In the conference's keynote session, Jim Perdue, chairman of food and agribusiness company Perdue Farms, described the challenges of meeting shifting consumer demands and increasingly complex government regulations.
The growing popularity of organic foods, for instance, is creating opportunities for producers as consumers express concern about how their food is produced.
"We have to understand consumer interests, and understand the difference between a long-term concern and a fad. Consumers aren't willing to pay more for packaging that's easier to recycle, for example, but the humane treatment of animals and people is something consumers are very interested in."
In response to that interest, Perdue Farms announced in September it would be forego the use of antibiotics in its food products. Perdue said many food producers include antibiotics in their animals' daily feed, which he compared to a family administering medication not only when a child is sick, but instead in their breakfast cereal every day.
"We don't need a regulation to make that change," Perdue said. "We wanted to show we could do it with a large number of products."
Purdue, founded in 1920 as an egg company, is grooming its fourth generation into management roles. The company expanded into poultry production in the 1930s, and launched a grain business in 1968.
Today, Purdue has $4 billion in food production sales, including chicken and pork products, and $3 billion in revenue from its agriculture business.
Although 70 percent of its agribusiness sales are to external companies, Perdue said the operations are increasingly interrelated as it increases production of organic feed and seed.
Worker Involvement
Saying workers usually understand their roles and challenges better than company managers, Purdue said it's important for companies to seek employee input in strategic planning.
"If you're going to start a change, it's important to get people involved early in the process to help it go smoothly," he said. "If a worker shows up on a Monday and you tell them something's changed, it's going to be a disaster."
Regulatory Challenges
On the regulatory front, Perdue said government mandates about the blending of ethanol in gasoline was using up to half of U.S. corn production, and caused supply constraints and higher prices for food producers.
"When the government gets involved in a business market, it can mess up that market," Perdue said. "The food market was messed up dramatically by ethanol mandates."
A New Generation
Describing the company's succession planning, Perdue described his experience in working for 10 years away from the family business during his 20s. He returned to the company in his early 30s as a plant manager before taking on greater responsibilities and being named chairman in 1991.
"All of our [fourth-generation family members] worked somewhere else for five years," he said. "You can't find out about yourself and your abilities in a family business as easily as you can in an independent business."
He said Purdue worked with a family business consultant to address transition issues as he took over from his father, Frank, and is following similar measures to prepare a fourth generation for being involved with the company.
He said some of the common challenges include an older generation being reluctant to step away from a business, and providing motivation and appreciation for the younger generation.
"It's not necessarily a long-term goal for use to always have a family member running the company," he said. "There are many different models for how these businesses can work."