Exploring Opportunities for Agribusiness Firms to Enhance Long-Term Profitability

NON-TECHNICAL SUMMARY: While food costs have fallen, factors such as increasing consolidation of the food industry, rising labor and other input costs, changing consumer taste and preference, and expanding imports are challenging the long-term profitability of farming sector in general and small growers in particular. As a result, domestic production of labor intensive crops such as chile, which is one of the important crops grown mostly by small growers in New Mexico, is dwindling. In a dynamic global market, firms that are capable of offering innovative products that satisfy ever changing consumer taste and preferences at reasonable prices are more likely to prevail. With the increasing incidence of globalization, food quality, food safety, and the integrity of its supply chain has become a major concern. Food safety concerns have led to many initiatives from growers, food processors and distributors, retailers, and legislators to ensure the safety and integrity of domestic food supply chain. it is important to understand how factors such as rising food production costs, expanding imports, and changing consumer taste and preferences affect consumer demand for domestic food products and the long-term profitability of agribusiness firms.
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APPROACH: Both primary as well as secondary data will be collected and used in the study. Statistical models will be developed for each issue addressed in the study. Details and formulas can be found in the proposal outline.