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?

Consumer perspectives of adaptation| Lilly Lim-Camacho4 |

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’

Consumer perspectives of adaptation| Lilly Lim-Camacho11 |

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

Consumer perspectives of adaptation| Lilly Lim-Camacho12 |

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 lilly.lim-camacho@csiro.auW www.csiro.au

Thank you

Consumer perspectives of adaptation| Lilly Lim-Camacho14 |

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