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Factors underlying farm diversification: the case of Western Australia’s olive farmers

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  • Jeremy Northcote
  • Abel Alonso

Abstract

The growth of niche markets in rural industries has been one response to the restructuring of established agricultural industries in developed countries. In some cases entry into niche markets is part of a diversification of activities from other areas of farm-based production or services. In other cases, operators have sought to diversify from niche market production into other areas, such as on-site selling and agritourism. This paper outlines the findings of an exploratory qualitative study of the factors that olive farmers in Western Australia take into account when considering diversification, with a special focus on diversification into servicing visitors in the form of on-site selling and agritourism. Face-to-face and telephone interviews were conducted among 23 small olive growing operations located in the main olive growing region of Western Australia. Decision-making is shown to involve an assessment of risk, which is shaped by their appraisal of economic conditions, market opportunities, access to resources (including labor), and lifestyle factors. The argument is made that a fuller understanding of diversification is gained by studying both those who seek to diversify and those who do not, in contrast to most previous research that has only focussed on those who diversify. Also argued is that diversification is best seen as a continuum of adjustment strategies, which is guided by a combination of economic need, risk assessment (based largely on resource access), market potential, and lifestyle factors. Copyright Springer Science+Business Media B.V. 2011

Suggested Citation

  • Jeremy Northcote & Abel Alonso, 2011. "Factors underlying farm diversification: the case of Western Australia’s olive farmers," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 28(2), pages 237-246, June.
    • Handle: RePEc:spr:agrhuv:v:28:y:2011:i:2:p:237-246
    DOI: 10.1007/s10460-010-9274-x
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    References listed on IDEAS

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    1. Matthew Tonts & John Selwood, 2003. "Niche Markets, Regional Diversification and the Reinvention of Western Australia's Sandalwood Industry," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 94(5), pages 564-575, December.
    2. Simon Swaffield & John Fairweather, 1998. "In Search of Arcadia: The Persistence of the Rural Idyll in New Zealand Rural Subdivisions," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 41(1), pages 111-128.
    3. Douglas W. Naffziger & Jeffrey S. Hornsby & Donald F. Kuratko, 1994. "A Proposed Research Model of Entrepreneurial Motivation," Entrepreneurship Theory and Practice, , vol. 18(3), pages 29-42, April.
    4. Michael Mascarenhas, 2001. "Farming systems research: Flexible diversification of a small family farm in southeast Michigan," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 18(4), pages 391-401, December.
    5. Evan D. Fraser, 2006. "Crop diversification and trade liberalization: Linking global trade and local management through a regional case study," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 23(3), pages 271-281, October.
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    1. Abdul-Salam, Yakubu & Roberts, Deborah, 2018. "Determinants of off-farm work and its effect on agricultural input intensity," 92nd Annual Conference, April 16-18, 2018, Warwick University, Coventry, UK 273486, Agricultural Economics Society.
    2. Juan Antonio Parrilla-González & Eva María Murgado-Armenteros & Francisco José Torres-Ruiz, 2020. "Characterization of Olive Oil Tourism as a Type of Special Interest Tourism: An Analysis from the Tourist Experience Perspective," Sustainability, MDPI, vol. 12(15), pages 1-10, July.
    3. Viktoria Graskemper & Xiaohua Yu & Jan‐Henning Feil, 2021. "Analyzing strategic entrepreneurial choices in agriculture—Empirical evidence from Germany," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 569-589, July.
    4. Gerlach, Sibylle & Feil, Jan-Henning, 2022. "Erfolgsfaktoren von Agrifood-Startups – erste empirische Erkenntnisse aus Deutschland," 62nd Annual Conference, Stuttgart, Germany, September 7-9, 2022 329615, German Association of Agricultural Economists (GEWISOLA).
    5. Westbrooke, Victoria & Nuthall, Peter, 2017. "Why small farms persist? The influence of farmers’ characteristics on farm growth and development. The case of smaller dairy farmers in NZ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(4), October.

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