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Competitive Advantages in Sourcing and Marketing Local Foods by Food Cooperatives

Author

Listed:
  • Katchova, Ani L.
  • Woods, Timothy A.

Abstract

This study examines whether food co-ops have competitive advantages or disadvantages in sourcing and promoting local foods using survey data from general managers of food co-ops in the United States. A principal component analysis was used to extract four factors: merchandising, farmer assistance, price/quality negotiations, and farmer development. A cluster analysis assigned food co-ops into three areas based on their competitive advantages. Results show that food co-ops assigned to the cluster with slight competitive disadvantages tend to be smaller, while food co-ops assigned to the two clusters with competitive advantages tend to be larger and more likely to be located in the Midwest. Food co-ops have slight competitive advantages when sourcing and promoting local foods when compared to other supermarkets.

Suggested Citation

  • Katchova, Ani L. & Woods, Timothy A., 2016. "Competitive Advantages in Sourcing and Marketing Local Foods by Food Cooperatives," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 34(2).
  • Handle: RePEc:ags:jloagb:296924
    DOI: 10.22004/ag.econ.296924
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