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Evaluating marketing channel options for small-scale fruit and vegetable producers

Published online by Cambridge University Press:  15 January 2010

M.N. LeRoux ,
T.M. Schmit ,
M. Roth  and
D.H. Streeter
M.N. LeRoux
Affiliation:
Cornell Cooperative Extension of Tompkins County, Ithaca, NY, USA.
T.M. Schmit*
Affiliation:
Department of Applied Economics and Management, Cornell University, Ithaca, NY 14853, USA.
M. Roth
Affiliation:
Cornell Cooperative Extension of Tompkins County, Ithaca, NY, USA.
D.H. Streeter
Affiliation:
Department of Applied Economics and Management, Cornell University, Ithaca, NY 14853, USA.
*
*Corresponding author: [email protected]
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Abstract

An analytical framework and ranking system is developed to summarize the primary factors affecting marketing channel performance and to prioritize those channels with the greatest opportunity for success. An application of the model is conducted using case-study evidence from four small-scale diversified vegetable crop producers in Central New York. The relative costs and benefits of alternative wholesale and direct marketing channels are investigated, including how the factors of risk, owner and paid labor, profits, 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.

Keywords

local foodmarketingwholesaledirectmarketing channelseconomic evaluation
Type
Research Papers
Information
Renewable Agriculture and Food Systems , Volume 25 , Special Issue 1: “Food for Life”: Looking Beyond the Horizon , March 2010 , pp. 16 - 23
Copyright
Copyright © Cambridge University Press 2010

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