Marketing Issues for High-Selenium Products

1. Marketing Issues for High-Selenium Products There are more questions than answers…. Cheryl Wachenheim Agribusiness and Applied Economics North Dakota State University

2. We need to decide…. • What is our product? • Type (wheat, beef) • Point in marketing channel (wheat, bread) • How is the high-selenium feature of our product specified? • Guaranteed level of selenium • Identity-preserved product

3. About the marketing channel Developing a market for a new functional food is likely to be high cost and of substantial risk Few are currently interested so you are starting from scratch There are substantial barriers to entry • research, product development, marketing • FDA approval for health claims • the marketing channel needs educating

4. About the marketing channel Partnerships seem a reasonable alternative • Who is well-positioned for partnership? • What will define the partnership? • Can that / those partnership(s) be developed now?

5. Wheat Marketing Channel Selenium is currently not a preferred wheat characteristic (opportunity cost idea) Issues • Defining your product and consumer • Testing • Storage • Transportation • Blending

6. Wheat Marketing Channel SJH & Company, Inc. recommended the following steps • Implement identity preservation of selenium wheat • Obtain FDA health claim approval • Develop a brand concept • Develop a marketing strategy • Develop a business plan • Find a sound business partner

7. Beef Marketing Channel There is some evidence that selenium is taken up in meat relatively uniformly and linearly with available selenium; and that organic sources are more available. There is not enough evidence.

8. Beef Marketing Channel The issues are very similar • Defining your product and consumer • Testing • Blending There are considerable ties to current issues • How to certify? COOL /GM • Targeting

9. Issues – Information needsChicken or the egg? • Production data will be essential • Selenium levels in products as function of selenium level in soils, et al. • Variability in selenium in soils and selenium uptake by product [what we have; what the market will accommodate] • Are there particular species or type(s) of animals, or varieties of grains that result in more bio-available selenium?

10. Issues – Information needs • Testing • Cost • Need (number of tests, point of testing) • Accuracy • Labeling (what are the rules? what will the market accommodate?)

11. Market research needs Will be product specific • Value of high-selenium attribute (including stacked with other traits) • Value of natural source of selenium • Effectiveness within existing marketing channels, of marketing and promotion strategies • Push versus pull marketing strategies • Products of particular interest and with particular economic promise.

12. According to SJH & Company, Inc. Key success factors (selected and paraphrased) • Avoid focus on prevention of specific disease promotion and rather focus on overall health / well - being • Use an extensive marketing campaign to communicate / educate your market • Rely on science, but do so simply • Work on FDA approval for health claim • Secure broad and dependable channels for product placement / distribution

13. Take home messages • We need to change the way we do business, but models exist for us to follow. • This is a high cost / high risk venture. Share the cost / risk. • There is money available -- use it • Incorporate educating the marketing channel • Keep an eye on competition from outside and within the marketing channel