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Marketing preferences of small-scale farmers in the context of new agrifood systems: a stated choice model

Author

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  • Jose Blandon

    (Department of Food, Agricultural and Resource Economics, University of Guelph, Guelph, N1G 2W1, Ontario, Canada)

  • Spencer Henson

    (Department of Food, Agricultural and Resource Economics, University of Guelph, Guelph, N1G 2W1, Ontario, Canada)

  • Towhidul Islam

    (Department of Marketing and Consumer Studies, University of Guelph, Guelph, N1G 2W1, Ontario, Canada)

Abstract

Considering the dynamic changes in agrifood systems in developing countries, this study uses a stated choice model to explore the marketing preferences of small-scale producers of fresh fruits and vegetables in Honduras. Eight attributes, proposed in hypothetical contracts to farmers, are evaluated. The results suggest that farmers have strong marketing preferences associated with new supply chains, such as prearranging prices and quantities with buyers, but have remaining preferences for some attributes of traditional spot markets, such as the lack of grading produce, receiving cash payments, lack of delivery schedules, ability to sell at the farm gate, and ability to sell individually. Further, farmers prefer market channels that do not require major upfront investments. The results suggest that the traditional marketing preferences of farmers could impede participation of small-holders in emerging supply chains and take advantage of the potential opportunities that new agrifood supply chains can offer. [JEL Code: Q13 O14]. © 2009 Wiley Periodicals, Inc.

Suggested Citation

  • Jose Blandon & Spencer Henson & Towhidul Islam, 2009. "Marketing preferences of small-scale farmers in the context of new agrifood systems: a stated choice model," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 251-267.
  • Handle: RePEc:wly:agribz:v:25:y:2009:i:2:p:251-267
    DOI: 10.1002/agr.20195
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    References listed on IDEAS

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    1. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: The case of sweet pepper in Thailand," Food Policy, Elsevier, vol. 36(5), pages 667-677.
    2. Michelson, Hope & Reardon, Thomas & Perez, Francisco, 2012. "Small Farmers and Big Retail: Trade-offs of Supplying Supermarkets in Nicaragua," World Development, Elsevier, vol. 40(2), pages 342-354.
    3. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: the case of sweet pepper in Thailand," GlobalFood Discussion Papers 108349, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    4. Hope C. Michelson, 2013. "Small Farmers, NGOs, and a Walmart World: Welfare Effects of Supermarkets Operating in Nicaragua," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(3), pages 628-649.
    5. Susanne Väth & Simone Gobien, 2014. "Life Satisfaction, Contract Farming and Property Rights: Evidence from Ghana," MAGKS Papers on Economics 201415, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    6. Arouna, Aminou & Adegbola, Patrice Y. & Raphael, Babatunde & Diagne, Aliou, 2015. "Contract farming preferences by smallholder rice producers in Africa: a stated choice model using mixed logic," 2015 Conference, August 9-14, 2015, Milan, Italy 210957, International Association of Agricultural Economists.
    7. Susanne Väth & Michael Kirk, 2014. "Do property rights and contract farming matter for rural development? Evidence from a large-scale investment in Ghana," MAGKS Papers on Economics 201416, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    8. Sekabira, Haruna & Qaim, Matin, 2016. "Mobile Phone Technologies, Agricultural Production Patterns, and Market access in Uganda," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246310, African Association of Agricultural Economists (AAAE).
    9. Bensemann, Jessica & Shadbolt, Nicola, 2015. "Farmers’ Choice of Marketing Strategy: A Study of New Zealand Lamb Producers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 0(Issue 3), pages 1-33, September.
    10. Ochieng, Dennis O. & Veettil, Prakashan C. & Qaim, Matin, 2017. "Farmers’ preferences for supermarket contracts in Kenya," Food Policy, Elsevier, vol. 68(C), pages 100-111.
    11. Wanglin Ma & Awudu Abdulai, 2016. "Linking apple farmers to markets: Determinants and impacts of marketing contracts in China," China Agricultural Economic Review, Emerald Group Publishing, vol. 8(1), pages 2-21, February.
    12. Schuster, Monica & Maertens, Miet, 2013. "Do private standards create exclusive supply chains? New evidence from the Peruvian asparagus export sector," Food Policy, Elsevier, vol. 43(C), pages 291-305.
    13. Gelaw, Fekadu & Speelman, Stijn & Van Huylenbroeck, Guido, 2016. "Farmers’ marketing preferences in local coffee markets: Evidence from a choice experiment in Ethiopia," Food Policy, Elsevier, vol. 61(C), pages 92-102.
    14. Islam, Towhidul & Meade, Nigel, 2013. "The impact of attribute preferences on adoption timing: The case of photo-voltaic (PV) solar cells for household electricity generation," Energy Policy, Elsevier, vol. 55(C), pages 521-530.
    15. Atiş, Ela & Miran, Bulent & Bektaȿ, Zerrin & Ciftci, Kenan & Karabat, Selcuk, 2013. "An Analysis of Marketing Preferences of Sultana Producers in Turkey in Terms of Sustainable Market Power," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152136, Australian Agricultural and Resource Economics Society.
    16. Alim Setiawan Slamet & Akira Nakayasu & Masahiro Ichikawa, 2017. "Small-Scale Vegetable Farmers’ Participation in Modern Retail Market Channels in Indonesia: The Determinants of and Effects on Their Income," Agriculture, MDPI, Open Access Journal, vol. 7(2), pages 1-16, February.
    17. Vlaeminck, Pieter & Vranken, Liesbet & Van Den Broeck, Goedele & Vande Velde, Katrien & Raymaekers, Karen & Maertens, Miet, 2015. "Farmers’ preferences for Fair Trade contracting in Benin," Working Papers 225931, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    18. Sekabira, Haruna & Qaim, Matin, 2016. "Mobile Money, Agricultural Marketing, and Off-Farm Income in Uganda," GlobalFood Discussion Papers 234998, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    19. Banterle, Alessandro & Carraresi, Laura & Cavaliere, Alessia, 2011. "Price Setting in Food SMEs: Which Role for Marketing Capability? An Empirical Analysis in Italy," 2011 International European Forum, February 14-18, 2011, Innsbruck-Igls, Austria 122000, International European Forum on System Dynamics and Innovation in Food Networks.
    20. Mailu, Stephen & Wachira, Ann, 2009. "The influence of prices on market participation decisions of indigenous poultry farmers in four districts of Eastern Province, Kenya," MPRA Paper 21312, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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