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

Author

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  • 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.

Suggested Citation

  • Park Timothy & Lohr Luanne, 2006. "Choices of Marketing Outlets by Organic Producers: Accounting for Selectivity Effects," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 4(1), pages 1-26, July.
    • Handle: RePEc:bpj:bjafio:v:4:y:2006:i:1:n:4
    DOI: 10.2202/1542-0485.1129
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    References listed on IDEAS

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    2. Veldstra, Michael D. & Alexander, Corinne E. & Marshall, Maria I., 2014. "To certify or not to certify? Separating the organic production and certification decisions," Food Policy, Elsevier, vol. 49(P2), pages 429-436.
    3. Pagare, Dewang & Biswas, Indranil & Agrahari, Amit & Ghosh, Sriparna, 2023. "A small farmer’s market choice in the presence of multiple markets: The Indian case," European Journal of Operational Research, Elsevier, vol. 311(2), pages 739-753.
    4. Kim, Man-Keun & Curtis, Kynda R. & Yeager, Irvin, 2014. "An Assessment of Market Strategies for Small-Scale Produce Growers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(3), pages 1-18, September.
    5. Aashish Argade & Laha, A. K., 2018. "Marketplace Options in an Emerging Economy Local Food Marketing System- Producers’ Choices, Choice Determinants and Requirements," IIMA Working Papers WP 2018-01-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    6. Vosloo, Jodie, 2021. "A profitability and risk assessment of market strategies for potato producers in South Africa," Research Theses 334757, Collaborative Masters Program in Agricultural and Applied Economics.
    7. Bellows Anne C. & Onyango Benjamin & Diamond Adam & Hallman William K, 2008. "Understanding Consumer Interest in Organics: Production Values vs. Purchasing Behavior," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 6(1), pages 1-31, May.
    8. Nyaupane, Narayan & Gillespie, Jeffrey & McMillin, Kenneth, 2016. "The Marketing of Meat Goats in the US: What, Where, and When?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(3), pages 1-17, November.
    9. Maria Raimondo & Francesco Caracciolo & Concetta Nazzaro & Giuseppe Marotta, 2021. "Organic Farming Increases the Technical Efficiency of Olive Farms in Italy," Agriculture, MDPI, vol. 11(3), pages 1-15, March.
    10. Anna Carbone, 2018. "Foods and Places: Comparing Different Supply Chains," Agriculture, MDPI, vol. 8(1), pages 1-12, January.
    11. Leonardo Cei & Gianluca Stefani & Luca Rossetto, 2024. "Twenty Years of Socio-Economic Research on Organic Agriculture Across the World: Looking at the Past to Be Ready for the Future," Agriculture, MDPI, vol. 14(11), pages 1-23, October.
    12. Muthini, Davis Nguthi, 2015. "An assessment of mango famer's choice of marketing channels in Makueni, Kenya," Research Theses 204866, Collaborative Masters Program in Agricultural and Applied Economics.
    13. 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.
    14. Gillespie, Jeffrey & Sitienei, Isaac & Bhandari, Basu & Scaglia, Guillermo, 2016. "Grass-Fed Beef: How is it Marketed by US Producers?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(2), pages 1-18, May.

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