Delaying Commoditization of Plant Proteins
One of the leading hurdles in maintaining and growing an agri-food business is that farmers and processors are inherently limited in their ability to differentiate food items purchased by the consumer. If someone presented you with two glasses of milk from completely different farms your ability to separate the two by taste, smell, or visual perceptions is generally quite limited. When producers sell homogeneous products like fluid milk, corn, or soybeans these products become categorized as commodities where market shifts affect all sellers irrespective of farm level operations. For this reason, producers of commodity goods must accept downstream prices which often offer extremely tight or “non-existent” margins. Therefore, the incentive to differentiate or de-commoditize products to...
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