scholarly journals Community-Supported Agriculture Marketing Performance: Results from Pilot Market Channel Assessments in Colorado

2019 ◽  
Vol 11 (10) ◽  
pp. 2950 ◽  
Author(s):  
Becca B. R. Jablonski ◽  
Martha Sullins ◽  
Dawn Thilmany McFadden

Due in large part to rising consumer interest, the number of farmers and ranchers selling through local food markets is growing. Community-supported agriculture (CSA) is a unique local food channel adopted by producers that was initially established as a strategy for producers to directly benefit from the season-long investments of buyers who align with their community-focused mission. Although the U.S. Department of Agriculture has long collected data to improve farm performance, information on specific marketing channels is missing, and in response, this research provides some of the first evidence of the heterogeneity of performance among CSAs. In a pilot approach to understanding the economics of CSAs relative to other direct marketing channels, we conducted an assessment process, incorporating 42 farms in Colorado between June 2016 and October 2017. Results showed that farms that incorporated CSA sales in their direct market portfolios tended to be smaller in scale and utilize more diverse markets. Although these CSA farms have lower average weekly sales, they have the highest average marketing profit margins compared to other direct market channels.

2009 ◽  
Vol 25 (1) ◽  
pp. 24-34 ◽  
Author(s):  
Shermain D. Hardesty ◽  
Penny Leff

AbstractDirect marketing is a popular marketing practice among smaller producers in the United States. We conducted detailed case studies of three organic farming operations of different sizes and compared their marketing costs and profitability in alternative marketing channels. We classified marketing-related activities into three categories: packing and storage, transportation, and selling and administration. By measuring the costs for labor, purchased goods and services, and capital assets associated with these marketing activities, we determined that there are significant variations in marketing costs across marketing channels. For each of our three case-study farms, marketing costs per dollar of revenue were lowest in the wholesale channel and highest in the farmers' market channel. Significant labor costs for the selling activity and transportation expenses offset the higher prices and minimal packaging costs associated with farmers' markets. Profitability can also be significantly affected by marketing factors, such as packing and grading standards, and product that is used for sampling and consumer premiums. Our research demonstrates that the higher prices that producers earn from direct marketing rather than wholesaling are not pure profit; the price premiums are compensation for the costs they incur when direct marketing their produce. Direct marketing channels, such as farmers' markets and Community Supported Agriculture (CSAs), can enable smaller farmers to build financially viable operations, by gaining access to markets, growing their farming operations and reducing their marketing risk. However, to achieve this success, farmers must manage their marketing costs as well as their production costs.


Author(s):  
Grace Bachman ◽  
Sara Lupolt ◽  
Mariya Strauss ◽  
Ryan Kennedy ◽  
Keeve Nachman

This study explores the impacts of the COVID-19 pandemic and the Maryland stay-at-home order on fruit and vegetable farmers in Maryland. Focusing on farms’ direct-to-consumer marketing channels, we aim to characterize the diversity of farm responses and identify practices that facilitated adaptation. This research is grounded in the socio-ecological systems framework, which emphasizes the interconnection between social and ecological systems and characterizes the dual-driving forces that impact food producers and their livelihood. The study team conducted interviews with 20 Maryland farm owners/managers who grow and sell produce. The semistructured interviews includ­ed questions relating to production practices, sales and marketing, and resilience. The interviewer fol­lowed up with probes to understand the dimen­sions of response diversity and adaptive capacity. Interviews were transcribed verbatim, and responses were analyzed using the framework approach. In the context of a global pandemic, community supported agriculture (CSA), farmers markets, and pick-your-own channels provided a high degree of stability and financial security. No farmer reported relying solely on intermediated markets (e.g., restaurants, grocery stores, institu­tions). Distribution channels that incorporated an online marketplace offering prepacked pre-orders were a notable strength of highly adaptive Mary­land produce farmers. Farmers reported that expanding established CSAs was an important method for reallocating produce originally intended to be sold to reduced/terminated marketing chan­nels. Common challenges among farmers included increased administrative workload, concerns asso­ciated with raising food prices during a crisis, and environmental concerns about the use of additional packaging. We describe a range of adaptive behav­iors that aided farmers in withstanding shocks.


2019 ◽  
Vol 35 (5) ◽  
pp. 475-489 ◽  
Author(s):  
Zoë T. Plakias ◽  
Iryna Demko ◽  
Ani L. Katchova

AbstractDue to strong interest in local foods by US consumers, farmers are now marketing not only to traditional wholesale outlets but also via short supply chains to consumers, grocers, restaurants, schools and other local intermediaries. Our research questions are: (1) what farm and farmer characteristics predict farmers’ participation in various direct marketing channels, and (2) what farm and farmer characteristics predict farmers’ choice of a particular combination of direct marketing channels? This work is important because prior research suggests that while total direct sales via short supply chains continue to grow, direct-to-consumer sales (e.g. via farmers’ markets and Community Support Agriculture, or CSAs) are plateauing. Our work highlights key relationships and implies potential barriers and opportunities for farmers in this maturing local foods landscape. To answer our research questions empirically, we employ the 2015 Local Food Marketing Practices Survey, collected by USDA in 2016, and binomial and multinomial logit regressions. Our research yields a number of useful results. For example, we find evidence suggesting the existence of product-specific barriers to participation in certain channels; livestock producers are less likely than other farmers to sell directly to retailers, whereas vegetable farmers are less likely to sell to intermediaries. We also find that beginning farmers are more likely to sell directly to retailers, but less likely to sell to intermediaries than more established farmers, suggesting potential barriers and opportunities for entry into this channel for less experienced farmers. These insights suggest potential areas of attention for policymakers and other decisionmakers, as well as areas for future study.


2014 ◽  
Vol 30 (5) ◽  
pp. 428-438 ◽  
Author(s):  
Erin Silva ◽  
Fengxia Dong ◽  
Paul Mitchell ◽  
John Hendrickson

AbstractA recent increase in programs supporting the entry of organic farmers into direct market channels, such as farmers' markets and community-supported agriculture has occurred in the USA. In order to better implement these programs and to design better outreach and educational support activities for direct market farmers, understanding farmers’ perceptions of success in these marketing channels is valuable. To this goal, Wisconsin-certified organic vegetable farmers were surveyed in order to investigate the relationships between farm characteristics, marketing strategies, and farmer's perceptions of their profitability and quality of life. The data collected from this survey indicate that farmers selling into farmers' markets and through community-supported agriculture tend to be more likely to be dissatisfied with their profitability. Conversely, however, the survey data indicated that farmers selling into other markets, particularly wholesale markets and restaurants/institutions, are significantly more likely to be dissatisfied with their quality of life. Thus, it appears that farmers are making trade-offs with respect to entering markets that allow for greater financial rewards but may lead to a lower quality of life. These results point to the potential benefit of outreach efforts to assist farmers to increase their profitability in market channels that also provide a higher quality of life.


2021 ◽  
Vol 306 ◽  
pp. 02017
Author(s):  
Abdul Sabur ◽  
Retna Qomariah ◽  
Lira Mailena

Social restrictions during the pandemic of Covid-19 caused serious disruptions to the food marketing including marketing of Siam local rice in South Kalimantan. The study aims to analyse the marketing performance and efficiency of Siam local rice in South Kalimantan during the pandemic of Covid-19. The research was conducted in March - June 2020. Respondents were farmers, local traders and wholesalers who were selected using snowball sampling technique. Descriptive analysis was carried out based on the framework of Food Supply Chain Network (FSCN). The data was analysed using quantitative analysis related to marketing efficiency, marketing margin and farmer’s share. The finding of this study revealed that marketing of Siam local rice during pandemic of Covid-19 was remains efficient with the efficiency rate at 10 marketing channels ranged from 6.48%-10.57%. The lowest marketing margin occurred in channel 4 with the largest B/C ratio (2.3) and largest farmer’s share (78.7%) as well since only farmers and wholesaler were actors in this channel. Group of farmers sold grain to wholesalers and wholesalers processed the grain and sold bulk rice to consumers outside the province Therefore, direct marketing channel between group of farmers and wholesaler need to be strengthened in the new normal.


2006 ◽  
Vol 38 (3) ◽  
pp. 575-584 ◽  
Author(s):  
Cheryl Brown ◽  
Jesse E. Gandee ◽  
Gerard D'Souza

To understand the factors that influence farm direct marketing, a linear regression model is estimated to test the relationships between county-level direct market sales and socioeconomic, agricultural production, and location characteristics for West Virginia. The results show that higher median housing value, increased population density, a younger population, a greater number of direct market farms, more diversity of fruit and vegetable production and closer proximity to Washington, D.C., increase direct market sales. The results have implications for other states with a large proportion of small and part-time farmers, many of whom are located in close proximity to metropolitan areas.


2018 ◽  
Vol 4 (2) ◽  
pp. 1-20
Author(s):  
Humberto Davi Zen ◽  
Janaína Balk Brandão

The aim of this paper is to analyze the production and marketing structure of a certified family establishment for organic food production in New York State and compare it with the scientific literature. In order to establish a high coordination between the production and commercialization processes, the farmer uses a productive and business planning supported by detailed records of previous seasons and sales and constant attention to the movements and trends of the markets and of the consumers of his products. Thus, it is verified that the productive activities are oriented by a schedule elaborated according to the expectations of demand for each moment of the productive season. On the marketing side, organic certification proves to be a competitive advantage and a way of adding value to the product, and it enables access to different marketing channels, what allows the farmer to reach different groups of consumers. In this case, the direct marketing, especially in the Farmer's Market, is the most relevant marketing channel for both amount of products and revenue share.


Author(s):  
Eka Mulyana ◽  
Rahmi Yasmin

ABSTRAKPenelitian ini bertujuan : (1) mendeskripsikan saluran pemasaran setiap produk yang dihasilakan pengrajin anyaman purun dan (2) mengitung marjin pemasaran dan farmer’s share dari setiap produk yang dihasilkan pengrajin anyaman purun di Desa Tajung Atap Kecamatan Tanjung Batu Kabupaten Ogan Ilir Sumatera Selatan.  Waktu pelaksanaan praktik lapangan ini dilaksanaan pada bulan Januari 2018. Dara yang dikumpulkan pada penelitian ini yaitu metode pengumpulan data primer dan metode pengumpulan data sekunder.  Penarikan contoh di Desa Tanjung Atap Kecamatan Tanjung Batu Kabupaten Ogan Ilir dilakukan secara sederhana (Simple Random Sampling).  Pemasaran aneka kreasi anyaman purun di Desa Tanjung Atap terdapat dua pola saluran pemasaran. yaitu saluran pemasaran langsung yakni saluran pemasaran dari produsen ke konsumen tanpa menggunakan perantara. dan saluran pemasaran satu perantara yaitu menggunakan satu perantara pengecer dalam hal ini adalah pihak Universitas Sriwijaya Program Studi Sosial Ekonomi Pertanian dimana memang dari awal pembentukan kelompok pihak Unsri yang membantu membimbing para pengrajin sehingga aneka kreasi anyaman tikar purun mampu bersaing dipasaran. Dari setiap perhitungan marjin pemasaran dan farmer’s share untuk setiap produk yang dihasilkan dapat kita ketahui bahwasanya perbedaan harga ditingkat pengrajin dan konsumen rata-rata kurang lebih sebesar Rp 5.000/produk.   Kata Kunci : Aneka produk anyaman purun. Marjin pemasaran. Farmer’s share. Kewirausahaan. Industri Kreatif ABSTRACTThis research is required to: (1) describe marketing channels of each product produced by woven craftsmen and (2) to calculate marketing margin and agricultural product from each product produced by woven craftsmen in Tajung Atap Village. Tanjung Batu Subdistrict. Ogan Ilir Regency of South Sumatra. The timing of implementation of this practice was carried out on January 2018. The comprehensive data on this research was the method of primary data and methods. Sampling in Tanjung Atap Village. Tanjung Batu Subdistrict. Ogan Ilir Regency is done by Simple Random Sampling. Marketing of various wicker creations in the village of Tanjung Atap There was two patterns of marketing channels. namely direct marketing channels from marketing sales from producers to consumers without the use of booths. and marketing channels one thing was a single retailer in this case was the Sriwijaya University Economic Social Studies Program Agriculture where it was from the beginning of the formation of groups of Unsri who helped guide the craftsmen so that various creations mat woven purun able to compete in the market. From each calculation of marketing margin and farmer share for each product produced we can know that the difference in price at the level of craftsmen and consumers on average less than Rp 5.000 / product. Keywords: various products of woven purun, Margin marketing, Farmer's share. Entrepreneurship. Creative Industry


2017 ◽  
Author(s):  
Eric Nost

Full-text, in-print version here: http://www.sciencedirect.com/science/article/pii/S074301671400014XCitation: Nost, E. 2014. Scaling-up local foods: commodity practice in community supported agriculture (CSA). Journal of Rural Studies 34, 152-160.Non-profit, consumer, and government advocates are working to expand access to locally-produced foods as a way of addressing major social and ecological issues. Some activists, however, suggest that farms “scaling-up” production and distribution may lose sight of the movement's aims by circumventing a direct exchange between growing and consumer and by delivering “local” shares long distances. I argue that in order to answer whether scaling-up is misguided, we first have to understand how farms come to scale differently. I describe the varied practices that three community supported agriculture (CSA) farms in the Midwest perform in order to give their products market value as embedded in a specific socio-ecological context. I focus on three key moments of CSA that advocates are concerned about in scaling-up: 1) the employment of different kinds of labor; 2) operating within the seasons; 3) the management of sharer expectations about produce quantity and quality. As what I call commodity practice, farm decisions about these factors produce differently scaled local food commodities. These different practices are not necessarily incongruent with the aims of the movement. My main point in this approach is to advance an awareness of hybridity in local food institutions. As CSAs and other institutions like food hubs grow and evolve, a look at commodity practices can shed light on and confound some of the apparent contradictions in scaling-up.


Author(s):  
NI KADEK WINDA YULIASARI ◽  
I GUSTI AGUNG AYU AMBARAWATI ◽  
I KETUT RANTAU

Marketing Efficiency Analysis of Best Seller Spa Products at PT Bali Tangi This research is aimed to find out the marketing channels, to calculate marketingmargin, producer’s share, and to analyze marketing efficiency of best seller spaproducts at PT Bali Tangi. This company produces three types of spa productsnamely scrub, masker and massage oil that are in high demand. Samples wereselected purposively for retailers from PT Bali and snowball sampling for retailersfrom the wholesaler. Total samples were 30 from Denpasar City and BadungRegency including wholesaler, retailers, hotels and villas. The results showed thatthere are three types of marketing channels of best seller spa products of PT BaliTangi. Channel I: producer – end consumers (for three spa products), channel II:producer – retailers and institutional consumers – end consumers (for three spaproducts), and channel III: producer - wholesaler - institutional consumers – endconsumers (for only two spa products). The channel II comprises 52.95% of the totalsales, whereas 8.97% and 38.07% respectively for channel I and III. The highestmarketing margin was seen from the channel III at amount of Rp 80,000/unit, whileno marketing margin coming from the channel I as it is direct marketing. Thechannel II has marketing margin Rp 25,000. The highest producer’s share is onchannel I by 100% and the lowest is on channel III by 57.89%. The channel II hasproducer’share of 86.49%. In terms of marketing efficiency, this research does notcompare to channel I because channel I does not have a marketing agency. ChannelII of the marketing channel is the most efficient based on three analysis of marketingmargins, producer’s share, and price efficiency. Channel III is only efficient atoperational efficiency of 2,944.57%. Meanwhile, channel III is inefficient. Despite ofinefficiency, channel III is the main supporting channel for the company to maintaindue to high volume of trading compared to channel I.


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