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

Author

Listed:
  • 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
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    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. 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 (IFAMA), vol. 19(2).
    4. 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.
    5. 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), November.
    6. repec:gam:jagris:v:8:y:2018:i:1:p:6-:d:124942 is not listed on IDEAS
    7. 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.

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