Abstract Driven by external developments like industry consolidation and price volatility, organized farm producers seek opportunities to generate rent in the value-added segment of the agri-food industry. Given inherent constraints with cost efficiency and product quality, farm producer organizations (FPOs) may use branding to pursue differentiation. An opportunity is facilitated by the farmer-owned label, which constitutes an ownership signal to consumers. However, empirical evidence of the economic viability of the farmer-owned label is limited. Following a choice experiment with 296 cheese consumers in the United States, we specify a random parameter logit model and find a positive willingness-to-pay for the farmer-owned label which is in excess of private and corporate brands in the same product category. In the final model, the mean willingness-to-pay is estimated at $1.74. While the farmer-owned label is proven to be economically viable in a competitive product category, consumer preferences are heterogeneous. Also, there is no compatibility between the farmer-owned label and indicators of family ownership and product origin.
{"title":"Preferences for the Farmer-Owned Label: Evidence from Cheese Consumers in the United States","authors":"J. Grashuis","doi":"10.1515/jafio-2022-0010","DOIUrl":"https://doi.org/10.1515/jafio-2022-0010","url":null,"abstract":"Abstract Driven by external developments like industry consolidation and price volatility, organized farm producers seek opportunities to generate rent in the value-added segment of the agri-food industry. Given inherent constraints with cost efficiency and product quality, farm producer organizations (FPOs) may use branding to pursue differentiation. An opportunity is facilitated by the farmer-owned label, which constitutes an ownership signal to consumers. However, empirical evidence of the economic viability of the farmer-owned label is limited. Following a choice experiment with 296 cheese consumers in the United States, we specify a random parameter logit model and find a positive willingness-to-pay for the farmer-owned label which is in excess of private and corporate brands in the same product category. In the final model, the mean willingness-to-pay is estimated at $1.74. While the farmer-owned label is proven to be economically viable in a competitive product category, consumer preferences are heterogeneous. Also, there is no compatibility between the farmer-owned label and indicators of family ownership and product origin.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-06-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49300673","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract During the last two decades several studies were developed to understand the attributes able to affect consumer vegetable choice over the world. Focusing on fresh and processed tomato product, this study proposes a systematic literature review to systematize and critically apprise the current body of knowledge in this research field. In order to discover suggestions useful to enhance market strategies and policies about vegetable intake, the discovered tomato attributes were categorized, according the Search Experience and Credence logic, into: price, product features, packaging, convenience, brand, sensory properties, sustainability, origin, safety and health, production processes. By synthesizing the review findings, a multi-dimensional integrative content framework was conceived with the aim to maps the extant literature with multiple levels of analysis: antecedent, phenomenon and consequences. As part of the review, a future research agenda, theoretical and practical implications were discussed.
{"title":"Relevant Attributes Influencing Consumers’ Tomato Acceptance: A Systematic Review and Research Agenda","authors":"M. Latino, Marta Menegoli, A. Corallo","doi":"10.1515/jafio-2021-0047","DOIUrl":"https://doi.org/10.1515/jafio-2021-0047","url":null,"abstract":"Abstract During the last two decades several studies were developed to understand the attributes able to affect consumer vegetable choice over the world. Focusing on fresh and processed tomato product, this study proposes a systematic literature review to systematize and critically apprise the current body of knowledge in this research field. In order to discover suggestions useful to enhance market strategies and policies about vegetable intake, the discovered tomato attributes were categorized, according the Search Experience and Credence logic, into: price, product features, packaging, convenience, brand, sensory properties, sustainability, origin, safety and health, production processes. By synthesizing the review findings, a multi-dimensional integrative content framework was conceived with the aim to maps the extant literature with multiple levels of analysis: antecedent, phenomenon and consequences. As part of the review, a future research agenda, theoretical and practical implications were discussed.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-06-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48643744","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This paper examines food courts, where vendors are competing with each other for a fixed number of consumers. This case may arise when consumers are traveling and patronize a food court, or if the destination is a food court. A contest success function is used to describe consumers’ choices, as well as vendor investment and profitability. Using a contest success function allows for varying degrees of substitution between the vendors. Substitution can be a function of location or product space. The model analyzes revenue sharing and changes in product differentiation when aggregate demand for the food court is fixed. The model is also examined if the food court has a collective reputation that depends upon the average investments of each vendor.
{"title":"The Economics of Food Courts","authors":"Jason A. Winfree, C. Allen","doi":"10.1515/jafio-2022-0001","DOIUrl":"https://doi.org/10.1515/jafio-2022-0001","url":null,"abstract":"Abstract This paper examines food courts, where vendors are competing with each other for a fixed number of consumers. This case may arise when consumers are traveling and patronize a food court, or if the destination is a food court. A contest success function is used to describe consumers’ choices, as well as vendor investment and profitability. Using a contest success function allows for varying degrees of substitution between the vendors. Substitution can be a function of location or product space. The model analyzes revenue sharing and changes in product differentiation when aggregate demand for the food court is fixed. The model is also examined if the food court has a collective reputation that depends upon the average investments of each vendor.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-06-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45164856","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This paper studies the competition between private labels and the role of private labels in determining the bargaining outcomes between retailers and manufacturers as well as retailer profitability in the fluid milk market. We differentiate private labels from different retailers and develop a structural model of demand and a Nash-in-Nash vertical bargaining model of supply. Using 2004–2011 Nielsen Homescan data at monthly-county level, we estimated the average bargaining power of retailers and how various factors influence their bargaining power with a random-coefficient discrete choice model of demand. With the full bargaining model specification, this paper then conducts simulations to isolate the role of private label in bargaining and retailer profitability, comparing the effectiveness of alternative private label strategies. Results indicate private label milk from different retailers are close competitors and retailers have more bargaining power than manufacturers. Further, factors such as the manufacturer size, private label share, and their private label position can significantly affect retailers’ bargaining power. Moreover, the counterfactual analysis shows that lowering private label prices and other private label strategies such as private label program expansion and retailer advertising could not only increase their profitability but also allow retailers to benefit from the bargaining with manufacturers.
{"title":"Private Labels Strategy, Retail Profitability and Bargaining Power in the Fluid Milk Market","authors":"Xuan Chen, Yizao Liu","doi":"10.1515/jafio-2022-0002","DOIUrl":"https://doi.org/10.1515/jafio-2022-0002","url":null,"abstract":"Abstract This paper studies the competition between private labels and the role of private labels in determining the bargaining outcomes between retailers and manufacturers as well as retailer profitability in the fluid milk market. We differentiate private labels from different retailers and develop a structural model of demand and a Nash-in-Nash vertical bargaining model of supply. Using 2004–2011 Nielsen Homescan data at monthly-county level, we estimated the average bargaining power of retailers and how various factors influence their bargaining power with a random-coefficient discrete choice model of demand. With the full bargaining model specification, this paper then conducts simulations to isolate the role of private label in bargaining and retailer profitability, comparing the effectiveness of alternative private label strategies. Results indicate private label milk from different retailers are close competitors and retailers have more bargaining power than manufacturers. Further, factors such as the manufacturer size, private label share, and their private label position can significantly affect retailers’ bargaining power. Moreover, the counterfactual analysis shows that lowering private label prices and other private label strategies such as private label program expansion and retailer advertising could not only increase their profitability but also allow retailers to benefit from the bargaining with manufacturers.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-06-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45745218","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-02-05DOI: 10.1515/jafio-2022-frontmatter1
{"title":"Frontmatter","authors":"","doi":"10.1515/jafio-2022-frontmatter1","DOIUrl":"https://doi.org/10.1515/jafio-2022-frontmatter1","url":null,"abstract":"","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-02-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48665050","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This paper reviews rice procurement operations of Government of India from the standpoints of cost of procurement as well as effectiveness in supporting farmers’ incomes. The two channels in use for procuring rice till 2015, were custom milling of rice and levy. In the first, the government bought paddy directly from farmers at the minimum support price (MSP) and got it milled from private millers; while in the second, it purchased rice from private millers at a pre-announced levy price thus providing indirect price support to farmers. Secondary data reveal that levy, despite implying lower cost of procurement was discriminated against till about a decade back and eventually abolished in 2015 in favor of custom milling, better trusted to provide minimum price support. We analyze data from auctions of paddy from a year when levy was still important to investigate its impact on farmers’ revenues. We use semi-nonparametric estimates of millers’ values to simulate farmers’ expected revenues and find these to be rather close to the MSP; a closer analysis shows that bidder competition is critical to this result. Finally, we use our estimates to quantify the impact of change in levy price on farmers’ revenues and use this to discuss ways to revive the levy channel.
{"title":"Effectiveness of Auctions in Securing Price Support for Farmers: The Case of a Grain Market in India","authors":"N. Gupta","doi":"10.1515/jafio-2021-0005","DOIUrl":"https://doi.org/10.1515/jafio-2021-0005","url":null,"abstract":"Abstract This paper reviews rice procurement operations of Government of India from the standpoints of cost of procurement as well as effectiveness in supporting farmers’ incomes. The two channels in use for procuring rice till 2015, were custom milling of rice and levy. In the first, the government bought paddy directly from farmers at the minimum support price (MSP) and got it milled from private millers; while in the second, it purchased rice from private millers at a pre-announced levy price thus providing indirect price support to farmers. Secondary data reveal that levy, despite implying lower cost of procurement was discriminated against till about a decade back and eventually abolished in 2015 in favor of custom milling, better trusted to provide minimum price support. We analyze data from auctions of paddy from a year when levy was still important to investigate its impact on farmers’ revenues. We use semi-nonparametric estimates of millers’ values to simulate farmers’ expected revenues and find these to be rather close to the MSP; a closer analysis shows that bidder competition is critical to this result. Finally, we use our estimates to quantify the impact of change in levy price on farmers’ revenues and use this to discuss ways to revive the levy channel.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-07-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2021-0005","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49315918","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract In the past decade, the market share of environmentally friendly farming (EFF) produce in Japan has witnessed relatively rapid growth. However, consumer awareness and purchasing experience of this agricultural produce are still lagging. To study how awareness of EFF produce influences consumer psychology and purchase decisions, we use ordered logistic regression and choice experiments to analyze 600 survey responses collected through online questionnaires. The results show that information from friends and family can have a positive influence on Japanese consumers’ trust in EFF produce. Consumers also show a significant preference for EFF produce in the short term after receiving information about it. By setting up a control group for comparison, we find that, in addition to information, consumer education and income also positively and significantly affect the decision to purchase EFF produce. This study presents a unique perspective between information and consumer decision-making and provides targeted solutions for the promotional and marketing strategy problems faced by EFF produce sellers in Japan. We argue that strengthening regional publicity methods such as community events can enhance EFF producers’ marketing strategies.
{"title":"Japanese Consumers’ Willingness to Pay for Environmentally Friendly Farming Produce Based on Consumer Trustfulness","authors":"Runan Yang, N. Takashino, K. Fuyuki","doi":"10.1515/jafio-2020-0036","DOIUrl":"https://doi.org/10.1515/jafio-2020-0036","url":null,"abstract":"Abstract In the past decade, the market share of environmentally friendly farming (EFF) produce in Japan has witnessed relatively rapid growth. However, consumer awareness and purchasing experience of this agricultural produce are still lagging. To study how awareness of EFF produce influences consumer psychology and purchase decisions, we use ordered logistic regression and choice experiments to analyze 600 survey responses collected through online questionnaires. The results show that information from friends and family can have a positive influence on Japanese consumers’ trust in EFF produce. Consumers also show a significant preference for EFF produce in the short term after receiving information about it. By setting up a control group for comparison, we find that, in addition to information, consumer education and income also positively and significantly affect the decision to purchase EFF produce. This study presents a unique perspective between information and consumer decision-making and provides targeted solutions for the promotional and marketing strategy problems faced by EFF produce sellers in Japan. We argue that strengthening regional publicity methods such as community events can enhance EFF producers’ marketing strategies.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2020-0036","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45016303","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Millions of people worldwide live in extreme poverty, which has an adverse effect on global food security. Research shows that growth in the agricultural labor sector has twice the impact on poverty compared to growth in other labor sectors. To that end, we examine some of the enabling factors of private sector investment to increase food security and reduce poverty: innovative output, intellectual property rights innovation, gender-sensitive land tenure, creation of new businesses, openness to trade, government institutional flexibility, access to credit, inclusion of new sectors, income diversification, public-private partnerships, infrastructure improvements, payments for eco-system services, and climate-smart innovation. Developing policies that improve food security will help to reduce poverty.
{"title":"Enabling the Environment for Private Sector Investment: Impact on Food Security and Poverty","authors":"L. Post, A. Schmitz, T. Issa, J. Oehmke","doi":"10.1515/jafio-2021-0013","DOIUrl":"https://doi.org/10.1515/jafio-2021-0013","url":null,"abstract":"Abstract Millions of people worldwide live in extreme poverty, which has an adverse effect on global food security. Research shows that growth in the agricultural labor sector has twice the impact on poverty compared to growth in other labor sectors. To that end, we examine some of the enabling factors of private sector investment to increase food security and reduce poverty: innovative output, intellectual property rights innovation, gender-sensitive land tenure, creation of new businesses, openness to trade, government institutional flexibility, access to credit, inclusion of new sectors, income diversification, public-private partnerships, infrastructure improvements, payments for eco-system services, and climate-smart innovation. Developing policies that improve food security will help to reduce poverty.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2021-0013","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44591575","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Introduction to the Special Issue: Challenges and Opportunities for African Agriculture and Food Systems","authors":"J. Oehmke, Biriam Iyob, R. Bertram, A. Schmitz","doi":"10.1515/jafio-2021-0009","DOIUrl":"https://doi.org/10.1515/jafio-2021-0009","url":null,"abstract":"","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-03-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2021-0009","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41554995","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Many studies show that participation in contract farming has positive impacts on farm productivity and incomes. Most of the literature, however, does not take into account that contracts vary in their specifications, making empirical evidence scarce on the diverse impacts of different types of contracts. In this study, we investigate the driving forces of participation in marketing and production contracts, relative to spot markets. We also study the extent to which different contract types add additional benefits to smallholder farmers, using recent survey data of 389 cashew farmers in Ghana. To account for selection bias arising from observed and unobserved factors, we apply a multinomial endogenous switching regression method and implement a counterfactual analysis. The empirical results demonstrate that farmers who participate in production contracts obtain significantly higher cashew yields, cashew net revenues, and are more food secure compared to spot market farmers. We also find substantial heterogeneity in the impact of marketing and production contracts across scale of operation. Small sized farms that participate in production contracts tend to benefit the most. Marketing contracts, however, do not appear to benefit cashew farmers.
{"title":"Does the Contract Type Matter? Impact of Marketing and Production Contracts on Cashew Farmers’ Farm Performance in Ghana","authors":"Caroline Dubbert, A. Abdulai","doi":"10.1515/jafio-2020-0040","DOIUrl":"https://doi.org/10.1515/jafio-2020-0040","url":null,"abstract":"Abstract Many studies show that participation in contract farming has positive impacts on farm productivity and incomes. Most of the literature, however, does not take into account that contracts vary in their specifications, making empirical evidence scarce on the diverse impacts of different types of contracts. In this study, we investigate the driving forces of participation in marketing and production contracts, relative to spot markets. We also study the extent to which different contract types add additional benefits to smallholder farmers, using recent survey data of 389 cashew farmers in Ghana. To account for selection bias arising from observed and unobserved factors, we apply a multinomial endogenous switching regression method and implement a counterfactual analysis. The empirical results demonstrate that farmers who participate in production contracts obtain significantly higher cashew yields, cashew net revenues, and are more food secure compared to spot market farmers. We also find substantial heterogeneity in the impact of marketing and production contracts across scale of operation. Small sized farms that participate in production contracts tend to benefit the most. Marketing contracts, however, do not appear to benefit cashew farmers.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-03-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2020-0040","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42382122","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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