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Assessing the Consumer Behavior, Market Coordination and Performance of the Consumer-Oriented Fruit and Vegetable Sector

Objective

<p>1. GOAL 1. AN AGRICULTURAL SYSTEM THAT IS HIGHLY COMPETITIVE IN THE GLOBAL ECONOMY </p>
<ul><p>a. Integrated and sustainable agricultural production systems </p>
<p>b. Competitiveness in international markets c. Public policy & economics of agricultural production systems </p></ul>
<p>2. GOAL 3. A HEALTHY AND WELL NOURISHED POPULATION </p>
<ul><p>a. Nutritional quality of plant and animal food products </p>
<p>b. Food choices for optimum nutrition and individual health </p>
<p>c. Functional foods for enhancing health </p></ul>
<p>3. GOAL 5. ENHANCED ECONOMIC OPPORTUNITY AND QUALITY OF LIFE FOR AMERICANS </p>
<ul><p>a. Economic and policy analysis of agricultural industrialization </p>
<p>b. Agriculture-related social and consumer concerns Objectives Develop demand and market valuation models for the produce sector that can be used to evaluate effects of increasingly complex product differentiation schemes, trade, commodity marketing programs, labeling programs, traceability systems, and food safety events in the U.S. produce markets. </p></ul>
<p>Analyze the relative benefits and costs, to producers and consumers, of government and industry-led marketing and policy programs using both theoretical approaches and empirical evidence from multi-state applied research projects. Assess the changing coordination and supply chain management strategies being implemented in the fruit and vegetable sector and identify strategic organizational and marketing implications for a set of firms that are diverse in terms of commodity, marketing approach and size of operation (including small and mid size farms). Outputs There are several joint outputs we plan to do in the near future, as a result of information shared at annual meetings, networks that have developed among researchers and opportunities to get on programs and in publications as a team of researchers. These include: Sharing of survey instruments and experimental auction scripts from past studies to make future results more comparable across state studies. Joint proposals for organized symposia through Agricultural Marketing, Agribusiness, Extension and Community Economics track sessions at AAEA meetings as well as collaborations with local foods, cooperative, sustainable agriculture, direct marketing and Value-added agriculture research and practitioner meetings, Webinars and "theme issue" publications. Proposal for "Special Issue" journal to Journal of Agribusiness and/or International Food and Agribusiness Management Review in year 1, and at least 2 other "theme" issues in the agricultural and applied economics or agribusiness fields over the life of the project. At least one will be a cooperative effort with one of the other regional research committees listed in the CRIS background research section of this proposal. In addition, there is discussion of writing a multi-state grant targeted at the AFRI Markets and Trade program, which would explore labeling issues related to consumer response to nutritional information (addressing Goal 3 listed earlier). This is an outcome, since it would allow subteam to garner the resources necessary to extend the meeting time, methodological innovations, and applied research impacts of projects that are less national in scope.</p>

More information

<p>NON-TECHNICAL SUMMARY:<br/> In recent years, greater concerns with respect to diet and nutrition have led to an increased number of marketing and promotional messages focused on the benefits of eating fresh fruit and vegetables. Both consumers and retailers have responded to the spotlight on fresh produce, resulting in increased purchases, marketing resources and even new legislation to promote Specialty Crop production in the US. Between 1987 and 2000, US per capita consumption of fresh fruits and vegetables rose 15% (Govindasamy and Thornsbury, 2006). Retailers have responded by increasing the size and range of produce sold, with the average number of items in fresh produce departments rising from 173 to 350 items between 1987 and 2001 (Progressive Grocer, 2002). The increased popularity of fresh produce represents considerable potential for enhanced marketing revenues
to producers if they can recognize and harness opportunities emerging from changes in food purchases. Meanwhile, producers and consumers need to be informed about the emergence of new business strategies, regulations and policies that may influence their confidence in (consumers) and competitiveness within (producers) this quickly innovating marketing sector. In recent years, increasing numbers of consumers have shown increased interest in foods produced in unique ways, including organic, local, pesticide free, Fair Trade or as functional foods. These individuals and households are also fueling changes in the food system as they seek to purchase their produce through channels as diverse as direct marketing and traditional supermarkets, and with expectations as broad as picking their own produce to highly branded products with 3rd party certifications. This evolution has led a higher
number of farmers to consider new marketing strategies including farmers markets, joining a producer alliance, running a Community Supported Agriculture (CSA), beginning their own value-added ventures or producing new crops and cultivars to gain access to specialty niche markets. Still, the majority of fresh produce is marketed through more conventional, large-scale wholesale and retail partners who are concerned about the efficiencies that such scales brings. And despite the belief that the fruit and vegetable segment of the food market is growing and healthy, little is known about the response of increasingly demanding consumers and food supply chain partners, the changing coordination and supply chain responses of fruit and vegetable enterprises or the response to regulations and policies developed to oversee and guide new innovations in this sector. In short, if this work is not
done, producers, wholesalers and retailers are likely to remain reactionary to domestic and global shifts in consumer behavior and policy may be developed without a full assessment of potential implications for consumers and producers.
<p>APPROACH:<br/> To meet Objective 1, we will collaborate on fruit and vegetable demand analysis with special emphasis on organics. Methods will include conventional and/or discrete choice demand analysis as well as state-of-the-art price analysis. To meet Objective 2, we will examine the impacts of various governmental health, local food, and marketing order initiatives as well as share expertise on research design, and coordinate in at least one case where a similar marketing platform has been adopted - MarketMaker. To meet Objective 3, we will use a broad range of empirical methods including semi-structured case studies, descriptive assessments, econometric analysis, and simulation techniques. The particular method chosen will vary depending on the context of the specific issue and the data available.
<p>PROGRESS: 2010/10 TO 2011/09<br/>Target Audience: Nothing Reported Changes/Problems: The 2011 Start Date is an error, and per NIFA could not subsequently be altered. This project did not actually begin until (January 1, 2013), and so there is nothing to report for this time period.” What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Investigators
Ragsdale, Kathleen
Institution
Mississippi State University
Start date
2010
End date
2015
Project number
MIS-501150
Accession number
233298