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Produce Marketing and Retail Buying Practices

Author

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  • Paul M. Patterson
  • Timothy J. Richards

Abstract

Produce suppliers have raised concerns over retailer demands for slotting fees and other promotional allowances. These business practices have long existed in packaged goods trade, but are new to produce, which suppliers attribute to recent retail consolidation. Others argue that these allowances are consistent with the a competitive market, which is confronted with an enormous number of new products, most of which fail. Questions on the applicability of existing antitrust laws has limited their use. Eventually, the situation may rectify itself as more retailers adopt new business strategies that obviate the need for slotting fees and allowances.

Suggested Citation

  • Paul M. Patterson & Timothy J. Richards, 2000. "Produce Marketing and Retail Buying Practices," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 22(1), pages 160-171.
  • Handle: RePEc:oup:revage:v:22:y:2000:i:1:p:160-171.
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    File URL: http://hdl.handle.net/10.1111/1058-7195.00012
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    Citations

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    Cited by:

    1. Winfree, Jason A. & McCluskey, Jill J. & Mittelhammer, Ronald C. & Gutman, Paula, 2004. "Seasonal Oligopoly Power In The D'Anjou Pear Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 35(2), pages 1-10, July.
    2. Gomez, Miguel I. & Rao, Vithala R. & Yuan, Hong, 2008. "Effects of Horizontal and Vertical Market Power on Trade Promotion Budget and Allocation in the US Supermarket Industry: An Experimental and Empirical Analysis," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6247, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Davis, Kathy J. & Thornsbury, Suzanne & Ward, Ronald W., 2002. "Consolidation In The Fresh Florida Grapefruit Packing Industry," 2002 Annual meeting, July 28-31, Long Beach, CA 19815, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Thornsbury, Suzanne & Davis, Kathy J. & Ward, Ronald W., 2005. "Fresh Grapefruit Supply-Chain Adjustments: Consolidation in Produce Packing?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 36(3), pages 1-12, November.
    5. Lee, Cheryl Hill & Schluter, Gerald E., 2002. "Why Do Food Manufacturers Introduce New Products?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 33(1), pages 1-10, March.
    6. DeVuyst, Cheryl Sinn, 2002. "Non-Credible Information Flows Between Food Manufacturers And Retailers," Journal of Food Distribution Research, Food Distribution Research Society, vol. 33(3), pages 1-7, November.
    7. Schaffner, David J., 2002. "United States Produce Markets In Transition- Today And Tomorrow," Journal of Food Distribution Research, Food Distribution Research Society, vol. 33(2), pages 1-6, July.

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