News

By Emma Geldart

In addition to growing and harvesting crops, there is one very important part of agriculture that helps the industry to thrive- marketing.

Dr. Simon Somogyi, an Associate Professor of Business at the Faculty of Agriculture, focuses his research on agribusiness marketing. Originally from Adelaide, Australia, Dr. Somogyi’s research looks at linking growers and their products with specific high value markets.

“My research is about increasing agribusiness income throughout the chain, from input supplier and farmer to retailer,” Dr. Somogyi explains. “I think agriculture needs more of this.”

Dr. Somogyi’s research takes two forms- value chain management mainly in horticulture industries and wine business. Dr. Somogyi explains that value chain management research and development is about linking everyone in the chain with higher value markets, especially growers. He has been working on this for about five years. Wine business research is about linking wineries with new consumers and serving their current ones better. With a Bachelor of Wine Marketing and his PhD from the University of Adelaide, he has been working on wine business research for about 11 years. For his PhD, Dr. Somogyi developed a model of communication between grape growers and wineries.

“I love seeing agribusinesses become more successful,” he explains.

Dr. Somogyi begins his value chain research by mapping the chain from where the product begins to where it ends up. He looks at how products flow through the chain from inputs and genetics to retail and finally, to the consumer. He conducts consumer research as well to understand what consumers want. He then looks at how consumer information flows back up the chain from retailer to farmer.

“The relationships between all members of the chain are analyzed,” Dr. Somogyi explains. “We particularly want to understand the level of trust between members of the chain.”

For wine businesses, much of his research has been about understanding consumers to help serve them better.

“If we understand them better we generate more income for the business,” he explains.

Dr. Somogyi’s research has a major impact on the agriculture industry. He explains that in 2012, he performed a value chain research project for broccoli exported from Australia to Singapore. The project focused on understanding costs, relationships between members, market specification particularly at the Singapore end, and establishing retailer and importer contacts. As a result of the study, the growers and importers were planting and exporting 40-50% more broccoli and receiving a 20-30% higher return than their traditional domestic retail markets.

“The study ended with more income for everyone in the chain,” Dr. Somogyi explains.

 Dr. Somogyi hopes he can help produce these kinds of results in Nova Scotia.

“I hope to do more value chain projects for businesses in Nova Scotian agri-food chains,” he explains. “I believe this province has high quality, high value agri-food products that can get a premium price in premium markets. We can take what we currently produce and find higher value markets for it. In other words, let’s grow the agriculture industry in Nova Scotia by creating more value chains.”