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

Author

Listed:
  • Monson, Joseph
  • Mainville, Denise Y.
  • Kuminoff, Nicolai V.

Abstract

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.

Suggested Citation

  • Monson, Joseph & Mainville, Denise Y. & Kuminoff, Nicolai V., 2008. "The Decision to Direct Market: An Analysis of Small Fruit and Specialty-Product Markets in Virginia," Journal of Food Distribution Research, Food Distribution Research Society, vol. 39(2), pages 1-11, July.
    • Handle: RePEc:ags:jlofdr:55971
    DOI: 10.22004/ag.econ.55971
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    Citations

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    Cited by:

    1. Paudel, Krishna P. & Park, Timothy A. & Pandit, Mahesh, 2017. "U.S. Farmers' Decision to Choose Direct Sales Channel: A Fractional Seemingly Unrelated Semiparametric Model," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258370, Agricultural and Applied Economics Association.
    2. Jessica L. Thomson & Tameka I. Walls & Alicia S. Landry, 2022. "Mississippi Farmers’ Interest in and Experience with Farm to School," IJERPH, MDPI, vol. 19(13), pages 1-12, June.
    3. Mohd Suhaimi, Nurul Aisyah & de Mey, Yann & Oude Lansink, Alfons, 2017. "A transaction cost analysis of Malaysian dairy farmers' marketing channel selection," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261436, European Association of Agricultural Economists.
    4. Popp, Michael & Mahamba, Grace & Thompson, Jada & Malone, Trey & Popp, Jennie, 2023. "Marketing Strategy Selection for Small-Scale Fruit and Vegetable Growers: Lessons from the Mid-Southern United States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 54(3), November.
    5. Wille, Stefan Clemens & Barklage, Britta & Spiller, Achim & von Meyer-Höfer, Marie, 2018. "Challenging factors of farmer-to-consumer direct marketing: An empirical analysis of German livestock owners," DARE Discussion Papers 1807, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    6. Gedikoglu, Haluk & Parcell, Joe L., 2014. "Variation of Consumer Preferences Between Domestic and Imported Food: The Case of Artisan Cheese," Journal of Food Distribution Research, Food Distribution Research Society, vol. 45(2), pages 1-21, July.
    7. 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.
    8. 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.
    9. Pei-An LIAO & Hung-Hao CHANG & Junlin HE & Kannika SAELIW, 2017. "Diversification of marketing strategies among small farms: empirical evidence from family farms in Taiwan," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(11), pages 493-501.
    10. Uematsu, Hiroki & Mishra, Ashok K., 2011. "Use of Direct Marketing Strategies by Farmers and Their Impact on Farm Business Income," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(1), pages 1-19, April.
    11. Bignell, Wesley, 2011. "Comparing Locally Oriented and Mainstream Farming: Observations from the Oregon Blueberry Industry," Western Economics Forum, Western Agricultural Economics Association, vol. 10(2), pages 1-9.
    12. Enthoven, Laura & Van den Broeck, Goedele, 2021. "Local food systems: Reviewing two decades of research," Agricultural Systems, Elsevier, vol. 193(C).
    13. Brian Lee & Jhih‐Yun Liu & Hung‐Hao Chang, 2020. "The choice of marketing channel and farm profitability: Empirical evidence from small farmers," Agribusiness, John Wiley & Sons, Ltd., vol. 36(3), pages 402-421, June.
    14. Yael Perlman & Yaacov Ozinci & Sara Westrich, 2022. "Pricing decisions in a dual supply chain of organic and conventional agricultural products," Annals of Operations Research, Springer, vol. 314(2), pages 601-616, July.
    15. Timothy Park & Ashok K. Mishra & Shawn J. Wozniak, 2014. "Do farm operators benefit from direct to consumer marketing strategies?," Agricultural Economics, International Association of Agricultural Economists, vol. 45(2), pages 213-224, March.
    16. Sene, Seydina & Paudel, Krishna P. & Park, Timothy A., 2016. "The Changing Structure of Retail Food Stores, Direct Marketing (DM) and Its Impact on Farmers’ Financial Performance," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235736, Agricultural and Applied Economics Association.
    17. Demko, Iryna & Plakias, Zoe & Katchova, Ani, "undated". "How do farmers compose their portfolio of local food marketing channels?," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259931, Agricultural and Applied Economics Association.
    18. Mugenzi, Patrice & Owour, George & Bett, Hillary K., 2021. "Factors Influencing Smallholder Potato Farmers’ Choice Decisions of Market Outlets in Musanze and Nyabihu Districts, Rwanda: A Multivariate Probit Model," 2021 Conference, August 17-31, 2021, Virtual 315163, International Association of Agricultural Economists.
    19. Alessandro Corsi & Silvia Novelli & Giacomo Pettenati, 2018. "Producer and farm characteristics, type of product, location: Determinants of on‐farm and off‐farm direct sales by farmers," Agribusiness, John Wiley & Sons, Ltd., vol. 34(3), pages 631-649, June.

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