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An Innovative Marketing Model for Fresh Produce in China: Farmer-Supermarket Direct-Purchase

In: Organised Retailing and Agri-Business

Author

Listed:
  • Dinghuan Hu

    (CAAS)

  • Fred Gale

    (Economic Research Service)

Abstract

“Farmer-Supermarket Direct-Purchase” is a new model for connecting small Chinese farmers with the modern retail markets. Supermarkets purchase agro-products directly from small-scale producers, using a farmer cooperative or agricultural enterprise as an intermediary. Matching small producers with a modern retailer ensures a stable market for farm produce. Reducing the number of middlemen between producer and retailer lowers procurement costs for retailers and improves transmission of food safety standards and quality control assurances through the supply chain. Supermarkets arrange training to help small-scale farmers solve various problems, and help them adapt to a new purchase environment. The model has spread in China through a combination of private sector initiative and government support. This chapter provides guidance to supermarkets, cooperatives, and producers who wish to replicate the model in other developing countries.

Suggested Citation

  • Dinghuan Hu & Fred Gale, 2016. "An Innovative Marketing Model for Fresh Produce in China: Farmer-Supermarket Direct-Purchase," India Studies in Business and Economics, in: N. Chandrasekhara Rao & R. Radhakrishna & Ram Kumar Mishra & Venkata Reddy Kata (ed.), Organised Retailing and Agri-Business, edition 1, chapter 7, pages 119-138, Springer.
  • Handle: RePEc:spr:isbchp:978-81-322-2476-1_7
    DOI: 10.1007/978-81-322-2476-1_7
    as

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