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Food Marketing In An Electronic Age: Implications For Agricultural Producers

Author

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  • Kinsey, Jean D.
  • Senauer, Benjamin

Abstract

The most efficient food delivery system in the world is becoming even more so with new electronic information gathered at the checkout counter and quickly transmitted to food distributors and manufacturers. In order to meet new competition in the retail market for food and food services, traditional grocery stores and their suppliers are redesigning how they present, order and distribute products. This effort is called Efficient Consumer Response (ECR). It is a system whereby consumer preferences, expressed through their purchases, are revealed to food manufacturers and then back to producers. Commodities with special characteristics for preferred types of food are pulled out of the food and agricultural system as opposed to being pushed out in bulk with the hope that someone will buy them. The implications for agriculture are that farmers will increasingly be producing commodities with specific attributes called for by food processors who are responding to retail demand. Traditional patterns of farming will change; more product will be produced for niche markets and for international tastes. More value will be added to the raw commodity closer to the land through genetics, breeding, and special attention to production techniques. There will be higher pay-off for the entrepreneur on the farm, but the risks will increase as well as the pace of change.

Suggested Citation

  • Kinsey, Jean D. & Senauer, Benjamin, 1996. "Food Marketing In An Electronic Age: Implications For Agricultural Producers," Working Papers 14303, University of Minnesota, The Food Industry Center.
    • Handle: RePEc:ags:umrfwp:14303
    DOI: 10.22004/ag.econ.14303
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    Citations

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    Cited by:

    1. Johansson, Robert Charles, 1997. "Wage structure in the supermarket industry 1984-1993," Faculty and Alumni Dissertations 246441, University of Minnesota, Department of Applied Economics.
    2. Robert C. Johansson & Jay S. Coggins, 2002. "Union Density Effects in the Supermarket Industry," Journal of Labor Research, Transaction Publishers, vol. 23(4), pages 673-684, October.
    3. Wooseung Jang & Cerry Klein, 2011. "Supply chain models for small agricultural enterprises," Annals of Operations Research, Springer, vol. 190(1), pages 359-374, October.
    4. Vickner, Steven S. & Davies, Stephen P. & Fulton, Joan R. & Vantreese, Valerie L., 2000. "Estimating Market Power And Pricing Conduct For Private-Label And National Brands In A Product-Differentiated Oligopoly: The Case Of A Frozen Vegetable Market," Journal of Food Distribution Research, Food Distribution Research Society, vol. 31(2), pages 1-13, July.
    5. Heim, Gregory R. & Sinha, Kingshuk K., 1999. "Design And Delivery Of Electronic Services: Implications For Customer Value In Electronic Food Retailing," Working Papers 14341, University of Minnesota, The Food Industry Center.
    6. Brown, Jason P. & Goetz, Stephan J. & Fleming, David A., 2012. "Multifunctional Agriculture and Farm Viability in the United States," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 126929, Agricultural and Applied Economics Association.
    7. Binkley, James K. & Connor, John M., 1996. "Market Competition And Metropolitan-Area Grocery Prices," Working Papers 25988, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.

    More about this item

    Keywords

    Agribusiness; Marketing;

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