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<OL> <LI> Develop demand models for the produce sector that can be used to evaluate effects of increasingly complex product differentiation schemes (organic, enhanced health claims, biodynamic), trade, commodity marketing programs, labeling programs (local, food miles, Fair Trade), traceability systems, and food safety events in the U.S. produce markets. <LI> To 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. <LI> To 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. <LI> To conduct supply chain analysis of specialty crops in order to assess the competitiveness of alternative food systems. <LI> To develop a multi-disciplinary theoretical framework to assess sustainability of a variety of food systems including local, regional, national and global food systems.
NON-TECHNICAL SUMMARY: This research will assess the competitiveness and sustainability of supply chains for specialty crop supply chains. A systematic sustainability and competitive assessment of alternative supply chains of specialty crops, domestic and international, will help policy makers and private firms make better decisions regarding the design of fruit and vegetable distribution channels.
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APPROACH: This study will employ a wide variety of applied economic models to measure and evaluate the performance and welfare implications of alternative production-distribution systems for specialty crops and high value agricultural products. All methods will contribute to assess the economic performance of domestic and international supply chains for fruits and vegetables. Demand curves will be estimated at the local, regional, and national levels, using price and demographic variables. Data on production, processing and distribution costs will be collected to estimate supply curves for horticultural crops. Data will be from secondary sources (e.g. NASS, NY Ag and Markets) for the period 2000-2008. Primary data on local distribution costs will be collected when necessary. The impact of alternative institutional arrangements to regulate specialty crop markets will be assessed and policy implications will be discussed. A second task of this project is to assess the returns of public investments on improving market access of for specialty crop growers. The study will examine factors affecting the success of marketing investments in the United States and in states and provinces competing with New York State. The study will employ survey and in-depth interviews. The project will develop a systematic procedure to evaluate marketing-oriented public support that can guide future investments in marketing projects. The third task is to construct multi-dimensional sustainability indices that will help policy makers and private entities make decisions that affect their strategies of food production, distribution and marketing. The emphasis is on perishable foods, particularly on fruits and vegetables. The framework will be flexible enough to be applied to a wide variety of contexts: from systems involving resource-scarce farmers in less developed countries for whom the priority is to gain market access for their products, to the growing local food movement in the United States, to large-scale food supply chains linked to the modern, global supermarket sector. The fourth task is the design of marketing strategies for horticultural industries in terms of price, product, promotion, and place combinations to enhance their market access and profits. Marketing and microeconomic theories, together with outputs from demand and supply analyses, will be used to identify effective strategies for horticultural industries with emphasis in New York State and the Northeast Region. The study will identify appropriate price, product, promotion and place combinations for NY horticultural industries in local and conventional supply chains.