Alternative Marketing Channels Research Articles

Digitalization and alternative marketing channels in the Uruguayan fruit and vegetable chain

This study aims to delve into the potentials and difficulties of digitalization on the real commercial experience of some of the fundamental actors in the Uruguayan fruit and vegetable chain (producers, merchants, intermediaries, consumers, and private and public technicians). For that, these social actors and their projects were described and consulted in search of appreciations or points of view regarding technical innovations, barriers to commercialization, family labor, public policies, pressure for land use, and other complex problems. Through a “snowball sampling”, carrying out semi-structured questionnaires for more than 4 months from INIA Las Brujas, we obtained information mainly from actors in the south and some points in the northwest and east-central Uruguay. Opinions come from the complexity of people in their different roles, with the expected emergence of tensions and contradictions at different moments of the participatory-action research. We could appreciate that the Fourth and Fifth Industrial Revolution are having a significant impact in the Uruguayan fruit and vegetable chain. Digital technology is providing new tools for marketing such as: electronic commerce platforms, mobile applications, traceability and monitoring technologies for data analysis, etc. Support in this transformation comes both from private initiatives and public projects, some of which are outlined. We discuss some causes of digitalization disparities and some solutions, debating the role of each one of the represented actors and their possibilities of change.

Uzbekistan’s cotton clusters in the context of the industrial policy debate

ABSTRACT In 2018, Uzbekistan initiated a clustering policy in the national cotton sector. Based on case studies, this paper investigates the recent changes in cotton production under the emerging clusters. Our findings show a mismatch between the meaning of clusters in the industrial policy literature and practice in Uzbekistan. The supervision of cotton growing passed from the state to private enterprises (clusters). This transformation has perpetuated monopsony conditions under which farmers have no alternative marketing channels. The input markets have been disconnected from state agencies, however farms lack access to private input markets, since clusters supervise the input use. Our analyses show that forced and child labor has receded. In general, the cluster reform hardly took into account the principles of industrial policy. For example, the establishment of clusters among farmers widely lacked transparency. Instead of a hastened establishment of clusters in large scales, an institutional environment that enables bottom-up initiatives should be promoted. Overall, from the farmers’ perspective, recent reform steps led to moderate changes at best, while clusters started to play a dominant role in the cotton sector.

Control, exploitation and exclusion: Experiences of small farmer e‐tailers in agricultural e‐commerce in China

AbstractDigital technologies are reshaping the landscape of agriculture. In 2021, around 10% of agricultural products in China were distributed through the Internet. As small farmers are traditionally subsumed by commercial capital in the sphere of circulation, this article investigates what difference online marketing has made to this relationship. Using qualitative data collected from a county in China, we examine the experiences of small farmer e‐tailers. We find that agricultural e‐commerce provides them with an alternative marketing channel and a larger customer base, increases the efficiency of product distribution and allows them to retain a greater share of the value they produce. However, while extant literature suggests that agricultural e‐commerce has increased farmers' autonomy and income, we find that small farmers' vertical expansion into e‐commerce by becoming agricultural e‐tailers fails to alleviate their subsumption by commercial capital and subjects them to more oppressive forms of commercial capital in three ways. First, small farmer e‐tailers are controlled by agricultural e‐commerce platforms, as their transactions rely on these platforms that are quasi‐monopolies in China. Second, these e‐tailers are increasingly exploited by platforms and other cybermediaries whom they are forced to pay for Internet traffic. Finally, small farmers are being excluded from being e‐tailers as platforms are becoming e‐tailers and they cannot compete with corporate e‐tailers.

Consumers’ Food Delivery Apps (FDAs) Continuance Intention: An Empirical Investigation using the Extended UTAUT2 Model

Online food delivery applications (FDAs), a novel alternative marketing channel, have been extensively adopted by both enterprises and customers in the restaurant sector. Despite the changing consumer attitude towards FDA services, there is still a dearth of research on understanding consumers’ continued intention to use FDA services in Bangladesh’s expanding food delivery market, particularly after the COVID-19 pandemic. To attain this goal, this study employed the widely used Extended Unified Theory of Acceptance and Use of Technology (UTAUT2). The model was tested was evaluated using partial least square structural equation modeling (PLS-SEM) on 350 respondents. According to the findings of the study, performance expectancy, social influence, facilitating conditions, hedonic motivation, price value, information quality, and convenience are all critical factors in maintaining the desire to utilize FDA services in Bangladesh. However, effort expectancy, habit, and time-saving were insignificant in the context of Bangladesh. This study contributes theoretically and practically to academics and practitioners working in areas related to online FDAs services.

Value chain analysis of Sesame (Sesame Indicum L.) in South Omo Zone, Southern Ethiopia

Sesame is the main cash crop in Ethiopia and it is mainly produced in northern and southern part of the country especially South Omo Zone. In the zone sesame is highly produced, but it production is not known regionally and at a country level. So this study was aimed to research sesame value chain of the Zone. Simple descriptive statistics and value chain approach were employed for data analysis during this study. It attempts to deal with mapping and identifying sesame value chain actors and their roles, examines marketing channel, cost margin structure and assessing challenges and opportunities within the study area. The results of the study indicated that out 5589.3 quintals were supplied to markets for various actors and five alternative marketing channels were identified to transact the sesame product through intermediaries. The most important volume of sesame (4900.8 quintals) was marketed through channel V and the lowest volume in channel I. producers get the highest share in channel IV and the lowest in channel II. Barriers to entry traders into the market are that the capital requirement and therefore the wholesalers govern by volume transacted and internal control criteria within the market. Fertile land and high demand for the product were essential opportunity. Pests and disease, Low level of input utilization, Shortage of input supply and high price of inputs were the challenges of sesame production whereas lack of market information, price variability, delay of buyers, low bargaining power and poor product quality were the challenges sesame marketing.

Performance of agricultural extension services at enhancing market-oriented cocoa production in Ife-East Local Government Area of Osun State, Nigeria

The extent at which agricultural extension is rendering support towards ensuring market-oriented cocoa production formed the basis for this study. Multi-stage sampling procedure was used to sample 76 cocoa farmers in Ife-East Local Government Area of Osun State. Radio was the mostly used (92.1%) extension communication channel by the extension agents. The most established linkage was found between farmers and agro-dealers (85.5%). The prominent activities performed by the extension agents toward market-oriented cocoa production were: training on production techniques (x̄ =3.62), establishing linkage with input supplies (x̄ = 3.56) and tailored marketing production (x̄ = 3.53). Meanwhile, provision of sales outlets to sell produce (x̄ = 2.91) was ranked low by the cocoa farmers. There was high level of trust for cooperative leadership (x̄ = 1.86) and extension services (x̄ = 1.81) . There was no significant relationship (r = -0.037) between activities performed by the extension agents and level of trust with other actors. Agricultural extension services should work with relevant governments and non-governmental organizations to create alternative marketing channels to sustain the current efforts at achieving market-oriented cocoa production.

The farm-based entrepreneur’s marketing mix: a case study from the local food sector

PurposeThis paper aims to explore the market creation practices of farm-based entrepreneurs in the local food sector. Alternative marketing channels for farm-based products increase, but it is not known how entrepreneurs work to position their products in the marketplace. By expanding on the research of farm-based entrepreneurship and entrepreneurial marketing (EM), this study explores the entrepreneurial practices that farm-based entrepreneurs use through the lens of the EM mix (EMM) and its constituent dimensions: person, purpose, practice and process.Design/methodology/approachThe study uses a multiple case study design and follows a phenomenological approach in conducting in-depth retrospective interviews with 11 successful farm-based entrepreneurs in the local food sector in Norway.FindingsThe thematic analysis revealed four key EM practices of the study’s farm-based entrepreneurs: transferring the farm or transforming the farm as the primary purpose; legitimising a local brand through the uniqueness of person, purpose and place; using a personal networking approach in the market development process and flexible and controllable market expansion practices. These elements constitute the pillars of successful, creative and resource-efficient market development.Originality/valueThe study represents a pioneering attempt to explore and conceptualise EM within farm-based entrepreneurship. The findings ultimately give rise to a novel framework: the farm-based entrepreneur’s marketing mix (FEMM).

Performance of Agricultural Extension Services at Enhancing Market-Oriented Cocoa Production in Ife-East Local Government Area of Osun State, Nigeria

The extent at which agricultural extension is rendering support towards ensuring market-oriented cocoa production formed the basis for this study. Multi-stage sampling procedure was used to sample 76 cocoa farmers in Ife-East Local Government Area of Osun State. Radio was the mostly used (92.1%) extension communication channel by the extension agents. The most established linkage was found between farmers and agro-dealers (85.5%). The prominent activities performed by the extension agents toward market-oriented cocoa production were: training on production techniques ( x̅ = 3.62), establishing linkage with input supplies (x̅ = 3.56) and tailored marketing production (x̅ = 3.53 ). Meanwhile, provision of sales outlets to sell produce ( x̅ = 2.91) was ranked low by the cocoa farmers. There was high level of trust for cooperative leadership ( x̅ = 1.86) and extension services (x̅ = 1.81 ). There was no significant relationship (r = -0.037) between activities performed by the extension agents and level of trust with other actors. Agricultural extension services should work with relevant governments and non-governmental organizations to create alternative marketing channels to sustain the current efforts at achieving market-oriented cocoa production.

A Systematic Review on Farmers' Market: An Alternative Marketing Channel

The study found that the history of the farmers market as an alternative marketing channel paved its way long back in history and gradually spread across the world. India got its first farmers market in 1987. The study highlighted that farmers' markets in India and other nations are significantly different; therefore, the Indian farmers market calls attention. However, past studies cited various benefits of the farmers' market to producers, consumers, and producers and consumers' benefits. However, less emphasis was laid on its role as a development tool; therefore, this section deserves more attention. Further, expanding such a market with adequate and robust infrastructure will help make the agriculture sector strong and successful. The study reflected how the establishment, growth, and success of farmers market across globe and nations has benefited it stakeholders and how it reacts in the different business environment.

A Systematic Review on Farmers' Market: An Alternative Marketing Channel

The study found that the history of the farmers market as an alternative marketing channel paved its way long back in history and gradually spread across the world. India got its first farmers market in 1987. The study highlighted that farmers' markets in India and other nations are significantly different; therefore, the Indian farmers market calls attention. However, past studies cited various benefits of the farmers' market to producers, consumers, and producers and consumers' benefits. However, less emphasis was laid on its role as a development tool; therefore, this section deserves more attention. Further, expanding such a market with adequate and robust infrastructure will help make the agriculture sector strong and successful. The study reflected how the establishment, growth, and success of farmers market across globe and nations has benefited it stakeholders and how it reacts in the different business environment.

Can institutional innovations in agri-marketing channels alleviate distress selling? Evidence from India

• We address farmers’ distress selling issue through institutional innovations in agri-marketing channels. • We compare likelihood of distress selling through Contract Farming and Farmer Producer Companies against APMC. • Findings suggest a favourable effect of alternate agri-marketing channels in alleviating distress selling. • Simulation results suggest under what circumstances farmer sells to alternate channel. Distress selling of agri-produce is a common phenomenon in Indian agriculture, and is especially true for horticulture crops, given their highly perishable nature and not being covered under minimum support prices. This study focusses on uncovering the role of institutional innovations in agri-marketing channels in addressing the issue of distress selling. Using primary survey of 108 tomato grower farmers from the Western state Maharashtra in India, the study compares the likelihood of distress selling for farmers selling through the alternative channels of Contract Farming (CF) and Farmer Producer Companies (FPCs), as against selling through the conventional marketing channel of Agriculture Produce Marketing Committees (APMCs). Building on the insights from prospect theory, where a farmer would react more severely to losses than to gains, we develop a mathematical model to compare the utility derived from selling in alternate channels (that is, CF and FPC) vis-à-vis selling through the APMC channel. Subsequently, using econometric analysis, we find that opting to sell through alternative marketing channels helps farmers minimize losses and shields them from distress selling. Finally, a probability function is developed to determine the likelihood of a farmer opting to sell in an alternate marketing channel (CF/FPC) as against the conventional APMC channel. The findings aid in framing optimal pricing strategies that could be used by the contracting firms and FPCs.

A DINÂMICA DE COMERCIALIZAÇÃO EM CIRCUITO CURTO EM LUGO_GALIZA

There are several marketing channels used to dispose of production. However, there are ecological-based food production initiatives that use alternative marketing channels, such as short supply chains, civic food networks, fairs and specialty stores, consumer groups. In this case, a study was carried out to characterize a specific type of food supply in which producers and consumers combine in collaboration for the operation of this dynamic, as a form of responsible consumption. The methodology used was the case study, complemented by literature review, interviews and photographic records. Different bodies of knowledge were mobilized for the analysis and interpretation of social practices involved in organizational processes, interpersonal relationships, knowledge development and food activism. The results indicate that this supply dynamic goes beyond food trade and that in the end it seeks the materialization of a different society and food system.

Analysis of Fish Market Chain: The Case of Gilgel Gibe Dam I Reservoir Southwest of Ethiopia

This study was aimed at analysis of fish market chain in Gilgel Gibe dam I reservoir Southwest of Ethiopia with specific objectives of investigating the fish market channels and performance and analyzing the determinants of fish supply to the market. A three stage sampling procedure which includes both purposive and random sampling were used to select sample respondents. Primary data were collected from 128 randomly selected individuals’ interview using structured questionnaire via enumerators and secondary data were acquired from published and unpublished sources. Descriptive statistics and econometric analysis were used to analyze the data. The result of fish marketing channels and performance analysis shows 196,885 kg of fish were produced by the respondent which is 79% passed through twelve main alternative marketing channels and 16.4% was consumed by producer. The result of GMM shows the producer get the higher margin (at channel II and XII which is 75% and 73.7%) when they sell to cooperatives and collectors and in general restaurants and hotels get the highest margin in this fish value chain (i.e. 142-146%). The result of multiple linear regression model indicated that volume of fish supply in this study area is positively and significantly affected by fishing experience, price of fish in 2017, producer membership to fishery cooperative and access to credit service. Therefore; it needs strong government intervention on supporting fishermen in providing modern input and technologies, empowering fishery cooperatives, strengthening of market extension and linking them with financial service provider and improving extension system are recommended to accelerate the fishery value chain’s development thus income of individual fishermen could be enhanced.

Approaches to Reduce Food Losses in German Fruit and Vegetable Production

Food losses occur in all agricultural value chains, but are especially high in the fruit and vegetable sector. This study quantifies losses of selected fruits (strawberries, apples) and vegetables (lettuce, carrots), identifies the main reasons for food losses, and assesses effective measures for the reduction of these losses. Data were collected in structured interviews with value chain actors from production to food retail and validated in regional expert workshops. Results show that in average years, about 25% of the analysed vegetables are lost at farm level. The range of fruit losses differs widely, from 15% to 20% for strawberries and only 6% to 16% for apples. Weather is a major factor for crop losses, since it can strongly affect product appearance and hence marketability in the food retail sector. There is a lack of alternative market channels for products, which do not meet the high-quality standards for fresh products in the retail sector. Effective measures to reduce food losses are protected cultivation in greenhouses or under hail nets, continuous cooling systems, improved packaging and training of staff. More cooperation and coordination between producers, wholesalers and retailers could also increase the share of marketable products.

Türkiye’de Keçi Eti Üretimi ve Sürdürülebilirliğinin Değerlendirilmesi

Goat meat is a great source of protein that is easily found. Although known to raise cholesterol levels and blood pressure, but goat meat also have health benefits when consumed in appropriate portions. According to data of the Turkish Statistical Institute, there are still 10.63 million goats in Turkey. Hair goats constitute approximately 98 % of goat population. 37.525 tons of red meat produced from 2.07 million slaughtering goat meat in 2017. This represents only 3.3 % of the total Turkish red meat production, which is at 1.13 million tons. The main purpose of this study is to analyses recent developments in goat meat production in Turkey and evaluation of its sustainability. Further, current consumer trends for goat meat have been discussed and alternative marketing channels and strategies for goat meat have been evaluated in this study. Statistical data have been obtained from FAOSTAT and Turkish Statistical Institute. Data obtained have been shown in the tables issued by the use of percentage and index calculations. Socio-demographic variables like education or the presence of children and geographic variables are important in determining demand for goat meat. If problems of goat breeders are solve by short- and long-term precautions in Turkey, goat farming will make important contributions at regional and national level. Firstly, goat farming in Turkey should be supported directly and indirectly in accordance with EU standards.

The ILLIAD project: sustainable, local or localized, innovative food chains – application to apricot production

ILLIAD (2012-2015), a French national project, aims to propose a set of indicators of system sustainability (sustainable food system, local agri-food systems, food chain analysis), and to test them on three case studies, which are three typical trajectories of construction of sustainable food chains, namely chain innovation (stone fruits), chain differentiation (rice) and territorial embedding (wheat). Although French apricot production resists outside competition, it is weakened by the high variability of harvests and the resulting high variability of apricot price and supply, particularly for processing. A solution to this variability could be the setting up of dedicated orchards with long-term commitments from both producer and processor. The project explores the conditions and consequences of this dedicated orchard, from technical to economic points of view. An ideotype for a dedicated orchard will be built, including aspects of cultivar selection, and conditions in terms of chain organization will be designed. Concerning fresh apricot, the ILLIAD project will work on development of alternative marketing channels, such as direct sales from producers to consumers.

Organics in Finland—a country report

The Finnish organic food system has had the same development phases as many other countries producing or consuming organic food, but the current volume of production and the market share is lagging severely behind the best-performing European Union countries. Finnish authorities set several development programmes with quantitative goals for the growth of the organic sector. The current “2020” goals aspire to reach, e.g. a 20% share of organic from total agricultural land and to triple the share of organic markets (compared to 2014). Despite scholars predicting these current goals unreachable, the food chain stakeholders trust in the positive organic developments in all areas and food sectors. The major share of the organic land is under grass production for milking cows, other bovines and sheep. Oats are the most commonly organically cultivated grain. Organic food processing, as well as its retail, is very biased: large-scale companies represent the largest shares, while SMEs (small- and medium-size enterprise) offer an alternative marketing channel for producers and consumers. Public procurement provides an important channel for the organic food chain in Finland, since its education system offers a warm school meal for all students up to the vocational school level. The foreign organic trade balance is negative and that challenges the food industry in product innovations and branding the general attributes of Finnish food, purity and its Arctic origin together with organic food production. Organic development needs research that currently focuses mainly on agricultural and environmental issues. More cross-disciplinary and holistic research is needed to understand the slow development of organic sector in Finland.

Two main challenges that prevent the development of an organic food chain at local and national level—an exploratory study in Finland

This study presents two hypothetical challenges: (1) the actors in the Finnish food chain do not have a common community that would cover the entire food chain from primary producers to the consumers of organic food and that would, by communal effort, enhance the development of the organic food chain, and (2) a fairer share of power among the food chain actors would enable the development of the organic food chain. The literature supports these arguments; the collaboration occurs mainly on a horizontal level and leaves actual consumers outside the direct collaboration. The division of power, according to the results of other studies, is uneven, biased, and twisted among the food chain actors. In this study, the two arguments were presented to two focus groups: one in the local food chain and other at national food chain level. The focus group discussions confirm the arguments that the activity of the food chain happens mainly on a horizontal level, and that the power is unevenly distributed among the food chain actors. The understanding of the influences of the lack of a common food chain-based community on the development of the organic food chain, and the proposed means for tackling the challenges, were heterogeneous. The understanding of the profitability and potential of such a food chain-based community was to a large extent missing in the agricultural and industrial part of the food chain, especially. The oversized strength of retail companies, the underdeveloped capability of other food chain stakeholders to take control of food marketing and the oversized bureaucracy were seen as the main reasons for the unfair share of power, which situation was even partially accepted. According to the vision of the focus group members, the Finnish organic food chain will be a multifaceted combination of small- and medium-sized local enterprises and large national level enterprises acting at the food chain level, but also accepting alternative marketing channels such as food processing and sales at a farm level. The food chain is dynamic and diverse. The enterprises are in a process of constant development as regards the volume and level of their activity. This development trend and the challenges discussed are typical in many western countries, and therefore, this article with its results provides a useful opening for food chain level discussions in many other countries.

Seasonal asymmetries in wholesale–retail cost pass-through

ABSTRACTThis article investigates the extent of seasonal asymmetries in wholesale to retail cost pass-through in the Canadian apple market. We model nonlinearity in cost pass-through in a panel two-regime error correction model. The model employs weekly store-level retail matching wholesale price data for a major US retail chain. Our results reveal distinct seasonal asymmetries in cost pass-through. Retail prices adjust faster during the fall indicating significantly higher pass-through in response to a change in input composition and seasonal expansion of alternative marketing channels. This input composition effect on cost pass-through highlights the general importance of time-variant market conditions and their respective determinants in explaining cost pass-through dynamics in commodity markets.

Risk Sources Encountered by Farmers in the Open Field Production of Strawberry and Risk Management Strategies: A Case of Menemen- Emiralem District of Izmir

This study aims to determine and analyze farmers’ risk perceptions, risk management strategies in strawberry production under open field. Data were obtained in 2010 production year from face-to-face interviews of 52 open-field strawberry farmers in Menemen-Emiralem district of Izmir province in Turkey. Factor analysis was used in data reduction to identify a small number of factors related to risk sources and risk strategies in this study. Then, multiple regression model was used to evaluate the influence of socio-economic characteristics on the strawberry farmers’ risk perceptions and risk management strategies using factor loadings. The results of this study show that the most important risk resource that the strawberry farmers' perceive is arise from the lack of production capacity. “Sustainable income” was the most important risk management strategy factor that was significantly perceived by strawberry farmers. As a solution to lack of capacity, strawberry farmers should be specialized on strawberry growing to increase the capacity providing soil fertility, improve the product quality and application of new agricultural technologies, instead of product diversification. In terms of sustainable income, strawberry farmers should focus more on the application of alternative marketing methods, such as direct marketing from field to consumers. By forming their own cooperatives, strawberry farmers should furthermore, access to alternative market channels