linked in facebook twitter rss

  • Interbrand
  • Brandchannel

your chance!
your chance!
also of interest...
 
 
 
 

 

  The Corn Belt: Farmers All Ears to Branding?   The Corn Belt: Farmers All Ears to Branding?  Randall Frost  
         
 
The Corn Belt: Farmers All Ears to Branding? In Making the Corn Belt, Professor John Hudson of Northwestern University describes the Corn Belt as the heartland of America. Writes Hudson, “The middle is the average, the average is typical of the whole, yet the average is also found to contain the very best the nation can offer. Where in America would one expect to find a typical family farm, with barns and cows and chickens and fields of golden grain?” The answer, he says, is obvious.

But the reality is that farmers have left the Corn Belt in droves, placing the production of the nation’s grain supplies in the hands of fewer and fewer farm operators. Less than two percent of the American population lives on a farm today. Clearly new thinking about the future of the family farm in America is in order.

Corn-Belt Economics

The US Corn Belt stretches from the Rockies to the Appalachians. It takes in the states of Nebraska, Kansas, and Ohio and those in between, including parts of Missouri and Kentucky, and extends into the southern parts of the Dakotas, Minnesota, and Michigan. The grain produced in this region has been traditionally used as feed for hogs and cattle.

Corn from the US Corn Belt accounted for 70 percent of world corn exports in 2006. Furthermore—driven by US legislation requiring that the amount of corn-derived ethanol added to the nation’s motor vehicle supply double by 2012—the acreage of corn planted in the US reached a 63-year high in 2007. But with more US corn being diverted to ethanol production and away from food and feedstock for animals, global market dislocations have begun to show up.

 
The corn industry, indeed, is undergoing a transformation. The price of corn was up nearly 20 percent in 2006, and global sugar prices reached a 25-year high reflecting a shortage of high fructose corn syrup. Meanwhile, escalating international corn prices led to a tripling of the price of tortillas in Mexico in 2007, where the price of white corn used to make tortillas is indexed to that of yellow corn used to make ethanol. Corn is a big and growing business. But branding where corn came from isn't. At least, not yet.

Historical Precedents

In Making the Corn Belt, Professor Hudson acknowledged that nineteenth-century Midwestern farmers were no strangers to the notion of branding, even if they personally did not make use of it as a marketing strategy. He explained via email, “Corn Belt farmers [were] consumers of brands but by the very nature of the fact that they produced standardized commodities they [were] not inventors of brands. Occasionally an entrepreneur came up with a brand: Orville Redenbacher comes to mind. But the beef, pork, corn, soybeans, and other products of Corn Belt farms were sold to companies that did have their own brands."

Meanwhile Professor Emeritus John Ikerd of the University of Missouri says that the conventional wisdom in the US at the time was that agricultural commodities were not amenable to branding. “Raw agricultural commodities were fundamentally different from the specific food products into which they were eventually transformed. There was no effort to change this situation because competitive markets required that products be homogenous, rather than differentiated.”

Ikerd, who is the author of Crisis and Opportunity: Sustainability in American Agriculture, continues, “There was no effort to establish traceability in the American marketplace for agricultural products. In fact, an effort was made to do the exact opposite, to establish uniform national standards for agricultural products which would allow the co-mingling of products from different producers so the consumer didn't know, and didn't need to know, where it came from.”

Professor Joseph L. Anderson of the University of West Georgia elaborates, “Innovations such as the grain elevator meant that farm products from hundreds if not thousands of farms became co-mingled. The distinctions that mattered were those of the Chicago Board of Trade, Mercantile Exchange, and processors, which were the grade of the grain rather than point of origin.”

European Alternative

In Europe, meanwhile, there were long-standing traditions of branding farm products based on place of origin. The protection of geographical designations and regional identities there dates to the mid-1800s. Today, many farmer-owned agricultural brands in the EU enjoy a widely recognized and respected legal status.

An example is Prosciutto de Parma, a dry-cured ham produced in the Parma region of Italy, which has been producing dry-cured ham since at least the times of the Roman Empire. But besides ham, cheese, and other meat products, fruits, vegetables and cereals, fats and olive oils, mineral waters, beer, breads, and fish have also been regionally branded in Europe.

Ikerd explains, “Europeans have never fully embraced the commodity approach to agriculture. Differences in product characteristics can be traced specifically to the soil, climate, and culture within which the agricultural products were produced. The products produced by one farmer, or by a small group of farmers in one geographic region, have characteristics that make them distinctly different from the products of another farmer, or group of farmers, in the minds of the consumers.” By contrast, he says, “The average American consumer doesn't know or care whether their meat or grain products originate in the Midwest, the South, the West, or in some other country of the world—as long as they are safe to eat and cheap.”

 
Brand Potential

Ikerd says some American farmers are beginning to realize that while pure competition may be good for consumers, at least in terms of pure economic efficiency, it is not good for the profitability of producers. He believes that farmers will increasingly try to find ways to differentiate their products and gain monopolies in specific niches of the food market, thereby increasing their abilities to retain profits. Coffee beans are now identified according to their region of origin, so are grapes used to make wine. Could corn and other agricultural staples of the US Midwest follow?

Anderson, meanwhile, points to an issue that has entered the identity-preserved products discussion. Though it's one thing to compare corn or soybeans cultivated in Georgia with those grown in Iowan soil, it is a different conversation when one compares products raised naturally on farms to those that can be traced to the rise of genetically modified organisms (GMOs). The rise of GMOs has sparked dialogue on a host of issues from environmental to health concerns. Anderson explains, “There is some evidence that a small portion of the human population will present allergic symptoms after consuming [these] products. Some consumers or buyers are willing to pay premiums for non-GMO's. For example, Japan wants non-GMO soybeans for tofu.”

The need for branded farms seems to be ahead of the Corn Belt's ability to differentiate its regions, farmers, and resources. Anderson cites California-based Niman Ranch as an example of branded products in the Midwest: “Niman found pork producers who were willing to eschew some of the modern production techniques in exchange for higher prices,” he told us.

Professor Sergio Lence of Iowa State University believes that the commodification of US meat and dairy products in the latter part of the twentieth century eliminated thousands of regional production practices. He feels this creates an opportunity for farmers to concentrate on bringing back those regional products that evoke memories of an earlier era. This may mean a new era for the US Corn Belt, where agriculture and branding intersect like never before.    

[21-Jan-2008]

 
  
  

Randall Frost is a freelance writer based in Pleasanton, California. He is the author of The Globalization of Trade. His work has appeared in Worth, The New England Financial Journal, CBSHealthWatch, and a variety of educational publications.

     
 commenting closed Add Social Bookmark bookmark  print
 suggest topic  recommend ( 187 )  email

The Corn Belt: Farmers All Ears to Branding?
 
 I personally would suggest the push for branding corn and other agricultural products, as it would give the consumers more opportunity to choose according to the way a farm produces their products. 
Lydia Romero, Executive Administrator, Common Sense R-US - January 21, 2008
 
 Branding agricultural products is a great idea. It is something "Florida Oranges" and "California Cheese" have already accomplished and must be seeing some benefit from it as they continue with thier branding strategy. Why shouldn't branding corn or any other type of produce to consumers not work? 
KM - January 23, 2008
 
  brandchannel home archive   2013  |  2012  |  2011  |  2010  |  2009  | 2008  |  2007  |  2006  |  2005  |  2004  |  2003  |  2002  |  2001
 
 
Dec 22, 2008 Brand Darwinism: When & Why Brands Falter & Die
  Where brands go when they die.
   
 
Dec 15, 2008 M.H. Alshaya Co.: Paving the Way in Emerging Markets -- Mya Frazier
  Alshaya offers brands direction in the Middle East.
   
 
Dec 8, 2008 Branding by the Nose in Brazil -- Ana Paula Palombo Terzi
  Brazilian brands take a nose dive.
   
 
Dec 1, 2008 Wines: Is ''Made in France'' Enough? -- Joe Ray
  French wine brands pour on uniqueness.
   
 
Nov 24, 2008 German Engineering Drives Global Brand Success -- Barry Silverstein
  How German brands deliver discipline and quality.
   
 
Nov 17, 2008 The Squeeze on Ketchup -- Jennifer Gidman
  Will other brands ketchup with Heinz?
   
 
Nov 10, 2008 Abu Dhabi: A City Rich in Branding -- Mya Frazier
  The brand strategy behind the world's richest city.
   
 
Nov 3, 2008 Church Brands See the Light of Branding -- Kimberly Maul
  Church Brands Sing the Praises of Differentiation
   
 
Oct 27, 2008 Brands in a League of Their Own -- Barry Silverstein
  Ivy League Schools Teach Brand Awareness
   
 
Oct 20, 2008 A New Packaged Milk Brand Flows into Pakistan -- Umair Naeem
  Are Pakistani Consumers Milking the Competition?
   
 
Oct 13, 2008 Gay Consumers in the Market for Respect -- Mya Frazier
  Brands that stereotype the gay demographic reap shallow results.
   
 
Oct 6, 2008 Rating Nation Brands: What Really Counts? -- Randall Frost
  Determine the true hierarchy of nation brands.
   
 
Sep 29, 2008 Value Store Brands: High-end Taste for Low Spenders -- Barry Silverstein
  Do consumers like to get dressed up when times are down?
   
 
Sep 22, 2008 Best Global Brands: Lessons Learned -- Jim Thompson
  Meet the top 100 in Interbrand's 2008 Best Global Brands report.
   
 
Sep 15, 2008 Do Hockey and Soccer Mom Brands Share Goals? -- Abram Sauer
  The sport of branding hockey and soccer moms.
   
 
Sep 8, 2008 Coffee Brands: Wake Up and Smell the Morality -- Mya Frazier
  Are green coffee brands saving the planet or themselves?
   
 
Sep 1, 2008 Family-owned Brands: A Sustainable Legacy? -- Randall Frost
  Successful brands' beginnings are all in the family.
   
 
Aug 25, 2008 More Than a Name: Japanese Super-brands Diversify -- Barry Silverstein
  Do Japanese super-brands overextend themselves?
   
 
Aug 18, 2008 2008 brandcameo's Product Placement Awards -- Abram Sauer
  The best and worst of product placement in films this year.
   
 
Aug 11, 2008 Emerging Nations Cultivate Agricultural Brands -- Randall Frost
  Are farm products from emerging nations growing on consumers?
   
 
Aug 4, 2008 India Turns Up the Volume on Sonic Branding -- Preeti Khicha
  Why sonic branding speaks to Indian consumers.
   
 
Jul 28, 2008 Preview to the 2008 brandcameo Product Placement Awards -- Abram Sauer
  Keeping track of brands on the big screen.
   
 
Jul 21, 2008 Why the Climate is Ripe for Chilean Wine Brands -- Joe Ray
  Chilean wines uncork robust branding strategies.
   
 
Jul 14, 2008 Toy Brands Don’t Play Around in Virtual Worlds -- Alycia de Mesa
  Why toy companies want to kid with avatars.
   
 
Jul 7, 2008 Pets: Part of the Brand Family -- Barry Silverstein
  Why upscale pet brands are getting a leg up
   
 
Jun 30, 2008 High Interest in Branding Credit Cards -- Jennifer Gidman
  Do these brands represent your spending values?
   
 
Jun 23, 2008 New England's Thoreau-ly Inspired Brands -- Randall Frost
  New England brands with transcendental roots.
   
 
Jun 16, 2008 Mobile Brands Connect with Pakistan -- Umair Naeem
  Cellular services companies come calling in Pakistan
   
 
Jun 9, 2008 The Deal with Online Travel Brands -- Jennifer Gidman
  Reaching destinations begins with an online journey
   
 
Jun 2, 2008 A Healthy Supply of Green -- Vivian Manning-Schaffel
  How to go green and mean it.
   
 
May 26, 2008 US Beef: Well Done Branding? -- Randall Frost
  The US cattle industry beefs up branding efforts
   
 
May 19, 2008 Will China's Brand Medal in the Olympics? -- Melissa Davis
  Does China's brand have a sporting chance?
   
 
May 12, 2008 Older and Wiser: How Brands Stand the Test of Time -- Barry Silverstein
  On the battlefield of branding, only the bad die young
   
 
May 5, 2008 Celebrity Chefs: Brands that Cook in the Kitchen -- Barry Silverstein
  Chefs bake their own brands.
   
 
Apr 28, 2008 Grading Green: The Watchdogs CMOs Must Appease -- Mya Frazier
  A new sheen to evaluating green.
   
 
Apr 21, 2008 The Caribbean's Rum-Soaked Brand -- Randall Frost
  Branding the Caribbean is no vacation.
   
 
Apr 14, 2008 Bowling for Cricket Brands -- Preeti Chaturvedi
  Branding Cricket a High Stakes Game
   
 
Apr 7, 2008 A Concentrated Dose of the Brandjunkie Results -- Jim Thompson
  The results from our end.
   
 
Mar 31, 2008 Brandjunkies on the Influence of Brands:
The 2008 Brandjunkie Survey Results -- Jim Thompson
  Brandjunkies speak their minds!
   
 
Mar 24, 2008 Brand Progression in a Recession -- Barry Silverstein
  Brands must be themselves to survive.
   
 
Mar 17, 2008 French Luxury Brands, A Modern Day Classic -- Chauncey Zalkin
  Luxury brands in an uncomfortable position.
   
 
Mar 10, 2008 UK Brands Skip Across the Pond -- Kimberly Maul
  British brands cross the pond and cultures.
   
 
Mar 3, 2008 Consumers Go Ga-Ga Over Organic -- Barry Silverstein
  Why organic baby food is a natural fit with parents
   
 
Feb 18, 2008 Brand Wonder Down Under -- Jennifer Gidman
  Why down under is looking up.
   
 
Feb 11, 2008 Customized Branding: Consumers Get Creative Control -- Barry Silverstein
  Branding gets personal with consumer input.
   
 
Feb 4, 2008 Greenwashing: A Dirty Job? -- Wendy Jedlicka
  Will greenwashing ever come clean?
   
 
Jan 28, 2008 Brands Line Up for Super Bowl XLII -- Barry Silverstein
  Brands see themselves in the Super Bowl.
   
 
Jan 14, 2008 Dunkin Donuts: An International Brand for Average Joes -- Vivian Manning-Schaffel
  Dunkin' Donuts wants those on the go to stick around
   
 
Jan 7, 2008 TCIG: The Pride of Brand Ownership -- Renée Alexander
  Can local cultures brand their way to international success?