An Assessment of Market Strategies for Small-scale Produce Growers

Document Type

Article

Journal/Book Title/Conference

International Food and Agribusiness Management Review

Volume

17

Issue

3

Publication Date

2014

First Page

187

Last Page

204

Abstract

This study examines marketing strategies for small-scale producers by comparing the risk and return properties of direct (farmers’ markets) and wholesale marketing channels. Farmers’ market prices for fresh produce were collected at sixteen markets in Utah and Colorado. San Francisco terminal market prices were used to represent wholesale prices. A simulation model combined price, yield, and market risk to construct probability distribution functions showing the likelihood of differing levels of profit for eleven marketing options. The results show that riskaverse producers prefer a combination of channels (40% direct/60% wholesale), while risk neutral producers prefer to market exclusively through farmers’ markets.

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