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Evaluating Marketing Channel Options for Small-Scale Fruit and Vegetable Producers

Author

Listed:
  • LeRoux, Matthew N.
  • Schmit, Todd M.
  • Roth, Monika
  • Streeter, Deborah H.

Abstract

An investigation of the relative costs and benefits of marketing channels used by typical smallscale diversified vegetable crop producers is conducted. Using case study evidence from four small farms in Central New York, this study compares the performance of wholesale and direct marketing channels, including how the factors of risk, owner and paid labor, price, lifestyle preferences, and sales volume interact to impact optimal market channel selection. Given the highly perishable nature of the crops grown, along with the risks and potential sales volume of particular channels, a combination of different marketing channels is needed to maximize overall firm performance. Accordingly, a ranking system is developed to summarize the major firm-specific factors across channels and to prioritize those channels with the greatest opportunity for success based on individual firm preferences.

Suggested Citation

  • LeRoux, Matthew N. & Schmit, Todd M. & Roth, Monika & Streeter, Deborah H., 2009. "Evaluating Marketing Channel Options for Small-Scale Fruit and Vegetable Producers," Working Papers 49006, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudawp:49006
    DOI: 10.22004/ag.econ.49006
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    Citations

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    Cited by:

    1. Schmit, T.M. & Gómez, M.I., 2011. "Developing viable farmers markets in rural communities: An investigation of vendor performance using objective and subjective valuations," Food Policy, Elsevier, vol. 36(2), pages 119-127, April.
    2. Martinez, Stephen W. & Hand, Michael S. & Da Pra, Michelle & Pollack, Susan L. & Ralston, Katherine L. & Smith, Travis A. & Vogel, Stephen J. & Clark, Shellye & Lohr, Luanne & Low, Sarah A. & Newman, , 2010. "Local Food Systems: Concepts, Impacts, and Issues," Economic Research Report 96635, United States Department of Agriculture, Economic Research Service.
      • Martinez, Steve & Hand, Michael & Da Pra, Michelle & Pollack, Susan & Ralston, Katherine & Smith, Travis & Vogel, Stephen & Clarke, Shellye & Lohr, Luanne & Low, Sarah & Newman, Constance, 2010. "Local food systems: concepts, impacts, and issues," MPRA Paper 24313, University Library of Munich, Germany.
    3. Rimal, Abrindra & Onyango, Benjamin, 2013. "Attitudes toward Locally Produced Food Products: Households and Food Retailers," Journal of Food Distribution Research, Food Distribution Research Society, vol. 44(1), March.
    4. Nganje, William E. & Skilton, Paul F. & Jensen, Helen H. & Onyeaghala, Raphael, 2011. "Traceability in Food Systems: An Economic Analysis of LGMA and the 2006 Spinach Outbreak," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108776, Agricultural Economics Society.
    5. Curtis, Kynda R. & Yeager, Irvin & Black, Brent & Drost, Daniel & Ward, Ruby, 2014. "Market and Pricing Potential for Extended Season Fresh Produce Sales: An Intermountain West Example," Journal of Food Distribution Research, Food Distribution Research Society, vol. 45(2), pages 1-20, July.
    6. Schmit, Todd M. & Hadcock, Stephen E., 2010. "Assessing barriers to expansion of farm-to-chef sales: a case study from upstate New York," Working Papers 126973, Cornell University, Department of Applied Economics and Management.
    7. Kim, Man-Keun & Curtis, Kynda R. & Yeager, Irvin, 2014. "An Assessment of Market Strategies for Small-Scale Produce Growers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(3), pages 1-18, September.
    8. Vassalos, Michael & Lim, Kar Ho, 2016. "Farmers’ Willingness to Pay for Various Features of Electronic Food Marketing Platforms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(2), pages 1-19, May.
    9. Schmit, Todd M. & Lucke, Anne & Hadcock, Stephen E., 2010. "The Effectiveness of Farm-to-Chef Marketing of Local Foods: An Empirical Assessment from Columbia County, NY," EB Series 121634, Cornell University, Department of Applied Economics and Management.
    10. Rimal, Arbindra, 2016. "Purchasing Locally Produced Fresh Vegetables: National Franchise vs. Locally Owned and Operated Restaurants," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(2), pages 1-11, July.
    11. Jablonski, B.B.R. & Schmit, T.M., 2014. "‘Local’ Producers’ Production Functions and Their Importance in Estimating Economic Impacts," Working Papers 180117, Cornell University, Department of Applied Economics and Management.
    12. Haugum, Margrete & Grande, Jorunn, 2017. "The Role of Marketing in Local Food Networks," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 8(1), pages 1-13, January.
    13. Steve W. Martinez, 2016. "Policies Supporting Local Food in the United States," Agriculture, MDPI, vol. 6(3), pages 1-13, August.

    More about this item

    Keywords

    Agribusiness; Community/Rural/Urban Development; Crop Production/Industries; Demand and Price Analysis; Production Economics;
    All these keywords.

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