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

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

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

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?

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

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

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.

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

Issues – Information needs Chicken 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?

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

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.

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

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