Marketing And Distribution Of Quality Products: A Dutch Example

It is becoming more difficult in the Netherlands to sell homogeneous products at a moderate price. To keep a sustainable position in the market, it is necessary to develop new products and new production systems. The basis for this development has to be a combination of changes in markets and in the capabilities of firms and farms. Consumers want to choose from a large variety of good-quality products. Farmers – especially those with a medium or small farm – are looking for methods to improve the added value of their farm. The objectives of both farmers and consumers could be fulfilled by producing high-quality speciality products. However, the marketing and distribution of regional products requires large efforts in the field of horizontal and vertical cooperation and the right choice of marketing channel and marketing concepts. For many Dutch farmers this implies learning new skills. Given the differences in optimal scale between farmers, processors and retailers, many farmers have formed producers' groups. In this paper, we approach the problem by means of theoretical frameworks about chain development, horizontal cooperation and management. This leads us to formulate a number of hypotheses. We discuss a number of cases to see whether these hypotheses are supported by real-life examples, and then draw a number of conclusions.