav
Blanc from another region30%Most likely to substitute
another variety of wine24%
Cumulative Too Expensive (inclusive)
Cumulative Too Cheap (inclusive)
Most open to continuing
to purchase Sav Blanc
from the Adelaide HillsEW
Most likely to continue
purchasing
Most likely to purchase a
different type of wine instead
Cumulative Too Expensive (inclusive)
Cumulative Too Cheap (inclusive)
56%21%
Price premium – likely
because it is award winning$1.30
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Implications for the wine industry
Will your key growth markets support adaptation?
What opportunities does adaptation present? What opportunities does adaptation present?
What are the implications for your value chain?
Consumer perspectives of adaptation| Lilly Lim-Camacho13 |
Thank youLilly Lim-CamachoAdaptive value chain approaches
t +61 7 3327 4730e [email protected] www.csiro.au
Thank you
Consumer perspectives of adaptation| Lilly Lim-Camacho14 |
LAND AND WATER FLAGSHIP