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Choices of Marketing Outlets by Organic Producers: Accounting for Selectivity Effects

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Author Info

  • Park Timothy

    (University of Georgia)

  • Lohr Luanne

    (University of Georgia)

Abstract

Organic farmers have traditionally relied on a variety of marketing channels, suggesting that earned organic income will depend on the farmer's experience in producing and selling organic products and their comparative advantage in bargaining and marketing skills. A discrete choice model of the choice of marketing channels is developed which accounts for the role of selectivity bias. Farmers who are most likely to sell through a diversified set of outlets or to use a single outlet have increased earnings relative to farmers who overlook these marketing options. Producers with less experience gravitate toward use of a single marketing outlet while more experienced producers tend to diversify and market through all three channels. Constraints in selling organic products tends tend to have a negative effect on farm income.

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Bibliographic Info

Article provided by De Gruyter in its journal Journal of Agricultural & Food Industrial Organization.

Volume (Year): 4 (2006)
Issue (Month): 1 (July)
Pages: 1-26

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Handle: RePEc:bpj:bjafio:v:4:y:2006:i:1:n:4

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Web page: http://www.degruyter.com

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Web: http://www.degruyter.com/view/j/jafio

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Cited by:
  1. Torres, Ariana P. & Marshall, Maria I. & Alexander, Corinne E., 2013. "Does Proximity Determine Organic Certification Among Farmers Using Organic Practices?," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150607, Agricultural and Applied Economics Association.

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