Food Marketing System Research Articles

The Marketing Systems Approach for Designing Effective Marketing Interfaces and a Circular Economy

In this article, we argue that Layton's Marketing Systems approach is important to tackle the triple-bottom-line (TBL) of economic, social, and environmental challenges holistically. We discuss how this system approach can contribute to designing effective marketing interfaces for a more sustainable circular economy (CE). Marketing has a legacy of understanding and increasing consumption, but it is also an essential element to drive toward a more sustainable society, as demonstrated by cases on eco-communities and sustainable food marketing systems. The article concludes by encouraging (Marketing) scholars to utilize Layton's work on multi-level systems to its fullest potential to address the pressing TBL challenge and contribute to the Sustainable Development Goal (SDG) missions in a holistic way.

Will the COVID-19 Pandemic Outbreak Intensify the Resource Misallocation in China’s Food Production?

Resource misallocation is one of the important manifestations of agricultural supply-side distortion and an important causal factor that hinders food production increase and affects food security. Did the COVID-19 pandemic intensify China’s food production misallocation? The extent and consequences require quantitative assessment and scenario analysis. In this paper, we use a combination of input-output model and computable general equilibrium (CGE) model, and further incorporate the most important input factor in agriculture—intermediate inputs—into the model. At the same time, simulation of the pandemic impact from the demand and supply sides, respectively, and scenario analysis of the impact of the COVID-19 pandemic on China’s food production. The results of the study show that: first, compared with the baseline level before the epidemic, the overall TFP growth of China’s food industry chain decreased, and the TFP growth rate of the food distribution sector decreased most significantly. Second, there are significant factor misallocation distortions of capital, labor, and intermediate inputs. Third, in the short term, the period of the COVID-19 pandemic led to a decline in the vitality of the national labor market, but the return of non-farm employed labor in rural areas instead reduced the degree of labor misallocation in the food sector. Fourth, the demand side has a greater impact on China’s food production, among which the consumer demand has a particularly strong impact on the resource allocation of food production, and the short-term shock will mainly have a more obvious impact on the allocation of labor factors and the allocation of intermediate input factors in the food industry chain. Accordingly, this paper proposes that in order to guarantee China’s food security and adapt to the short-term characteristics of the era when the COVID-19 pandemic is rampant, China should make efforts in four areas: rational allocation of food production resources and factors, solid construction of the whole food industry chain, stable guarantee of the food market system and transfer to enhance social expectations.

Perkembangan Sistem Pemasaran Makanan Tradisional Dakak-dakak Ni Nun Nagari Simabur Kecamatan Pariangan Kabupaten Tanah Datar Tahun 2000-2019

This research is a study of economic history that examines the development of traditional food marketing systems in the Dakak-dakak Ni Nun in Nagari Simabur, Pariangan District, Tanah Datar Regency from 2000-2019, the purpose of this study is to describe the beginning of the emergence of the traditional food industry in dakak-dakak Ni Nun, the development of the marketing system from 2000-2019 and obstacles encountered in using the marketing system used. In this study the method used is historical method, historical research method is the process of testing and analyzing critical history of recording and relics of the past. Imaginative reconstruction of the past based on data obtained by taking a historiographic process (historical writing). In the historiographic stage there are the first four steps are heuristics (data collection), the second is verification (source criticism), the third interpretation (interpretation) and the last historiography (historical writing). Nun where this can be seen from the increase in sales from year to year but in marketing the product there are also obstacles that are passed but Ni Nun can overcome them so that they can last until 2019.

ОРГАНИЗАЦИОННЫЕ МОДЕЛИ УПРАВЛЕНИЯ ОПТОВО-ПРОДОВОЛЬСТВЕННЫМИ РЫНКАМИ В КОНТЕКСТЕ НАЦИОНАЛЬНЫХ СТРАТЕГИЙ ПРОДОВОЛЬСТВЕННОЙ БЕЗОПАСНОСТИ

Based on the method of historical analysis of the evolution of state regulation and organization of the wholesale food market systems in 7 countries of the European and Pacific regions, the article studies the effectiveness of the wholesale food market system as a tool for implementing the state policy of national food security. The authors identified 4 typical organizational and economic models for the formation and regulation of the wholesale food markets within the framework of the implementation of various national strategies in the field of food security: the model of state initiative, the model of public initiative, a mixed model, a combined model with point-based state regulation. The authors defined effects of the system of the wholesale food markets as a tool for the implementation of the national food security strategy, as well as the intensity of such effects within each of the presented models. The methods of interaction of the wholesale food markets system with the sectors of farmer and consumer cooperation are considered. The role of regional specifics, state policy and local communities in the formation, functioning and evolutionary development of the system of wholesale food markets is investigated. It is proved that the intensity of the effects depends significantly on the specific institutional conditions and the goals that form the basis for the implementation of the model.

Commentary: Food and Food Waste: Spinning a Two-Sided Coin

Research on food and food waste has been receiving growing attention, and public policy plays an important role in the food marketing system. Although marketing and public policy appears to focus largely on food rather than food waste, concern about the latter is growing due to its environmental and economic impact. Drawing on the accompanying articles, this commentary illuminates three important facets of food-related research.

Food prices and marketing margins during the COVID-19 pandemic: Evidence from vegetable value chains in Ethiopia.

It is widely feared that the shock of the COVID‐19 pandemic will lead to a significant worsening of the food security situation in low and middle‐income countries. One reason for this is the disruption of food marketing systems and subsequent changes in farm and consumer prices. Based on primary data in Ethiopia collected just before the start and a few months into the pandemic, we assess changes in farm and consumer prices of four major vegetables and the contribution of different segments of the rural‐urban value chain in urban retail price formation. We find large, but heterogeneous, price changes for different vegetables with relatively larger changes seen at the farm level, compared to the consumer level, leading to winners and losers among local vegetable farmers due to pandemic‐related trade disruptions. We further note that despite substantial hurdles in domestic trade reported by most value chain agents, increases in marketing—and especially transportation—costs have not been the major contributor to overall changes in retail prices. Marketing margins even declined for half of the vegetables studied. The relatively small changes in marketing margins overall indicate the resilience of these domestic value chains during the pandemic in Ethiopia.

AGRIBUSINESS MANAGEMENT: A Community-based Learning Module

The Agribusiness Management Module is written for faculty, agribusiness manager, and students (soon to be an agribusiness manager). There are tremendous career opportunities in the food and agribusiness industries. In this course, you will be exposed first to the breadth of these opportunities, from research and development to a logistics manager for a major food retail organization. You need to understand the marketplace and some of the specific institutional aspects of the food processing and marketing system before beginning A career as a director in agribusiness. Preparing for a career in agribusiness management also requires that you understand management's fundamentals —planning, organizing, directing, controlling, and the basic functions of marketing, finance, operations and logistics, and human resource management. In this course, you will find all of these topics covered straightforwardly. We hope that many food and agribusiness examples and case studies will bring these ideas to life for you..This is a module you will continue to use as a reference as your managerial career unfolds in the field of agricultural-based business.

ГАЛУЗЬ ОВОЧІВНИЦТВА В СИСТЕМІ ПРОДОВОЛЬЧОГО РИНКУ: ОСОБЛИВОСТІ, ТЕНДЕНЦІЇ, ПЕРСПЕКТИВИ

The analysis of the current state of vegetable production in Ukraine is chosen for the purpose, the main problems of its development in modern conditions are established; The role of vegetable growing in the food market system has been studied and the directions of stabilization and increase of efficiency of functioning of the vegetable subcomplex have been determined. The methodological basis of the study were scientific papers on the formation and functioning of the vegetable market. The following methods were used: dialectical, abstract-logical, systematic analysis (theoretical generalizations and formation of conclusions); mathematical and statistical, the method of expert assessments (when establishing a rating assessment of the level of yield of vegetables). Results: The article analyzes the indicators of production, sown areas and yield levels of major crops for the period 2000-2019 in Ukraine, Europe and the world, outlines the general strategy of the vegetable industry, identifies the features of the vegetable and food subcomplex in system of the national food market. Aspects of formation of food security of Ukraine on the basis of an estimation of levels of production and consumption, volumes of export and import are considered. The level of food security of the country in 2015 and 2019 was determined by calculating the indicator of economic affordability of products and indicators of adequacy of consumption of different groups of products in Ukraine in 2019. The reasons for the unsatisfactory condition of the vegetable and food subcomplex are analyzed, the general strategy and priority directions of development of vegetable and melon growing and processing industry for the period up to 2025 are stated, the volumes of vegetable and melon production for the future are determined. The scientific novelty is to establish trends in the development of the vegetable industry for the 20-year period (2000-2019) in Ukraine, CIS countries, regions of the world and compare the rate of change of these indicators for this period. The practical significance of the publication is to identify the main problems of development of the vegetable industry in the food market and to identify ways to solve problems in the future.

Reflections on a Career as an Industrial Organization and International Economist

AbstractIn this article, I reflect on my career in the agricultural economics profession as a researcher who has focused predominantly on the synthesis of two fields in economics: industrial organization and international trade. In that context, I consider my main contribution to have been in analyzing the impact of public policy where imperfect competition matters in the food and agricultural marketing system, be it in either the horizontal or vertical market dimensions. In addition, I have also paid considerable attention to incorporating market structure into empirical analysis of food and agricultural trade.

The improvement of marketing management in agrarian sphere

Purpose. The aim of the article is consideration of theoretical and methodological aspects of marketing management and identification of its main features in the agricultural sector of the economy. Methodology of research. The systems and synergetic approach was applied as the theoretical and methodological basis for the research. Abstractive, logical and empirical methods were used in the process of highlighting the problems of marketing management in agribusiness. The tabular and graphical methods were used for visual presentation of analyzed data. Findings. The study brings up considerations for the clarification of the marketing concept in agribusiness. The changes that take place in the global market can stimulate Ukraine’s food marketing system development. Agrimarketing has been defined as a concept which is broader than agriselling. The main elements of marketing mix (product, price, place and promotion) highlighted in the context of reflecting consumer preferences, achieving entrepreneurial profits, leveling of contradictions between market institutions. The causes of seasonal price fluctuation for agricultural products were identified with the aim of developing the risk management mechanisms and governing regulatory programs. Geographical indications have been defined as the tools for attaining the sustainable food system and strengthening competitive positions of agricultural producers. The ethical entrepreneurship issues in agrifood system were discussed in order to reflect current trends in consumer preferences. Originality. The concept of ethical entrepreneurship in agribusiness has been further developed. Practical value. The proposed scientific and methodological approaches to the development of marketing management in agrarian sphere can be applied for the improvement of agricultural trade policy and development of regional marketing programs. Key words: marketing management, price volatility, agricultural commodities, agricultural trade policy, ethical entrepreneurship.

Shocks to food market systems: A network approach

AbstractIn order to better understand how cross‐border price shocks are transmitted to domestic food markets, we augment an error correction model with a network approach and apply it to Tanzania. We show the following. First, Dar es Salaam, Tanzania's largest city and port, is not a significant influence. Second, demand shocks emanate primarily from border markets that may serve as conduits for informal trade. Third, market linkages differ considerably across seasons and commodities. Fourth, prices in areas with high production potential are especially sensitive to systemic shocks. More broadly, we show that a network approach in conjunction with time series analysis can enhance our understanding of the origins and channels through which shocks are transmitted to food markets.

Consumer Preferences for Traceable Food with Different Functions of Safety Information Attributes: Evidence from a Menu-Based Choice Experiment in China.

It is of great value to study consumer demand for safe foods in promoting the development of a safe food market system and the reduction of food safety risks, as well as foodborne diseases in China. This paper takes traceable pork as an example and constructs food safety information attributes with ex ante quality verification and ex post traceability. Interactions between safety information attributes and the consumer’s response to cost-driven price changes were investigated for 345 consumers in Wuxi City, Jiangsu Province, China, using a menu-based choice (MBC) experiment and multivariate probit (MVP) model as analysis tools. The results suggest that food safety information attributes are important to consumers, as the consumers preferred pork quality inspection attributes to pre-incident quality assurance functions. Therefore, it is beneficial to include pork quality inspection attributes in the traceable pork attribute systems during the initial construction of traceable pork markets in China. Attribute price was an important factor that affected consumers’ choice of information attributes. When customization cannot be achieved, a profile composed of elastic pork quality inspection attribute and supply chain–internal traceability attribute would be the most preferred traceable pork product in the market based on the need of building a fully functional traceable food system and reducing food safety risks. In addition, there was a strong substitution relationship between different information attributes, and there was heterogeneity in consumers’ choice of information attributes. Therefore, the government should support manufacturers in producing multi-level safe food to meet diverse consumer demand.

Food System Study of Martin County, Florida


 Martin County, Florida has a rich agricultural history with farming and cattle ranching being important economic drivers since the early 1930s. Nevertheless, the county struggles to meet the balance between food supply and demand. Farmers often face challenges finding sizable, secure, well-paying markets, and the most consumers do not participate in local food transactions. This 4-page fact sheet written by William A. Messina, Jr., Lisa House, Yvette Goodiel, and Carol Albertsand published by the UF/IFAS summarizes two studies conducted to examine agricultural production in Martin County and its food processing, distribution and marketing systems and infrastructure to better identify potential constraints and opportunities for the local food system.https://edis.ifas.ufl.edu/fe1071

From Anecdote to Formal Evaluation: Reflections from More Than Two Decades on the Local Food Research Trail at USDA

Introduction In the waning days of my career at the U.S. Depart­­­­ment of Agriculture (USDA), the editors of this journal encouraged me to share some reflec­tions about the evolution of local food research and data collection during the past two decades, and I am deeply appreciative for the opportunity. It has been my great fortune to have witnessed the extraordinary transformation of the local food sec­tor firsthand since the mid-1990s. What started out as a minor assignment to oversee a single—and eventually unsuccessful—cooperative research agreement on school food procurement with the Georgia Department of Agriculture in 1995 ended up piquing my interest about the opportunity for growth in local food sales within institutional and commercial food service, as well as retail channels. This subject has remained the primary focus of my professional life and a subject of vast curiosity for me ever since. For someone like me, who has been immersed in the world of local food systems for more than 20 years, it is staggering—and gratify­ing—to consider both the profound changes in research and data availability that have occurred over the course of my career, and the multiplicity of ways that relevant evidence and data can now be employed to guide business and community devel­opment through local food system expansion. My intent in this article is to briefly examine the chron­ological history of local food research at USDA as I experienced it “in the trenches,” and observe the combination of Congressional mandate, political influence, personal curiosity, and, sometimes, pure serendipity that permitted this body of work to emerge. It should be noted that my personal experi­ences and observations are strongly shaped by my career-long affiliation with USDA’s Agricultural Marketing Service (AMS), an agency that has been mandated by Congress since 1946 to promote effi­ciency in the U.S. food marketing system and help producers attain a greater share of consumer food expenditures.[1] Therefore, while I acknowledge the many health, equity, and environmental benefits that may be achieved through local food system development and expansion, I am deliberately con­fining the bulk of my remarks to the economic contributions of local food systems from a pro­ducer standpoint, and USDA’s important role in bringing such data and information to light. . . . [1] Agricultural Marketing Act of 1946, Sec. 203. 7 U.S.C. 1622. The original text reads: “to foster and assist in the development and establishment of more efficient marketing methods…for the purpose of bringing about more efficient and orderly marketing, and reducing the price spread between the producer and the consumer.” See https://www.ams.usda.gov/sites/default/files/media/Agricultural_Marketing_Act_Of_1946%5B1%5D.pdf See the press release for this article.&nbsp

Маркетинговий інструментарій в механізмах управління розвитком експортного потенціалу підприємств агро-промислового виробництва

Introduction. Changes in the world and domestic economy require the agro-industrial enterprises to improve the process of managing export potential development. An important role in solving this issue is played by marketing tools. Its formation and use largely determines the competitiveness of agro-industrial enterprises and determines the situation on the this market. The purpose of scientific research is to summarize the peculiarities of forming marketing tools in the mechanisms of managing the export potential development of agricultural enterprises. Results. The essence and expediency of model introduction of using marketing management in domestic practice are substantiated. The orientation of marketing in agrarian production is determined. The factors are characterized that determine the conditions for the export potential of agro-industrial enterprises when entering international markets. The contradictions of economic character in the food marketing system are identified. The priority of marketing activity, which is to reconcile emerging contradictions, is highlighted. The essence definition of the competitive advantages concept is given from the point of view of enterprise economy, management, marketing, financial activity, logistics. The integration processes role in the consumer behaviour is outlined. The main function of economic instruments in the formation mechanism system of competitive advantages is determined. Segments (economic, technical and technological, quality of production, rules of relations, organizational) in the mechanism of competitive advantages formation are characterized on the basis of logistic approach at the entity level through a set of tools. The prices are determined as a lever of marketing activity of agrarian enterprise. Varieties of market saturation are defined. The communication marketing plans of practical and strategic importance are presented. Conclusions. Improvement of marketing tools in the mechanisms of managing the export potential development of agro-industrial enterprises should take into account the world experience. An important task is its adaptation to domestic realities. This will maintain the proper level of competitiveness of domestic products. Keywords: export potential, development management, economic potential, competitiveness, marketing tools, agroindustrial production, export.

Equilibrium of the Food Marketing System: a Debate of an Ethical Consumption Performance Based on Alternative Hedonism

Discussions about the impacts of marketing systems on society have been strongly encouraged in the field of macromarketing. However, these studies have focused on analyzing human and organizational actors, neglecting, to a large extent, the impacts of practices of marketing systems on other non-human stakeholders, such as those associated with or materialized in the form of a product. This article debates the material basis of the product of animal origin based on the concepts of justice, stakeholder theory, and externalities. An argument was developed attributing the status of a moral agent to the animals used to make products and focusing on this debate, arguing for the establishment of a consumption pattern that morally considers animals. This was made feasible by new alternatives for food performances exemplified by the conduct of vegetarian and vegan consumers.

Creating Value for Customers, Clients, Partners and Society: An Introduction to the Special Issue on Food Waste

ABSTRACTRoughly one-third of edible food produced in the world is wasted, that is, it is never consumed by humans, despite the persistent demands for nutrition throughout the world. The American Marketing Association defines marketing as “…the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” When it comes to food, an increasing number of these key stakeholders question how a global marketing system that routinely wastes a startling fraction of its product comports with “…value for customers, clients, partners, and society at large,” and whether the food marketing system can do more to sustainably convert scarce planetary resources into global nutrition. We introduce the articles in this special issue, which provide an intellectual and empirical basis for exploring how the global marketing system generates a substantial amount of food waste and how the food marketing system can do more to reduce the amount of wasted food.

Shocks to Food Market Systems: A Network Approach

We estimate external and domestic food market linkages in Tanzania to better understand the cross-border transmission of shocks. We employ a market-network approach to show that i) The largest city is not a major source of influence; ii) Demand shocks emanate from border markets that may serve as conduits for informal trade and iii) Prices in the high potential areas are especially sensitive to systemic shocks. Taken together, our analysis suggests that an interventionist trade policy is not an alternative to remedying the inefficiencies that stem from inadequate rural infrastructure. More broadly, the method described in this paper may be used to develop a more precise understanding of the origins of external shocks to domestic food markets.

THE COMPETITIVENESS OF AGRICULTURAL PRODUCT AND INPUT MARKETS: A REVIEW AND SYNTHESIS OF RECENT RESEARCH

AbstractThis article reviews literature on competitiveness of agricultural product and input markets. Although researchers in the United States and Europe emphasize different stages of the agricultural and food marketing system, their focus is similar: extent of buyer power, although both have largely ignored the sector supplying inputs to agriculture. The key conclusion is that there is little robust empirical evidence for food processing firms exerting buyer power, and there are limited data concerning vertical contracts between food processing and agriculture, but there is a small body of evidence concerning food retailer behavior and vertical coordination between food retailing and processing.

The dynamics of smallholders’ participation in the commercialization of high-value horticultural crops: a case of vegetable producers in Kenya

The high-value horticultural markets in Kenya were for a long time one of the best examples of how smallholders are able to participate in globalized food-market systems. However, participation of smallholders in these markets seems to have been declining over the recent past. This study exploits panel data of households from selected vegetable-producing regions in Kenya, in order to examine the dynamics of smallholders' participation in the commercialization of high-value vegetable crops. Results show that the number of smallholders participating in commercialization of vegetables is indeed declining. Key constraints are related to high costs of production, low and fluctuating market prices, stringent market regulations and insufficient water for irrigation. Farmers exiting from vegetable markets have significantly older household heads and they own less agricultural assets and livestock than farmers who continue to engage in the commercial production of vegetables. Policy interventions should focus on promoting the development of marketing infrastructure and institutional support for smallholders to be able to commercialize through export and domestic market channels.