Strategic Marketing Decisions for Organic Agricultural Producers

A group of organic agricultural producers facing a strategic decision is featured. If they decide to form an organization to market their produce jointly, they will have to select a distribution channel. This case presents the demand conditions, requirements, advantages, and disadvantages of different distribution channels for organic vegetables, both on a general level and as they relate to this particular group. The following channels are addressed: roadside stands, farmers' markets, distributors, retailers, restaurants, institutions, and processors. Study questions for use in an academic course or workshop are included.organic agriculture, distribution channels, strategic management, Agribusiness, Marketing,

INVENTORYING RESOURCES: AN APPLICATION TO PRODUCT-ORIENTED AGRICULTURE

Different resources are necessary in the new, product-oriented agricultural environment. This article explores the question of what information is best suited for strategic analysis and strategy formulation for firms involved in product-oriented agriculture. A new framework for inventorying agricultural resources is introduced, and suggestions for implementing it are included.Farm Management,

STRATEGIC PLANNING AND FIRM PERFORMANCE: A PROPOSED THEORETICAL MODEL FOR SMALL AGRIBUSINESS FIRMS

The link between strategic planning and firm performance has been studied for over two decades. This paper examines this link, with emphasis on small agribusiness firms. A model of strategic planning and performance is developed and applied to small agribusiness firms. Implications for research and limitations are discussed.Agribusiness,

DEMAND OVERVIEW FOR ORGANIC PRODUCE

The market for organic food has been growing 20% per year for the past nine years. Fruits and vegetables are a large part of the organic market, accounting for more than $670 million in retail sales annually. This presents an opportunity for entry of new agricultural producers, and the expansion of existing organic growers. Similarly to other businesses, organic producers will succeed by providing customer value. The best opportunity for organic growers to achieve this is to focus on increasing the perceived benefits of the product. Examples of benefits for organic growers to focus on are: favorable environmental impacts, positive health benefits, and positive effects on the local economy. Since the market for organic fruits and vegetables is currently small relative to the overall food market, a market segmentation strategy is advisable. Two market segments, the "True Naturals" and the "New Green Mainstream" have been identified as the core market for natural products. Marketing efforts should be focused on appealing to one (or both) of these groups. Six major marketing channels were considered, with positive aspects and barriers/potential pitfalls given for each. The two easiest channels to enter, in terms of lowest financial capital and networking requirements, are farm markets (on-site) and farmers' markets. These alternatives may have limited volume potential, however. The upside of marketing to distributors, retailers, and restaurants is the potential to market a substantially larger volume than would be possible through marketing direct to consumers. Significant barriers must be overcome to market to these more complex buyers, however. The best way to enter these channels (i.e., distributors, retailers, and restaurants) is for growers to pool resources and work together as a group.Demand and Price Analysis,

ON THE EXISTENCE AND UNIQUENESS OF SOLUTIONS TO BOUNDARY VALUE PROBLEMS ON TIME SCALES

This work formulates existence, uniqueness, and uniqueness-implies-existence theorems for solutions to two-point vector boundary value problems on time scales. The methods used include maximum principles, a priori bounds on solutions, and the nonlinear alternative of Leray-Schauder

ANALYSIS OF STRATEGIC MARKETING DECISIONS FOR ORGANIC AGRICULTURAL PRODUCERS: A CASE STUDY

This article is a business strategy case study of a group of agricultural producers. One aspect of their strategic decision is whether or not to establish a firm to market their organic vegetables jointly. Another aspect of the decision is which distribution channel to pursue. Data for the paper were obtained from multiple sources, including trade journals, academic journals, and directed interviews with key informants from industry, academic institutions, and government. Face-to-face, structured interviews with members of the grower group were also conducted to obtain data about their resources and skills. An overview of conditions facing the organic vegetable industry (especially demand conditions) is included. The results could apply to other vegetable producers (organic or conventional) who are evaluating new distribution channels.Industrial Organization, Marketing,