RELIEF AND DEVELOPMENT: BEAN SEED MARKETS IN HONDURAS AFTER HURRICANE MITCH

Crop Production/Industries, International Development, Marketing,

Potential Supply and Demand for Apple and Cherry-Apple Hard Cider Markets in Michigan, and Constraints to Market Development

The current research explores the potential to develop a cherry-apple hard cider market as a potential means to increase demand for and the value of Michigan fruit grower's product. Factors affecting both the development of hard cider markets in Michigan and cherry-apple hard cider were explored. Research results show that the potential value of Michigan hard cider market is relatively small but significant, estimated at ranging between $580,000 and$2,900,000 per year. Microbrews would be primary actors to promote HC market. They are willing and able to dabble in it, promote it. But they are constrained by need for license and this impedes participation of many who would be otherwise interested. Some microbrews uninterested in state-wide push because they feel it will focus on sweet product that they are uninterested in producing. This position is reflective of a seeming contraction inherent in current enthusiasm over the potential of the market, as figures recent market growth is largely fueled by the current trendiness of "malternatives" as a beverage category, while the maintenance of the market, and the interests of some microbrewers and other purveyors is primarily derived from the traditional image of hard cider, with "traditional" vs. "trendy" hard cider products reflecting significant taste differences. Hard cider is also potentially an important product for wineries. There is a high sales potential for a Michigan-brewed hard cider product, however producing a hard cider that is produced exclusively from Michigan-grown fruit could be more difficult due to supply limitations, logistical constraints, and cost. Constraints to growth of hard cider industry include licensing requirements, taxation issues, primary ingredient sourcing and transport, and fluctuating prices, particularly for cherry juice. The research showed high potential for hard cider that blends cherries (and many other fruits) with apple, however such a product would be rotated with current hard cider, not added as a new product in most cases. Its demand increasing potential still exists, however, even if offered as a substitute to hard cider, due to its novelty and variety.Demand and Price Analysis,

Potential Demand for Apple Hard Cider in Michigan

This paper reports the results of market place and consumer research for hard apple cider. The objectives of the research were to determine potential demand for and constraints to the supply of hard apple cider in Michigan. The research was undertaken using on-site and focus group interviews of managers of microbrews, brew-pubs, restaurants and retailers. The research revealed much enthusiasm over HC market potential among purveyors interviewed, particularly among microbrewers, brew-pubs, and specialty retailers. Respondents estimated the potential value of Michigan hard cider market to be relatively small but significant-from 1-5% of purveyors' alcohol sales, and as high as 20% in some cases. Potential hard cider consumers are diverse and include 1) traditional microbrew connoisseurs, 2) young, adventurous drinkers who are driving the "malternative" trend, and 3) the "significant others" and other companions of microbrew connoisseurs who seek an alternative to the heavier beers served in microbrews. While microbrew connoisseurs are likely to gravitate toward a more traditional, drier cider, "malternative" drinkers and the "significant others" are likely to prefer a sweeter product. Compared to other respondents, microbrews showed particular enthusiasm for producing and marketing hard cider. While microbrews and brewpubs would market the product on tap, restaurants and retailers will more likely market a bottled product. The primary impediment to consumer acceptance of the product is a lack of familiarity, and numerous promotional efforts that could overcome these constraints were suggested. Demand for hard cider is likely to be somewhat seasonal, however there are numerous hard cider themes and products that might serve to mitigate this seasonality. While strong enthusiasm for the marketability of a Michigan-brewed product was expressed by respondents, an organic or "all-natural" product was not felt to have potential due to both demand and supply constraints. The primary constraints to supply of hard cider in general are the cost and availability of ingredients, as well as regulatory and taxation issues.Demand and Price Analysis,

The Decision to Direct Market: An Analysis of Small Fruit and Specialty-Product Markets in Virginia

Farmers are increasingly interested in high-value alternatives to commodity production. Direct marketing is a potentially attractive marketing alternative, having been shown to offer increased net incomes to farmers. Nevertheless, there is a dearth of literature on the determinants of the decision to direct market. This paper uses an ordered logit regression to analyze how farm size, the importance of high-value crops, organic production, experience, and demographic factors affect a producer’s reliance on direct markets. The results show that farm size, high-value crop production, non-certified organic production methods, and household size are determinants of the share of total farm output sold through direct marketing outlets.Marketing,

Scale, Scope, and Specialization Effects on Retailers’ Procurement Strategies: Evidence from the Fresh Produce Markets of São Paulo

Worldwide, the emergence of large supermarket chains in food retail markets is often associated with the marginalization of smaller retailers. A notable exception exists in Brazil, however, where small retailers have held their place in the market and recently even gained ground. The literature investigating how retail concentration has affected agrifood chains has focused activities of the largest retail chains, implicitly holding the scale, scope and specialization of retailers’ input needs constant, and overlooking the influence of these factors on retailers’ procurement strategies. This paper tests hypotheses regarding these variables’ effects on retailers’ fresh produce procurement strategies. Data is drawn from a survey of retailers in metropolitan São Paulo. The research results provide insight into factors underlying retailers’ procurement strategy choices and tradeoffs among options. The results support the fundamental hypothesis of the paper that research on the competitive strategies of smaller retailers in a context of market domination by large retailers should not focus exclusively on the degree to which the smaller retailers imitate the larger retailers rather it should account for the possibility that the underlying characteristics of the retailers may make diverse competitive strategies appropriate.scale, scope, specialization, procurement strategy, fresh produce, retail, Political Economy, L22,

The Influence of Endogenous Nutrition Knowledge on Consumers’ Willingness-To-Pay for Grass-Fed Beef

The relationship between nutrition knowledge and consumers’ food behavior has been debated for years. This may be partially attributed to the difficulty introduce by endogeneity of nutrition knowledge in econometric modeling. Using grass-fed beef as a vehicle, this paper investigates the impacts of consumers’ nutrition knowledge on their willingness to pay by accommodating the endogeneity problem using instrumental variable approach. Our results suggest that consumers’ nutrition knowledge significantly influences their willingness to pay for grass-fed beef. Gender and education are influential factors of consumers’ nutrition knowledge level.Nutrition Knowledge, Endogeneity, Willingness to Pay, Agribusiness, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, Marketing,

Taste and Visual Influences on Hispanic Consumers' Preferences and Willingness-to-Pay for Pasture-Fed Beef

Experimental Economics methods are used to determine Hispanic consumers’ sensory acceptance of pasture-fed beef and evaluate visual and taste influences on their overall preferences and willingness-to-pay (WTP). Two hundred and thirty-one Hispanic consumers in four experimental sites in Virginia participated in a laboratory experimental procedure where they visually examined and tasted pasture-fed and conventionally produced grain-fed beef, and then participated in a non-hypothetical Multiple Price Lists (MPL) experiment to determine their WTP. Hispanic consumers perceived significant differences between pasture-fed and grain-fed beef’s appearance and taste. Visual and taste acceptances are closely correlated to and significantly influence overall preferences. More than fifty percent of Hispanic consumers prefer pasture-fed beef and the majority of them consistently are willing to pay a price premium. Approximately, half consumers who generally prefer pasture-fed beef consistently consider the appearance and taste of pasture-fed beef more favorable but another half of them indicated discrepant visual and taste acceptances. Nevertheless, this inconsistency doesn’t lead to a lower WTP for pasture-fed beef.Pasture-Fed Beef, Experimental Economics, Multiple Price Lists, Preference, Willingness-to-pay, Agribusiness, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Livestock Production/Industries, Marketing,

Scale, scope, and specialization effects on retailers’ procurement strategies: evidence from the fresh produce markets of São Paulo

Ao redor do globo, a emergência de grandes cadeias de supermercado em mercados alimentícios de varejo é frequentemente associada à marginalização de varejistas menores. Uma notável exceção existe no Brasil, porém, onde pequenos varejistas têm mantido sua posição no mercado e, recentemente, até ganharam espaço. A literatura investigando como a concentração do varejo afeta cadeias produtivas de alimentos como a concentração no varejo tem afetado as cadeias de agroalimentos tem enfocado atividades das cadeias de varejo maiores. Fatores como escala, escopo e especialização dos varejistas em termos de insumos têm sido mantidos implicitamente constantes, ignorando a influência desses fatores nas estratégias de compra dos varejistas..Os dados foram obtidos junto a varejistas da São Paulo metropolitana. Os resultados da pesquisa consideram atores responsáveis por estratégias varejistas de obtenção e o tradeoffs entre as opções, bem como justificam a hipótese essencial do artigo de que pesquisa acerca das estratégias competitivas de varejo, em um contexto de dominação de mercado por grandes varejistas, não deveria enfocar exclusivamente o matiz com o qual varejistas menores imitam os maiores. Antes deveria contemplar a possibilidade de as características inerentes aos varejistas tornarem adequadas estratégias competitivas divergentes.Worldwide, the emergence of large supermarket chains in food retail markets is often associated with the marginalization of smaller retailers. A notable exception exists in Brazil, however, where small retailers have held their place in the market and recently even gained ground. The literature investigating how retail concentration has affected agrifood chains has focused activities of the largest retail chains, implicitly holding the scale, scope and specialization of retailers’ input needs constant, and overlooking the influence of these factors on retailers’ procurement strategies. This paper tests hypotheses regarding these variables’ effects on retailers’ fresh produce procurement strategies. Data is drawn from a survey of retailers in metropolitan São Paulo. The research results provide insight into factors underlying retailers’ procurement strategy choices and tradeoffs among options. The results support the fundamental hypothesis of the paper that research on the competitive strategies of smaller retailers in a context of market domination by large retailers should not focus exclusively on the degree to which the smaller retailers imitate the larger retailers rather it should account for the possibility that the underlying characteristics of the retailers may make diverse competitive strategies appropriate

RELIEF AND DEVELOPMENT: BEAN SEED MARKETS IN HONDURAS AFTER HURRICANE MITCH

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