High levels of risk from DON, fusaric acid, T-2 and fumonisin present

[LEXINGTON, Ky.] – In 2016, corn growers faced challenges from mycotoxins, and those challenges seem likely to show up for them again as they harvest this fall. The 2017 growing season was challenging across the U.S. Growers in different regions experienced varied weather conditions that could not only reduce yield, but could also increase plant stress and lead to challenges with mycotoxins.

Corn silage samples from across the entirety of the U.S. have shown extremely high levels of mycotoxins, particularly deoxynivalenol (DON), type A trichothecenes (T-2), fusaric acid and fumonisin. It is important to note that once there are mycotoxins in the crop, they will not go away. There will be higher levels of mycotoxins on farms practicing monocropping of corn, as opposed to those farms that are rotating crops or using deeper tillage methods.

Samples submitted to the Alltech 37+^® mycotoxin analytical services laboratory between Sept. 1 and Nov. 1, 2017, show that grains contained mixtures of mycotoxins, including DON, fusaric acid and fumonisin. Forages such as corn silage, barlage and haylage samples also contained multiple mycotoxins in 2017, including DON, fusaric acid, T-2 and fumonisin.

Fumonisin is trending higher across all states as of this time and can have a negative impact on feed intake, gut health, liver function and immune response. Swine and horses are particularly sensitive.

Mycotoxins are a regular concern for producers, as they influence feed quality and animal safety. They are produced by certain species of molds and can have toxic properties that impact animal health and performance.

“Understanding the risk of mycotoxins and combinations of mycotoxins, even at lower levels, allows livestock owners and managers to institute a management program for more optimum performance and health,” said Dr. Max Hawkins, nutritionist with the Alltech^® Mycotoxin Management team. “Testing feedstuffs and finished feeds is paramount to putting this management program in action.”

Mycotoxins are seldom found in isolation, and when multiple mycotoxins are consumed, they may have additive, or even synergistic, interactions that increase the overall risk to performance and health. As a result, an animal may have a stronger response than what would be expected if it was only experiencing a single mycotoxin challenge.

For feedstuffs harvested in 2017 and that are currently being fed, it is important to conduct a mycotoxin analysis that identifies the storage mycotoxins, including Penicillium and Aspergillus mycotoxin groups, as there is potential for additional mycotoxins to develop during storage. Proper mycotoxin management techniques can reduce the risk of mycotoxins coming from feed materials as well as help to prevent the negative effects mycotoxins can on have animal health and performance.

Alltech will be hosting a webinar to review the 2017 Alltech Harvest Analysis results for the U.S. with Dr. Max Hawkins on Dec. 14, 2017 at 10:00 a.m. ET. Register for the webinar via this link.

For more information on mycotoxin management, visit knowmycotoxins.com.  

The Alltech Young Scientist program offers fully funded Ph.D. and postdoctoral positions for undergraduate and graduate winners

[LEXINGTON, Ky.] – The Alltech Young Scientist (AYS) program is considered the world’s most prestigious agriscience competition for university students. Now in its 13th year, AYS has discovered some of the best and brightest upcoming researchers from universities around the world. Rising agri-scientists now have until Dec. 31, 2017, to register for the 2018 competition.

Undergraduate and graduate applicants will compete first within their home regions of North America, Latin America, Asia-Pacific or Europe/Africa. Regional finalists will be invited to attend an all-expense-paid Alltech Young Scientist Discovery Week held May 17–23, 2018, in Lexington, Kentucky, where they will compete in the global competition. Global winners will be announced during ONE: The Alltech Ideas Conference (ONE18) on May 23. The prizes include a fully funded Ph.D. position and $5,000 USD for the global undergraduate winner and a fully funded postdoctoral position and $10,000 USD for the global graduate winner.

“Lifelong learning is a core value within Alltech, and we are proud to invest in young, bright minds through our Alltech Young Scientist program,” said Dr. Aoife Lyons, director of educational initiatives and engagement at Alltech. “It provides a global stage for students to present their research and have the opportunity to further their education and join the Alltech team.”

Students must be nominated by a professor in order to participate and may submit scientific papers on topics such as animal health and nutrition, crop science, agriculture analytical methods, food chain safety and traceability, human health and nutrition, and other agriscience-related sectors. Paper submissions may be completed online through Dec. 31, 2017, and regional winners will be announced in March 2018.

For more information and to register for the Alltech Young Scientist program, visit AlltechYoungScientist.com, and stay connected through the Alltech Education Facebook page.

Luther:                        Dr. Aoife Lyons is director of educational initiatives and engagement at Alltech. She received her doctorate in clinical psychology from DePaul University and is a licensed clinical psychologist. Thank you for joining us.

Aoife:                          Thank you so much.

Luther:                        You have a unique blend of education and work experiences. How’s this given you unique insight maybe into the customer or into business psychology? 

Aoife:                          Well, thank you for that. I do have a unique blend because I’ve been very much immersed in the world of academia, but I also have a bit of business sense. I ran my own business in Chicago for a number of years before joining full-time with Alltech. So, I think that it gives me a sense of the humanity behind business and that not everything is driven by profit. And what people buy and what people decide to do is really not driven by price.

                                    My father often says, “Make a friend, make a sale.” He’s not a psychologist. He discouraged me from psychology, but I think at heart he knows people.

Luther:                        It sounds like you basically have a deep understanding of how people think — maybe sometimes not even cognitively or in their conscious mind — and how business works at the same time.

Aoife:                          Well, I hope that I do, and I hope that I contribute something to that. Something that I was talking about yesterday was price anchoring. What that means is that price is arbitrary. I was teasing my assistant, Ailish, yesterday. She loves to go to the mall when we come over to the States. She will only buy things that are on sale because she loves to see that sale tag. I pointed out to her that she could buy the same thing from Gap Kids at the exact same price, but actually she won’t if she doesn’t see that sale tag.

Luther:                        Give us a definition of what that anchoring really is. It’s our perception of a sale price maybe versus a regular price.

Aoife:                          I’ll give you a real-life example that I gave yesterday. When I was in Chicago, I was running a private practice. The cost of an hour of therapy with me was $150 and a lot of people would pay that price, but I have a commitment to helping the underserved, and they couldn’t pay that price. So, I charge them $40, which was a deep discount, but also a lot for them. I made sure that they knew that the cost of a therapy hour was $150, so they knew the value of what they were getting. That’s price anchoring.

Luther:                        Thank you very much for that example. That makes a lot of sense. Is this part of the “predictable irrationality” that you’ve brought up? I know that it’s important to how we think about pricing, how we think about a business, a product, a service.

Aoife:                          Everything is predictably irrational. We just go around our worlds thinking that we’re rational beings and that we’re making decisions based on the pros and the cons. We just don’t.

Luther:                        I’m sure there are all kinds of examples of that, which you just kind of gave us. What about our human perception? Does this affect our buying decisions as well?

Aoife:                          It affects everything. One example is you get a bill in the mail, and it says that you owe $90 to the television company or whatever it is. You might ignore it. You’re going to get another bill. But, if they change the wording of the bill to include your name and then say 90 percent of the people in your area have already paid this bill, you will pay it. That is social pressure. We can use this.

Luther:                        What are some illusions in our decision-making? I think a lot of us think, “I’m logical. I make decisions based upon logic. If I make a buying decision, it’s because I’ve thought it through.” That isn’t always the case.

Aoife:                          Absolutely not. Let me ask you a question, if I can. What was the last big purchase you made?

Luther:                        A TV.

Aoife:                          How much did you pay for this TV?

Luther:                        About $800.

Aoife:                          When you went in to buy the TV, you probably saw one that was $1,200. You probably saw one that was about $600, and so that $800 looked good to you. If you had walked in and saw one for $800, $600 and $400, you would have bought the one for $600.

Luther:                        What is social proof?

Aoife:                          Are you going to go to the restaurant that has no one in it, or are you going to go to the restaurant that’s crowded? You’re going to go to the crowded restaurant because that food must be better. That is completely irrational. You base that on nothing except for the people in the restaurant. They might be actors. You just don’t know. But social proof, it’s called “herding” in psychology. We follow what other people have done.

Luther:                        In some experiments I’ve seen online that were reality comedies, so to speak, they will have a group of people in line to start off a process with no end in sight and people will come and get in line. Is that similar to what—

Aoife:                          Yes. Yes, that is exactly the same concept, and that’s social proof.

Luther:                        How can a business take advantage of that?

Aoife:                          Well, if you’re a restaurant, hire people to sit outside your restaurant, or form a line and they’ll come in.

Luther:                        Maybe scarcity is also a way to do that, perhaps?

Aoife:                          Scarcity is. But really the driving force in terms of business and what you’re going to sell right now is online. If you have enough online reviews and people who are endorsing your product, people will follow. Print ads are over. Do you believe print ads?

Luther:                        Yeah. I can understand that.

Aoife:                          I know if I’m going to buy a product, if I’m going to buy something online, I’d look at what other people have bought. I look at what they say about the product, and that is hugely powerful.

                                    Big data companies, they draw people in with their big data, but then they use the data that we’re giving them to draw more customers in. I think that’s really the way of the future.

Luther:                        It sounds like one way that you’re saying you can take advantage of it, very different from scarcity, is through social media, through social sharing, through a buzz factor. Like you said, reviews, that’s a form of being social online, and it sounds like you’re saying that we trust each other, or at least the perception of another person, over the marketing or branding that the company may be doing.

Aoife:                          One hundred percent. In Alltech, I think our driving force is our people. I often give a presentation on how to be a good Alltech ambassador, and part of that is saying we’ve got a great brand. I’m very proud of the brand. It’s a family brand, but that’s not good enough.

                                    Every time an Alltech person walks out there, they need to be an ambassador with how they dress; how they interact with people; if they’re warm; if they follow up with what they say they’re going to do; if they’re trustworthy.

Luther:                        So, moving along, what is choice overload?

Aoife:                          Choice overload is a really, really interesting point. If I were to put six jars of jam in front of you and you could taste them, you would probably pick one and buy it. If I gave you 34, you would be overwhelmed and say, “Forget it, Aoife. Not going to buy any more.”

                                    When it comes to Alltech, we used to have a huge portfolio of products. A few years ago, it was thought, “Let’s just narrow this down. We’re not going to sell products anymore. We’re going to sell solutions.” This has been really, really successful because we’re not giving a choice overload. We’re giving a solution, and the solution might be one of four. It’s much easier for us to decide if we’re given one of four.

                                    I think that this also relates to the millennial generation. Many people our age complain about them and their lack of decisiveness, and they just bounce about from job to job. The reality is I think they have too much choice.

Luther:                        From a millennial standpoint, there is so much choice out there. There are so many things to choose from that perhaps that’s part of why they do bounce from one thing to another or struggle, perhaps, to even find happiness or true meaning at times because there’s so much different variation available.

Aoife:                          Yes. Perhaps.

Luther:                        Often, companies think about focusing their products and services, narrowing them so that they can spend more of their attention and time on them, but perhaps the other effect of making that choice is that it gets rid of choice overload for consumers.

Aoife:                          We have to be in the space of creating a product that we all love and want, but we didn’t even know we wanted it until it comes on the market. So, that could be in the case of Apple, the iPhones. In the case of Alltech, we acquired a company just a year ago called KEENAN, and KEENAN makes big mixer wagons for cows. What is fascinating about them is they have gone with tech, they have gone with an app, and they have a system where someone on the phone, a young person, calls the farmer and tells the farmer what those cows are going to need before the farmer knows it. It’s the beauty of the human touch with technology. The farmers love that they can just dial into this big green machine as they call it. They have a solution, and they didn’t even know that there was a problem.

Luther:                        We spoke earlier with Jay Johnston from Fermentrics Technologies, and they actually have facial recognition for cows. They’re able to observe behavior and then they’re able to adjust according to behavior. So, these technologies are allowing us to have insights not only from humans, but honestly into animals and observe behavior and change accordingly.

Aoife:                          I’ll tell you an even crazier example of this. We have The Pearse Lyons Accelerator program going on, and one of the companies is a cow sensor company. They are putting a sensor on the tail of the cows when they’re pregnant. This sends a signal to the farmer when the cow is going to give birth. Now, it sounds simple, but it is revolutionary for the farmers because they don’t have to stay up all night waiting for the cow to give birth. They just get an alarm.

Luther:                        Wow. That’s fascinating. Consumers have more tools available to them, more information than ever before. So, with that being said, are they able to bypass some of the decision-making, some of the predictable irrationality, so to speak?

Aoife:                          We can’t bypass it. It’s just in our genes, and it serves us well.

I was asked a question yesterday, “Do younger people respond differently?”

                                    No, they actually don’t. We are programmed to have these mental shortcuts for a reason. You and I are looking at each other while we’re doing this interview. We’re focused on each other. I’m not focused on everything else around me and neither are you. Our brains need to do that in order to get things done.

Luther:                        What is the take-home message for businesses based on mixing all of this together, the psychology with business, with the consumer, decision making? What would you give as advice in how to think about this and apply it to business?

Aoife:                          First of all, be aware. We’re so influenced in our decisions. We think that we’re making decisions. We actually aren’t.

                                    Be aware of price anchoring. Use that to your advantage, what you price something at.

Second, your perception is not the same as everyone else’s.

The third point is the illusion that we make these decisions.

Luther:                        What do you find most surprising when you look at predictable irrationality in how human beings make decisions?

Aoife:                          When I stumbled on this field, I was at Harvard taking an economics course. They were talking about market demand and market supply, and they were showing me all these graphs and mathematical figures.

                                    I actually said to the professor, “But that’s not how people behave in the real world.”

                                    She just looked at me and said, “Which real world are you talking about?”

                                    Economics is so different than the real world. Then I discovered this whole world of behavioral economics, which is basically taking economic theory — which brought the downfall of the stock market because all these economists were assuming that we were going to behave in predictable ways and rational ways — and putting on psychology and trying to look at people as human.

Luther:                        At the end of the day, it still is people consuming services products that we produce.

Aoife:                          I’ll tell you two examples of this. One personal and one sort of professional. I love Apple products. One of the things that I love is their Genius Bar. I also love that, when I have a problem, I get a person on the end of the phone and that person helps me. So, Apple is selling a product that I buy all the time, but it’s also that person on the other end and that human feel. And, I would say within my own team in Alltech, the human touch and loyalty is what it’s all about.

Luther:                        Dr. Aoife Lyons is director of educational initiatives and engagement at Alltech. Thank you very much.

Dr. Aoife Lyons spoke at ONE: The Alltech Ideas Conference (ONE17). To hear more talks from the conference, sign up for the Alltech Idea Lab. For access, click on the button below.

The Alltech Young Scientist program offers a fully funded Ph.D. position for the undergraduate winner and a postdoctoral position for the graduate winner.

[LEXINGTON, Ky.] – Entering its 13th year, the Alltech Young Scientist (AYS) program is considered one of the world’s most prestigious agriscience competitions for university students. AYS has discovered some of the best and brightest upcoming researchers from universities around the world, and applications are now open for rising agri-scientists who wish to take part in the 2018 competition.

Undergraduate and graduate applicants will compete first within their home regions of North America, Latin America, Asia-Pacific or Europe/Africa. Regional winners will be invited to attend an all-expense-paid Alltech Young Scientist Discovery Week in Lexington, Kentucky, where they will compete in the global competition during ONE: The Alltech Ideas Conference (ONE18), which will be held May 20–23, 2018. The prizes include a fully funded Ph.D. position and $5,000 USD for the global undergraduate winner and a fully funded postdoctoral position and $10,000 USD for the global graduate winner.

“Lifelong learning is a core value within Alltech and we are proud to invest in young, bright minds through our Alltech Young Scientist program,” said Dr. Aoife Lyons, director of educational initiatives and engagement at Alltech. “It provides a global stage for students to present their research and have the opportunity to further their education and join the Alltech team.”

Registration is currently open for the 2018 competition and will close on Oct. 31, 2017. Students must be nominated by a professor in order to participate and may submit scientific papers on topics such as animal health and nutrition, crop science, agriculture analytical methods, food chain safety and traceability, human health and nutrition and other agriscience-related sectors. Paper submission may be completed online through Dec. 31, 2017, and regional winners will be announced in March 2018.

For more information and to register for the Alltech Young Scientist program, visit AlltechYoungScientist.com and stay connected through the Alltech Education Facebook page.

Tom:                    As a registered dietitian/nutritionist and a nutrition solutions specialist at Alltech, Nikki Putnam helps farmers and producers apply the lens of human nutrition to agricultural practices for the improved nutrition of plants, animals and consumers. We thank you for joining us, Nikki.

Nikki:                   Thanks for having me.

Tom:                    So, what role do you play in the chain of events that happen from farm to table?

Nikki:                   I have a really interesting role within Alltech. I actually came from a larger supermarket chain based out of the Midwest. And what I was doing there was acting as a health and wellness spokesperson, helping consumers to understand a bit more about what was in their food, where their food was coming from and what types of food they should be purchasing for prevention of chronic disease or specific diets like food allergies.

                    So, what I’m doing is bringing that to Alltech now and helping our producers explain to consumers, explain to retailers what they’re doing on-farm and how they’re using feeds to improve the nutrition of their animals to then improve the nutrition of that food product they’re bringing to the consumer and to the retailer.

Tom:                    I think we all watch trends in our respective fields. How about you? What noteworthy trends are you keeping an eye on?

Nikki:                   A few things that I think have been really popular as of late is what I like to call the “free-from” diets — gluten-free, dairy-free, soy-free.

                    Also, paying more attention — consumers are paying more attention to food sensitivities. Are they reacting to certain types of foods? Is it an actual allergy? Is it an intolerance? Or is it maybe just more of a preference?

Tom:                    What about consumer perceptions? Let’s start with “free-from.” Is it recognized on the consumer end, and are sales of “free-from” items on the rise?

Nikki:                   I think a lot of consumers are starting to look for these types of products. They’ve been out for quite some time. I mentioned gluten-free, dairy-free, soy-free were available for people who had legitimate allergies to these products. Now, more consumers are looking for these products on supermarket shelves, and, yes, I think that specialty category is continuing to grow. We’re seeing more of that in the supermarkets, and more consumers are looking for it just to feel better. Maybe they don’t have an allergy, but they are looking for new things to help them feel better and improve their well-being.

Tom:                    And what about paying attention to the number of ingredients? Does that seem to have an impact on the consumer end?

Nikki:                   I think those two things tie in together very well. A lot of consumers are perceiving these free-from products as healthier, mainly because they contain fewer ingredients. Many of those products that are included in that specialty format or specialty aisle in the supermarket have fewer ingredients than those that may have included the gluten, the soy, the dairy, etc. 

Tom:                    Would you consider these diets something of a disruptor?

Nikki:                   Absolutely. I think it’s changing the food industry. I think it’s changing the way that producers of food, food companies, the big food industry and retailers are starting to talk to consumers, the way that they’re marketing the products. They’re also changing a lot of product lines to be able to reach these consumers looking for specialty products.

Tom:                    Anything coming along that might disrupt the disruptor?

Nikki:                   Yes, I think so. I think right now the consumers are considered the disruptor, if you will. They’re the ones demanding these different types of food products and asking for things that producers and retailers aren’t offering yet, but we’re seeing producers and retailers really catch up. They’re the ones trying to get ahead of the curve now. We’re seeing a lot of them going out and taking new leaps and forays into different types of products and specialty goods. So, they might be the next disruptor.

Tom:                    So, the potential is definitely there. What are some good ways to get involved?

Nikki:                   A good way to get involved from the producer side is really listening to the consumer. I think this has been something we’ve talked about time and time again over the years at many different events and meetings. I’ve spoken with producers about getting involved or listening to the consumer. What do they want from us? They are out there telling us specifically what they want to buy on supermarket shelves. Whether or not you can meet that exact need that they’re asking for, listen to what’s behind that exact demand. Are they asking for less processed products? Are they asking for more sustainable products? Are they asking for functional foods, maybe added selenium or DHA? They’re telling us what they want.

Tom:                    Are food allergies on the rise? You mentioned sensitivities a few minutes ago, but are we becoming increasingly food sensitive? And if we are, what’s going on?

Nikki:                   I’m not sure that we’re becoming increasingly food sensitive. I think our awareness of food sensitivities, intolerances and allergies is growing. Only about 4 to 6 percent of the population has an actual food allergy. A larger number has intolerances and an even larger number has what we call a “food sensitivity.” So, this is something that an estimated 30 to 40 percent of the population is dealing with. It might be even coming from seemingly healthy foods like whole wheat toast or broccoli.

Tom:                                   Is it often surprising to find out that a rash or some sort of physical response that you might have attributed to any number of other things turns out to be a response to food?

Nikki:                   Yes. I think it’s often very surprising to consumers and patients alike when they find out that something they thought was very healthy like a piece of salmon or an apple is actually causing a negative reaction in their body. Everyone’s bodies are different. So, it’s very difficult for us to give a blanket “these foods are healthy” statement when we don’t know exactly how that person’s body is reacting.

Tom:                    We’ve heard throughout our lives that “we are what we eat.” What’s that implying for human health and for the way the food industry should respond?

Nikki:                   I think we’re going to see some big changes in human health. We’ve been hearing for years about eating for prevention of chronic disease and improving our health and well-being through food. I think we’re going to see this increase even more as we find out more about what foods are specifically good for each individual person. I think we might see some diets evolve into more specific programmed nutrition for each person rather than, like I mentioned before, these blanket healthy food diets.

Tom:                    Would it be a stretch to call food the new medicine?

Nikki:                   Absolutely not. I think food is definitely something we can use for preventative care. You know, Hippocrates said, “Let food be thy medicine.” That’s becoming truer day in and day out.

Tom:                    What are some autoimmune diseases that respond well to nutritional solutions?

Nikki:                   A couple of the autoimmune diseases that we’re finding more of, not necessarily because there are increased incidents, but because, again, our awareness of these diseases is increasing — celiac disease and irritable bowel syndrome are two autoimmune diseases or conditions that are greatly affected by nutrition.

Tom:                    When you think about it, how do free-from diets and attention to food sensitivities, in the end, affect the average consumer’s dinner table?

Nikki:                   I think we’re going to see more changes on the dinner table. We’re seeing more foods that have less processing. People are going back to freshness again. They’re looking for less packaged foods. Or, if they’re eating packaged foods, they’re eating them with the lowest number of ingredients they can find.

Tom:                    Nikki, what about your work do you like the most? What’s the most fun?

Nikki:                   The most fun I have with my job is meeting the farmers and producers. I’m an Iowa girl. I grew up in Iowa. I’m living in Texas now. I’ve always been interested in human nutrition, but I’ve had a soft spot in my heart for agriculture. The best part about my job at Alltech is I get to marry those two things together.

Tom:                    Nikki Putnam is a registered dietitian/nutritionist and a nutrition solution specialist at Alltech. Thank you for being with us.

Nikki:                   Thanks so much.

Nikki Putnam spoke at ONE: The Alltech Ideas Conference (ONE17). To hear more talks from the conference, sign up for the Alltech  Idea Lab. For access, click on the button below.

To listen to our entire conversation with Mary, click on the player.

Luther:                        Mary Shelman is the former director and is currently an advisor to the agribusiness program at Harvard Business School. She is an internationally recognized thought leader on the future of the global agri-food industry. A native of Kentucky, where she still owns a farm, Shelman received her bachelor’s degree in chemical engineering from the University of Kentucky and her master’s degree in business administration from Harvard Business School. Thank you for joining us.

Mary:                          Thank you.

Luther:                        Do millennials really see the supermarket as a daycare center for the elderly?

Mary:                          You know, that’s a great introduction, isn’t it? It really gets people’s attention.

                                    If you stop the millennial walking down the street — and for those who might not know, a millennial is someone born between 1980 and 2000 —that’s not the answer they give to you, but the idea came from my good friend, Aidan Connolly of Alltech. He was running a training program in Lexington with a group of young people from all over the world in their early twenties, and he took them out on this visit to a number of supermarkets here in town. They went to Kroger, and Whole Foods, and I’m sure some others. And he came back and was doing a debrief with them. He said, “Well, what did you think?” “Oh, yeah, those were great. Those were really, really nice.” And then he asked, “Would you shop there?” “Oh, no, we’d never go there.” “Well, why not?” “Well, that’s not the way we would expect to get our food. We’re going to order it online. Somebody is going to bring it to our house, you know.”

                                    So, that led him to the question, “Well, then, there’s no future for supermarkets, right?” And they said, “No, no, we didn’t say that at all.” “Well, what is it then?” “Well, supermarkets are really important because, you know, old people need some place to go, and to get some exercise, and to have some interactions, and be able to get out of the house and move around.”

                                    Aidan just paused and said, “Oh, wow, it’s like a daycare for the elderly.” And that’s where that idea came from. This thing that we’ve been used to all of our lives might not be relevant for this next generation of consumers.

Luther:                        Speaking of consumers, those aged 18–34 are the largest buyers of organics, and they’re the most likely to consider themselves knowledgeable about their food. Is this the newly engaged and empowered food consumer you’re referring to?

Mary:                          Well, they do consider themselves very food aware. They are very interested in cooking and sharing what they eat.

                                    It’s also an incredibly large demographic group. It’s the largest demographic group now in the United States. There are 83 million millennials. There are only 77 million of us baby boomers.

                                    So, when you think about this millennial group, now they’re having families, they’re moving into some portion of their earning power. It’s a very compelling-sized group for the food industry to look at.

                                    However, that’s not the only thing that’s behind this engaged and empowered consumer. I think, overall, the whole country, and perhaps the whole world, is in the midst of this food movement. People want to know more. They care more about their food. They want to know where it comes from. They want to know where it’s produced. And the availability now of information and where they can get that from and how quickly they can get it has really changed their behaviors. I was just looking up the numbers before I came down here to do this with you. There are almost 4 billion internet users in the world now. There are almost 2 billion Facebook users in the world. So, information travels radically (fast).

                                    I was teaching in a program yesterday, and we were having this conversation about this one group that was having a lot of influence, and it sounds like a very rich population, but someone from Honduras was there. He spoke up and said, “No, no, no. In our country (which has very different socio-demographics in terms of economics), people get information very quickly now.” He talked about this idea of engaged eating. So, this consciousness is not just here in this young person group, but that is a group that’s very important because of their purchasing power.

Luther:                        So, we’re talking about millennials and how they’re rejecting the typical grocery store. Can you give us maybe just a summary of why they’re rejecting the grocery store?

Mary:                          I think it’s very simple. It just doesn’t meet their needs, or it doesn’t meet their expectations. I mean, how do they get their food? They order it online. They have it show up to their house. It’s the same way they get their music. It’s the same way you get your taxi now to go to the airport. You call Uber.

                                    They have grown up in a different world, and they don’t understand why they should have to go and wait in line to pay for something, to wade through a store that has aisles and aisles of things that they don’t need.

Luther:                        I think many people view millennials as this enigma, right? “They’re demanding; they’re lazy” are a number of terms. I wonder if that’s your view or more the fact, as you said, the way they grew up is different than the way that you and I grew up. It’s really a generational difference, and the fact is that change is happening faster; it’s just that that change has happened faster than it has in the past.

Mary:                          I think that’s very true. What they have grown up with has been different. Maybe not the way they’ve grown up, but what they’ve grown up with.

                                    The Apple iPhone was introduced in 2007. So, think about how fast that’s changed our behaviors. They’ve just had access to this, a part of this digital economy there.

                                    My son, who is 25, so clearly in this group, is much more vocal in his beliefs, and his friends are as well. But I think what’s interesting is that there are some very good aspects about them. You use the term “kind of lazy,” and I don’t think that’s true at all. I think they just have a different idea about what’s important compared to maybe what you and I grew up with.

                                    Many of them seem to be much more interested in health than other generations. They’re very conscious of their diet and that link between diet and health. They’re much more likely to exercise. So, they’re making food choices based on what they perceive as being healthy, fresh, clean, “free from” these different ingredients. We’d like to go to farmer’s markets where we can see things and engage with farmers.

                                    I think they see food as adventure as well. I grew up in Elizabethtown here in Kentucky and in, basically, a very traditional family. My dad liked beef. So, we’d have beef four or five nights a week and then maybe have a couple of other things. But, you think about the diets now and the diversity that shows up, so one night it’s Chinese, the next night it’s Thai, the next night is sushi. I think these millennials would eat sushi five, six, seven, eight times a week if they could. You know, it’s Italian, it’s Ethiopian, it’s Moroccan. So, that’s just a fundamental change in what they consider as part of their eating habits. They’ve been described as “food thrill seekers.” Maybe you’re at a stage that you can’t travel because of family economics, but you can get some thrill out of your food, and you can share this thrill with your friends.

                                    Seventy percent of this age group takes pictures of their food before they eat it, and many of them put that on Facebook. They share it on Instagram. So, food has become part of their identity, well beyond just fuel for the body and something that’s linked to health. It’s actually part of who they are. And because of that, they want the food they eat to have the values that they have themselves.

                                    They want to be individuals. Think about the craft food movement, the craft beer movement, which was one of the first harbingers of this, how successful that’s been because, hey, if I can have on my iPhone exactly the music that I like, why can’t I have exactly the same kind of curation of food that I like?

                                    The other thing is, they want to buy products that share these values. They believe in the purpose of these companies. So, something like 37 percent of millennials buy products for a cause, so something like Rainforest Alliance. Even if they have to pay more money for that, that’s important to them.

                                    Forty-two percent of this group say that they don’t trust “big food” companies. They feel like those companies, even kind of “big farming” as well, have violated their trust, that they haven’t made good responsible choices, and they push products onto consumers that really have ended up not being good for them. Too much sugar, too much fat, too many unnatural ingredients in there.

Luther:                        So, hitting on that point, it sounds like there are some big implications for the food industry, as you said, that perhaps some of the power is moving to the consumer, where before it was in the producer’s hands.

Mary:                          Right. I’m not sure it’s ever been — So, a producer in the sense of a manufacturer, a big food company.  It’s never been in the farmer’s hands.

Luther:                        I think that’s important to clarify.

Mary:                          Exactly. The big food companies: the Nestlés, the Krafts, the General Mills.                                  

                                    This is creating tremendous uncertainty for them, these changes in the consumers. The models they have used in the past — putting it on product shelves, getting distribution in every store, advertising on mass media, big promotions at the supermarket — they just don’t work anymore in order to drive sales. Those old models are broken, and they’re really struggling to find out what the new models are and what the new products are that satisfy this group.

                                    Just to give you some idea of how serious this is, in the last 10 years, big brands have lost share in 42 out of 54 product categories. Between 2005 and 2015, the top 25 firms have lost $18 billion in market share.

                                    It’s extremely difficult now for these firms to find growth. And so, what they typically do, the first thing they say is, “Oh, you know, our products don’t meet consumer expectations anymore, so let’s reformulate. Let’s take out the sugar. Let’s take out the salt. Let’s make them healthier.” Well, that’s great, but it doesn’t increase sales. It might stop a decline, but it’s not increasing sales.

                                    They say, “Well, let’s introduce our own version of organic, or GMO-free, or gluten-free.” But it’s not getting back to sales growth because when you look underneath, it gets back into this distrust of these companies. And so, that’s forcing them to look at who is being able to grow.

                                    The opportunities that these changes have created are actually for the younger and the smaller companies. These big companies are needing to look to them and say, “Well, I can’t do this myself, I’m going to go out and buy somebody.” So, General Mills bought Annie’s, the maker of all-natural mac and cheese. Perdue bought Niman Ranch. Campbell’s bought Bolthouse Farms just in order to get there.

                                    But think about the disruption that’s being created. Go back in your mind to the yogurt category in 2008. You had products like Trix yogurt and Dannon yogurt, and they were basically all of it. It’s either targeted at women on a diet or kids. The products, honestly, they were disgusting. I just thought they were either too sweet, or they had all these artificial sweeteners and artificial things.

                                    We’ve got this Turkish immigrant who comes in. Hamdi Ulukaya bought this old yogurt plant in upstate New York and introduced this product to the market after spending like two years working on packaging and product quality, but introduced Chobani and basically said, “Hey, we want this product. It’s going to be a great product. It’s going to be great-tasting. It’s going to be this Greek yogurt style. And I don’t want to have it as a special product. I want to make it very accessible to the masses.” So, he was on the protein trend. He was on natural even though it wasn’t organic. It wasn’t non-GMO, but it was natural ingredients. He was riding the social side of it, using social media. He didn’t have any money to advertise. And five years later, that company, Chobani, had $1 billion dollars in sales. In 2012, it was a sponsor of the U.S. Olympic team at the London Olympics. Now, Greek yogurt has gone from nothing to 36 percent of the yogurt category. Walk in the store, it’s almost all Greek yogurt. That category has doubled in size because you’ve got this better product quality there.

Luther:                        Well, I think that fits really well into another news item I saw that Whole Foods has had six straight declining quarters of revenue. In response, they created what they’re calling a 2.0 version: 365 by Whole Foods. They’re actually targeting it at younger, budget-conscious consumers. They claim that it provides easier use, a better grocery experience through a blend of design, technology and experience. Do you think there’s going to be some success out of that? 

Mary:                          I haven’t been in a 365. I’m really anxious to. But, just from what I’ve read about it and what I have read of other people assessing it, I don’t think they have the answer yet. I think they’re just reshaping.

                                    I think getting the size down is good. They can put it in more urban settings.

                                    We have young people now, they want to live back in urban areas again, where they can walk. A lot of them don’t even want cars anymore. So, it’s important that it’s some place that they can get to and shop easily and then get back again.

                                    The format that I think is much more interesting to watch is what Amazon is experimenting with out in Seattle. They started it just after the first of this year, a store called Amazon Go. Basically, it’s a store without lines. The worst thing about going to the grocery store is waiting in line to check out. The way that Amazon Go works is, you walk in, and you scan your phone over a reader. Then, you walk around and you put whatever you want into your basket, and you walk out of the store and go home. They send you a receipt afterward showing everything that you purchased. And there’s also a lot more prepared foods there, which is another aspect of what I think everybody is looking for now. It’s like we need help with thinking about what to eat. So, that’s a more evolved concept of 365.

                                    I think that it’s really hard if you’re an established player in an industry to disrupt yourself. When Whole Foods came in, they came in from outside the industry, brought in something new. What they brought in were all these natural, specialty and organic products. Those have all rolled out into Kroger. You can buy almost the same product quality there, but Kroger wasn’t the one to introduce that to start with. So, I think the format’s like that.

Luther:                        So, what about ClickList? Do you think that’s enough to appease the millennial?

Mary:                          I think it’s definitely a piece of it, online shopping, being able to pick it up. I think that’s helpful, but I think that evolves.

                                    With ClickList, I still have to go to the store to get it. If I click AmazonFresh, it shows up at my house.

Luther:                        I probably should have specified. Kroger ClickList allows you to shop online and then go and pick the groceries up. They’re ready for you.

Mary:                          That’s right. So, you order online and then you make the trip there, and they put it in your car. That’s been successful.

                                    Again, that next evolution of it that’s playing out is where it comes to your house. In this case, it could be Kroger making that delivery, even though I think they’ve chosen not to, but in the Northeast, it’s Stop & Shop, and Peapod is part of a division of Stop & Shop that makes the delivery.

                                    Or is it Amazon? I mean, everybody’s very comfortable now with Amazon. So, do you trust Amazon more to bring you fresh produce than you trust Stop & Shop?

                                    If you look overseas, if you look to the U.K., there’s a supermarket company called Ocado that you buy from online. It shows up at your house. It’s the largest online grocery company. They have no stores at all. So, it’s basically the supermarket without the store. And because of that, they can manage their inventory better because the products make one stop.

                                    Think about fresh foods. They come into the Ocado warehouse. Or you think about fresh foods coming to Kroger. Often they come into the Kroger distribution center. They get split again, and they go out to the different Kroger stores. You go in as a consumer and maybe it’s been sitting there for a few days, but you buy it and take it home. It spends another few days in your refrigerator and then maybe the quality is not so great. With Ocado, it comes into their distribution center. You order it. It immediately comes to your house. So, it’s bypassing that trip to the supermarket plus sitting on that supermarket shelf. So, Ocado says we actually have a higher purchase of fresh products even though here we typically think, “Oh, I’ll never buy a fresh product from an online experience because I can’t see it myself.”

Luther:                        So, continuing the theme of convenience, the millennial doesn’t look at food the same way we do where you go to a grocery store, you buy the parts, you go home and then you have these variable parts that you can assemble via a recipe into X, Y or Z. Are the millennials actually also potentially looking at just skipping that part and going straight to, “I just want a meal sent to me and I’ll choose what meal I want and it’s already assembled, or maybe all the ingredients are there and I just put it all together at that point?”

Mary:                          I think there are a couple of different cuts at that that are very interesting right now.

                                    First, we see the rise of these meal kits that you can order online, and it shows up at your door. And, in many cases, it shows up at your doorstep, and what you’re getting in that box is exactly the amount of ingredients that it takes to prepare the meals. So, if you have a recipe that calls for two stalks of celery, you don’t have to buy the bunch of celery and then have the other six stalks rot in your refrigerator until you throw it away because you have no idea what to do with it.

                                    One in four households in the U.S. have tried meal kits now. There’s like 150 companies operating in this space. Unilever just made a $9 million investment into one of these companies earlier this month. So, they’re getting some serious traction. The retention rate is very high once you try because it turns out the product qualities are good.

                                    You think, “Well, wait a minute, this seems all very expensive to have this come to your house,” but the cost of that meal that they’re sending you is $10–$12. It’s not really that much. Maybe if you have a family of six or eight or 10, that’s too high, but certainly there’s a lot of one- and two-person households out there. So, you get the convenience that it shows up at your house.

                                    You get the fact that you’ve really cut down on food waste, both on the ingredient side, but also you don’t have all these leftovers that then you have to throw away.

                                    The other thing it cuts down on is choice. We always think choice is good. But if you’re pressed for time or if you don’t know how to cook and you’re looking maybe to learn, then you want a recipe already there rather than having to look to a cookbook, right? Everybody says, “Oh, we’re offering all these recipe solutions.” Well, I don’t want to have to look through those recipes and decide. Here, it just shows up, and you’re getting your cooking lesson on top of it. So, I think there’s a lot of interest in that space.

                                    Blue Apron, the biggest player, is now delivering 1 million meals a month. It’s a big number, right? At $10 a meal, it’s about a $1 billion-dollar business. Valuation is probably $2 billion. And they work directly with the farmers. So, an interesting piece of their model is how they decide what recipes to offer. Some of it is based on what consumers want, but some of it is based on what’s available. They can find out from their farmers what’s in season right now and what the prices are at different times of the year. They basically come up with what they’re going to offer based on being able to meet their price points.

Luther:                        Very interesting. So, to bring this back home to supermarkets, how do they meet the expectations? How do they have authenticity, and transparency, and traceability from the producers, holding manufacturers accountable, and at the same time maintaining the convenience at a price point and profitability through all of this?

Mary:                          It’s a huge challenge, isn’t it, especially if you already have a big business model and a big footprint that operates in a certain way. It’s just like death by a thousand cuts.

                                    Think about the impact of, you know, certain categories moving online. So now people buy their diapers online. So now your supermarket is too big because you don’t need to have as big of a diaper stock anymore. Well, you have supermarkets that are too big, but yet you can’t lop off a supermarket because it still means that the supermarkets that you have left are still too big. So, how do you repurpose that space? I think it’s a real challenge.

                                    But, some of the things that I think that really need to be done are — one of them is a mindset shift. We see some of this going on. I think for a number of years, supermarkets really considered themselves as, basically, “Our role is to rent real estate to manufacturers of food products. We just display it. You work on your products and bring it in, and we’ll display it. If it happens to sell, that’s great. And if it doesn’t, we’ll kick you off the shelf. And by the way, you’re going pay us for the right to be on that shelf because we’re taking a risk putting you there because we’ve had to take something else off.” That mind shift has to shift back to, “As a supermarket, my role should be as a gatekeeper to this set of products that my customers really want. And not only am I giving them the products that fit their needs, but I’m also working in that store to create experiences for them,” because this young group now — and many of us, right? — we have too much stuff. So now we’d rather invest in experiences than we would products. So, how do you make food an experience? How do we make sure in that supermarket it is going to have to tell a story of the food product? That’s the important piece of it.

                                    In Milan, a couple of years ago, there was the World Food Expo, and there was a supermarket of the future there. And, basically, you walked around the store and you had augmented reality where every time you looked at a category, you could see visually the product information and where it came from, who grew it, whatever. I don’t think shoppers want to see that every time. To me, I’m not sure that’s the supermarket of the future. I do think people will want the experiences, the authenticity, the stories, the engagement, but at the same time, this convenience piece is really important. So, supermarkets are going to have to be omnichannel. So, you’ve got a store that has some elements of this, but it also has to come to the house. And analytics. Data analytics. You know, being able to really dig in and understand what sells, what doesn’t sell, what price points.

Luther:                        Mary Shelman is former director and is currently an adviser to the agribusiness program at Harvard Business School. Thank you for joining us.

Mary:                          Thank you.

Mary Shelman spoke at ONE: The Alltech Ideas Conference (ONE17). To hear more talks from the conference, sign up for the Alltech Idea Lab. For access, click on the button below.

Matthew Aardsma wins award for paper on relative metabolizable energy values for fats and oils in young broilers and adult roosters

[LEXINGTON, Ky.] — Connecting the farm to the lab through research is critical for agricultural innovation. Illustrating its commitment to encouraging student research, Alltech presented the 34th Alltech Student Research Manuscript Award to Matthew Aardsma of Purdue University during the 106th annual Poultry Science Association meeting, held in Orlando, Florida, July 17–20.

The Alltech Student Research Manuscript Award is given to a student who is the senior author of an outstanding research manuscript in Poultry Science or The Journal of Applied Poultry Research. Aardsma’s winning paper titled, Relative metabolizable energy values for fats and oils in young broilers and adult roosters, focused on developing a bio-assay where feed-grade fats and oils were evaluated for their relative metabolizable energy content quickly and accurately. The paper showed results for several fats and oils that are commonly fed in the poultry industry, and that the results obtained for adult roosters are the same with young broiler chickens.

"Research is an integral part of Alltech and the poultry industry's success to date," said Dr. Ted Sefton, director of poultry for Alltech Canada. "Alltech is proud to sponsor the Alltech Student Research Manuscript Award to encourage students to publish their research in peer-reviewed journals and communicate new technologies and discoveries being made in the lab that can have a direct impact on the farm."

Aardsma grew up in Central Illinois, where his parents encouraged him to explore his interests in agriculture and animal production. He received his bachelor’s degree in animal sciences from the University of Illinois Urbana-Champaign in 2013 and his master’s degree in animal sciences with an emphasis in poultry nutrition in 2015, working with Dr. Carl Parsons. After a summer internship at Southern Illinois University working in aquaculture nutrition, he began a Ph.D. program in animal nutrition at Purdue University. Aardsma is currently studying with Jay Johnson and focusing on nutrition-based stress physiology in poultry and swine.

Alltech has sponsored the Alltech Student Research Manuscript Award since 2000, recognizing young leaders in scientific innovation for their commitment to publishing and sharing their work within the poultry sector.

[LEXINGTON, Ky.] – Two students accepted the top global awards for the 12th annual Alltech Young Scientist (AYS) program, the world’ most prestigious agriscience competition for university students.
The AYS awards, recognizing pioneering research in the agriscience sector, were presented at ONE: The Alltech Ideas Conference (ONE17), an event dedicated to inspiring innovation in Lexington, Kentucky, USA, held May 21–24. Now in its 33rd year, the annual international conference is expected to draw approximately 4,000 attendees from nearly 80 countries to network and discuss disruptive ideas in business, technology, food and agriculture.

The global undergraduate winner was Joshua C. Gukowsky, who attends the University of Massachusetts Amherst in the U.S. Gukowsky was offered a fully funded Ph.D. position and $5,000 USD. The global graduate winner was Jonas de Souza, who attends Michigan State University in the U.S. De Souza was offered a fully funded postdoctorate position and $10,000 USD.

Dr. Aoife Lyons, director of educational initiatives and engagement at Alltech, and Victoria Liu, Alltech Young Scientist program manager, presented the awards in the famed Rupp Arena during ONE17.

“This year, we encouraged students to think about the ONE disruptive idea that will transform the way we think and work in agriculture in order for it to thrive and be sustainable,” said Lyons. “The international panel of judges, led by Irish professor Maurice Boland, was encouraged by this group of hugely talented students, all of whom place a huge emphasis on their scientific education.

“I speak for all of the judges on this year’s panel when I congratulate the 2017 winners,” continued Lyons. “The students not only exemplified great skill, but also aptitude and curiosity, which, in our minds, demonstrate their potential as the scientific leaders of tomorrow.”

This year, the program received more than 150 nominations from 134 professors, representing the world’s top 121 universities from 36 countries. To participate, students were nominated by their professors and submitted scientific papers on topics such as animal health and nutrition, agriculture analytical methods, food chain safety and traceability, human health and nutrition, and other agriscience-related sectors. Each student’s paper first competed within their own region of North America, Latin America, Asia-Pacific, or Europe and Africa. The first place regional winners, eight in total, were invited to an all-expenses-paid Alltech Discovery Week in Kentucky that culminated at ONE17, where a panel of leading judges selected the winners for the 2017 program.

“Thank you, everyone — this is a great honor to receive this prize,” said de Souza, the graduate winner. “Thank you to Dr. Aoife Lyons for putting this competition together to support new and young scientists. We are all winners in this program.”

De Souza’s research focused on altering the ratio of dietary palmitic, stearic and oleic acids, or fatty acids, in diets with or without whole cottonseed and the responses of dairy cows.

“Wow, thank you so much — I was really not expecting this,” said Gukowsky, the undergraduate winner. “First and foremost, I want to thank my parents and family.”

Gukowsky’s research featured detecting antibiotic residues in the foods we consume.

Entry for the 2018 program will open in September 2017.

For more information about ONE: The Alltech Ideas Conference, visit one.alltech.com. Join the conversation online with #ONE17.

Tom:                Technological innovations have the ability to transform every link in the food chain, from seed to fork. We're joined by the author of those words, Alltech's chief innovation officer, Aidan Connolly, to talk about disruption and the accelerating pace of change. Thank you for being with us.

Aidan:             Thank you.

Tom:                “Disrupting the Disruptors” is the theme of this conference. Sounds a little bit like chaos, or are we interpreting that too literally?

Aidan:             Well, you have to remember that although Alltech has become a very large organization employing over 5,000 people, we're still led by an entrepreneur. We're still led by the man, Dr. Pearse Lyons, who created and started the company, and he very much enjoys disrupting things. If you work for Alltech, you would know that. So the conference reflects the fact that he sees the world changing tremendously and that conventional thinking is not going to solve the problems that we are facing. We need to think differently about how we confront those issues, and if we do so, in the right way, we'd profit from our solutions.

What is disruption?

Tom:                That word, “disruption,” is becoming something of a buzzword, and the originator of the theory has complained that the term is frequently used loosely to invoke the concept of innovation in support of whatever it is that person wishes to do. What, in your view, defines meaningful disruption?

Aidan:             Well, it is something that you hear a lot of discussion about, and, obviously, you hear people from universities, people, academics, talking about it. But practically, I feel that innovation is all about doing the same thing better, whereas disruption is about doing things that make the way we do it today obsolete, and that obsolescence of the old ways of doing things is overused as a phrase, there's no question about it. We do hear people talking about things that are fairly conventional and how they're going to disrupt them, but we've seen huge disruption in all markets in the last three to five years. We think of the Uber model disrupting the way that we get moved from place to place, we think of the Netflix way of disrupting the model of how we get our movies, and you look at businesses that are really struggling to cope with the level of disruption of the scene, in particular, in our area, areas such as the food business, grocery stores, shopping malls that are empty, et cetera. So the level of disruption that we're seeing just requires us all in business to think differently about what we do and to really prepare for that business is not going to be the same as — it's not going to be as usual.

Tom:                The pace of disruption today seems to have really accelerated. Won't something soon come along and disrupt your disruptor?

Aidan:             Of course. And sometimes you feel disruption is like being on a conveyor belt. You're walking along, and just about the point that you get to one spot, you have to keep on walking because, if not, you start being pulled back. So there is no question that the level of change in society no longer allows you to come up with a new business model or idea and expect to get away with maintaining that for 10 or 15 years. You have to be on a continuous disruptive innovation pathway.

                        What I would say is that this perhaps is not as different as we think. We did for 200,000 years maintain pretty much a hunter-gatherer existence. We started farming about 10,000 years ago. That led to the development of cities and civilization and the time to think and innovation and art and all of the creative stuff that we're doing today. We have to assume that although we're seeing acceleration, which seemed mind-boggling in the last 10 years, that's going to continue. It might even accelerate.

Investing in disruptive ideas

Tom:                Do investors in disruptive technologies or innovations need an iron stomach? Do they need to be pretty tolerant of risks?

Aidan:             I think a lot of people use the phrase “I'm looking to invest in a unicorn, I'm looking for the unicorn, and I'm trying to figure out what a unicorn is.” But, of course, the unicorn, in their language, is this one business opportunity that you invest $10,000, $100,000 and magically, over a number of years, with the insight that they have to create businesses worth $100 million or $1 billion. The reality is, there are very few of those out there, and, of course, they are well-reported in the newspapers and in the media because that is what people are excited by.

                        I think if I'm an investor, I have to assume, as we always do, that we're going to have some successes, we're going to have some failures and we're going to have a loss in the middle.

                        And make sure that you maintain a portfolio approach to how you invest. So would I invest $10,000 in one project, or would it be better investing $1,000 in 10? I would feel the 10 is always the better way to go.

                        Yes, there are people out there with unique insights into where the future of the world is going to go, but the vast majority of us are not that lucky. And as such, we have to embrace what we see as the opportunities but also be prepared to spread our risk.

                 Digital technologies that will transform how we farm

Tom:                 In a recent article, you identified eight disruptive digital technologies with the power to transform agriculture. Which technologies made that list?

Aidan:             I hope I can remember all eight now off the top of my mind, but I remember we have hardware solutions, such as drones and robots, sensors. We have the software applications of virtual reality, enhanced reality, artificial intelligence. Of course, we think a lot about the internet of things, bringing all of these together. From my perspective, all of these have tremendous opportunities to change the way in which business is done — all types of business — but the gap between where we are today and where we could be in food and agriculture is even larger.

                        So, from that perspective, I think that the gains can be much greater. You take a technology such as blockchain, which most of your listeners probably will not know what blockchain is. It's a little bit like bitcoin to allow you to have transparency in a system where you don't actually know who manufactures, who transforms or changes it, who packages it and who delivers it. The food system is a classic example of that. But you need that transparency to make sure that if there's a food scare, if there's a requirement for going back and finding where something bad happened, you can do so.

                        So blockchain is another transformation of technology. But, from my perspective, all of these eight areas all can transform food and agriculture. Some of them are closer to being implemented. For example, robots we already see being used on farms to help milk cows, sensors to detect the water content of soils so we can irrigate better. But then others, maybe like virtual reality, are further away, will require larger investments, and as of yet, we're looking to the future, not looking at today.

Tom:                Among them, is there one or are there some that you find really compelling?

Aidan:             I think people talk a lot about the internet of things, and that clearly is the central point of all of this. As in feedback from devices from the information you're collecting, bringing that back  to your systems, to your computers and being able to analyze and understand what you're seeing.

                        But fundamentally, I think artificial intelligence is the one I would go for. That is the one that I think is the most transformative, the most disruptive and the one I'm most excited by.

How should businesses deal with digital disruption?

Tom:                Borrowing from a question that you've raised, given that artificial intelligence, or AI, has the potential to revolutionize many areas of a company's operations, including their decision-making processes and their budgeting abilities, how best for an organization to invest in and leverage AI?

Aidan:             That's a really good question, and obviously I posed it myself in the article we published on alltech.com and on my LinkedIn page. I think you have to be extremely hard-nosed about really understanding what the technology is and who's behind it. And, of course, for most of us, we don't feel comfortable asking some of these writing algorithms or mathematical formulae, "Now, how do I use this? What does it do?" But it has the ability to transform life and transform, in particular, work life. So we really have to dig into it, and the classic questions exist of “What is it going to do for me and for my business, my customers? How is this going to help me make more efficient or better or do so at a lower cost?” Examples of where it's being used today, that's clearly something that is very, very important. So while I wouldn't necessarily focus on existing sales, I'd like to look at existing uses and applications.

                        I think, while a lot of us feel very uncomfortable with trying to understand technology, I don't see any aspect of business today which will not be affected by it. So I think it's kind of important for us all to read as much as we can, research these areas. There are tremendous articles online on the internet that you can read. And obviously, don't rely on one. Read many of them. But I've also recently formed a kitchen cabinet of friends who I know I can call on who have the time and the interest to understand this better than me, who can give me very good advice as to whether, from an Alltech perspective and/or my customers' perspective, whether something being promoted actually has the ability to deliver what it says it can deliver.

How innovators and tech entrepreneurs deal with failure

Tom:                How important is it to the technological entrepreneur, the innovator, to accept risk and even accept the possibility of failure going into it?

Aidan:             It's absolutely essential. So if you think of the types of companies I've seen in my short space looking at this since the creation of The Pearse Lyons Accelerator, it's surprising to me how many things can happen that you just can't predict. You can have somebody sadly fall ill. In one case, I saw somebody who's in his 40s die of a cancer that we did not know when he was setting up his business, so obviously, he could never have. We've seen situations where anchor customers go out of business, the customer that you're most reliant upon.

                        So you have to accept that when you're talking about 10 or 100 or 1,000 companies, a certain percentage of them will have things happen to them which are just not predictable. And back to my suggestion of taking a portfolio approach to how you invest or how you select, obviously you can do your best to find the companies you think are likely to succeed. But if you try picking a single company, I think you're always taking a risk, a very large risk that your investment strategy will not be successful.

Tom:                And if it's not successful, if failure turns out to be the outcome, what should happen then? What should you do with that?

Aidan:             Well, ideally, it should be money that you can afford to lose. I mean, that's the essence. For yourself, personally, or for your company, you shouldn't be overextended into something.

                        I met a company last week who have twice invested in technology that they were told would transform the way their factory worked. They, in one case, invested $600,000, the next case $300,000, and both times the software failed to deliver on its promise. So they're down $1 million. If they couldn't afford the $1 million, they shouldn't have invested it. It is clear they believed that if they succeed, this will put them at a tremendous competitive advantage over everybody else in their business, but at the same time, you have to understand many of these technologies don't succeed.

Bringing it back to the kitchen table: How will ag disruption impact the consumer?

Tom:                How does this ongoing disruption in the agriculture sector affect the average consumer's kitchen table?

Aidan:             It could affect it in many, many ways. The most obvious, which was surprising to me, was to see a 3D printer printing food. If you think that's hard to believe, just imagine a cake being produced where the machine is just moving in circles and it's basically using food ingredients to print out the cake and create it perfectly. So will that be capable of producing burgers and fries in the future? I'm not sure about that, but why not? That 3D food printer today is about $3,000. So, maybe expensive, but starting to sound like it's within the realm for people who wish to do that. I could imagine the same thing clearly for drinks, maybe being even easier when drinks are so deconstructed.

                        If I think about what it could do from the point of view of traceability, I see McDonald's having a virtual reality farm visit. So if you are the type of person who wants to go to McDonald's — and this is being held in England — and you want to see where their food is being produced, their potatoes, their beef, their tomatoes, you can actually put on the goggles and you can visit their farm virtually without ever having to leave the store.

                        And if you think in terms of what's happening in traceability of food, I mentioned blockchain earlier. This is very important as well for places like China. But Walmart having used blockchain in China is bringing it back to the United States and implementing it here to make for better traceability. When there is any sort of issue with packaging, maybe even food safety, they know exactly where in the chain the problem occurred and how to solve that problem quickly.

                        So I see these will basically, I believe, hopefully help to continue to make food more affordable, make food safer. I'd like to think it will add flavor to food and allow consumers to do what they said they want, which is to understand more where their food comes from.

Tom:                Alltech Chief Innovation Officer Aidan Connolly, thank you so much.

Aidan Connolly spoke at ONE: The Alltech Ideas Conference (ONE17).To hear more talks from the conference, sign up for the Alltech Idea Lab. For access, click on the button below.

[LEXINGTON, Ky.] — In just a few short weeks, some of the brightest scientific thinkers from colleges and universities around the world will gather under one roof for an opportunity to compete at the highest level and be rewarded for their innovative research. The Alltech Young Scientist (AYS) program, now in its 12th year, features the world’s largest agriscience competition, with 154 nominations from 134 professors representing 121 universities from 36 countries in 2017 alone.

The regional finalists will attend AYS Discovery Week, held in conjunction with ONE: The Alltech Ideas Conference (ONE17), May 21–24 in Lexington, Kentucky, to present their papers to a panel of international judges. The prizes include a fully funded Ph.D. position for the global undergraduate winner as well as $5,000 USD and a fully funded postdoctorate position and $10,000 USD for the global graduate winner.

The regional finalists selected for the graduate AYS award and their paper topics are:

• Tanimowo Damilola, University of Ibadan, Nigeria
  • “Broiler nutritional programming using betaine”
• Syed Saad Gilani, University of Adelaide, Australia
  • “Gut health biomarkers in poultry”
• Delano Dias Schleder, Universidade Federal de Santa Catarina, Brazil
  • “Shrimp resistance to stress and disease”
• Jonas de Souza, Michigan State University, United States
  • “Fatty acid metabolism”

The regional finalists selected for the undergraduate AYS award and their paper topics are:

• Sophie Hazelden, Nottingham Trent University, United Kingdom
  • “Pre-weaning dietary supplementation in piglets”
• Sujiyanto, Universitas Gadjah Mada, Indonesia
  • “Trehalose supplementation for heat-stressed broilers”
• Nicolàs Curubeto, Universidad Argentina de la Empresa, Argentina
  • “Edible coatings for food applications”
• Joshua Gukowsky, University of Massachusetts Amherst, United States
  • “Detecting antibiotic residues in foods”

“The Alltech Young Scientist program provides a great opportunity for students to showcase their research talent in front of a global audience, including some of the most respected leaders within agriculture and agriscience,” said Dr. Aoife Lyons, director of educational initiatives and engagement at Alltech. “We are rewarding the undergraduate and graduate competition winners with the opportunity to join our global team.”

For more information about the Alltech Young Scientist program and to view the regional placements from this year’s program, please visit: AlltechYoungScientist.com and stay connected through the Alltech Education Facebook page.

Tanimowo Damilola, University of Ibadan, Nigeria, has been selected as a graduate regional finalist for the 2017 Alltech Young Scientist program.

Syed Saad Gilani,University of Adelaide, Australia, has been selected as a graduate regional finalist for the 2017 Alltech Young Scientist program.

Delano Dias Schleder,Universidade Federal de Santa Catarina, Brazil, has been selected as a graduate regional finalist for the 2017 Alltech Young Scientist program.

Sophie Hazelden,Nottingham Trent University, United Kingdom, has been selected as an undergraduate regional finalist for the 2017 Alltech Young Scientist program.

Sujiyanto,Universitas Gadjah Mada, Indonesia, has been selected as an undergraduate regional finalist for the 2017 Alltech Young Scientist program.

Nicolàs Curubeto,Universidad Argentina de la Empresa, Argentina, has been selected as an undergraduate regional finalist for the 2017 Alltech Young Scientist program.

Joshua Gukowsky,University of Massachusetts Amherst, United States, has been selected as an undergraduate regional finalist for the 2017 Alltech Young Scientist program.