Progress 01/01/06 to 12/31/06
Outputs The activities reported below are part of an ongoing effort to grow and sustain the food industries of the Northwest. FOOD BUSINESS STRATEGIES: Two papers have been developed from the data collected analyzing food company success in the previous year: one on marketing orientation and innovation and their impact on firm performance for small and medium sized firms, and a second looking at large and small firms. A presentation on the planning process is being developed as a paper for submission. Work has continued on how small food companies find and utilize market information in their decision process. Efforts in 2006 were expanded to provide pragmatic information about the regional food distribution channel. Interviews of multiple players at all stages of the distribution channel were conducted and other information compiled to produce a series of Extension publications. Four have been published; three more are slated to be completed in the first half of 2007.
MARKETING AND TRADE: a number of invited outreach presentations took place in the past year based on earlier research under the Multicommodity Grant and a study which was earlier presented to the grass seed industry was published in 2006. Presentations included research findings on the motivations of consumers for organic purchase which will be published in 2007, a study of winery financial conditions, and a sensory consumer test on wine closures. The latter presentation included information on how closure type influences quality perception and how that impacts purchase intent and expected price. A joint paper on this topic with SENSORY AND CONSUMER SCIENCE was accepted for publication in 2007. A second joint paper on the impact of apple sweetness and firmness on willingness to buy is being finalized for submission. SENSORY AND CONSUMER SCIENCE continued to collaborate with food and horticultural scientists, economists, food producers and marketing groups to test a wide variety of
Northwest foods. Analysis was continued on data from consumer wine closure studies conducted in 2004 on a Chardonnay and a Merlot bottled with three different closures. A presentation on consumers reactions to screw-top premium wines at a Washington State University IMPACT center workshop, Marketing Washington Wines to the World. Two journal articles (one discussed above) were prepared from the complete analysis were accepted for publication in 2007 by the American Journal of Enology and Viticulture. Four consumer sensory tests were conducted in collaboration with Wasco County extension agent and Washington State University Horticulture Extension faculty to continue measuring consumer acceptance of new cherry varieties and of stemless cherries that are mechanically harvested. These consumer tests were also designed to compare acceptance for cherries just post-harvest versus cherries stored in commercial refrigeration for 2 weeks. Preliminary results have been analyzed and are in
preparation for presentation to the sweet cherry growers in early 2007. Support was also provided for consumer testing services provided for FIC clients in support of benchmarking new food products and formulations.
Impacts The food and agricultural industries are assisted by timely analysis and information regarding consumer valuation of food products and technologies and business decision-making techniques that improve efficiency and profitability. Food business research undertaken to better understand the planning process, decision making efforts, and market intelligence utilization for successful small businesses has better equipped us to help the food startups that seek our help. As a direct result of the difference tests from the wine closure study showing that consumers could not tell the difference between wines bottled with different closures, Hogue vineyards of Prosser, WA moved ahead to bottle several of their wines with screw cap closures. The winery reports to date that they have not seen diminished sales as a result of this change, but have significantly reduced consumer complaints and wine returns from wine cork spoilage. The interest of the wine industry is evident in the
invitation to present results at future meetings. Leadership in the Oregon Seed Council noted the usefulness of the grass seed demand studies to plan future overseas efforts.
Publications
- Kupferman, E.M., Marin, M. and Harker, R. 2005. Using consumers to determine standards for Red Delicious apple edible quality. Proceedings of the International Conference Postharvest Unlimited Downunder 2004. Acta Horiculturae 687:229-234.
- Whiting, M., Long, L.E. and A. Marin, A. 2006. Growers have many cherry varieties to choose from. Good Fruit Grower 57(10):10-11.
- Beaman, J.A. and A.J. Johnson. December 2006. Food Distribution Channel Overview. Oregon State University Extension Publication. EM 8921. http://extension.oregonstate.edu/catalog/pdf/em/em8921.pdf.
- Beaman, J.A. and A.J. Johnson. December 2006. Using Food Brokers. Oregon State University Extension Publication. Forthcoming. EM 8922. http://extension.oregonstate.edu/catalog/pdf/em/em8922.pdf.
- Beaman, J.A. and A.J. Johnson. December 2006. Using Food Distributors in the Northwest. Oregon State University Extension Publication. EM 8923. http://extension.oregonstate.edu/catalog/pdf/em/em8923.pdf.
- Beaman, J.A. and A.J. Johnson. December 2006. Grocery Retailers in the Northwest. Oregon State University Extension Publication. EM 8924. http://extension.oregonstate.edu/catalog/pdf/em/em8924.pdf.
- Johnson, A.J., J. Craig and C. Dibrell. 2006. A Snapshot of Australian Food Business. Statistical report of survey findings for report to respondents.
- Johnson, A.J. and C. Dibrell. June 30, 2006. Planning-Performance Links in US Food Businesses. Selected paper, Western Agricultural Economics Association Annual Meetings. Anchorage, AK.
- Grout, C., T. Egelkraut, and A.J. Johnson. June 21, 2006. The Power of Grounded Theory: Market Information Utilization by Small Agribusinesses. Selected paper for Western Education/Extension and Research Activities Committee on Agribusiness (WERA 72). Las Vegas, NV.
- Durham, C.A. and Vega-H, E. 2006. Technical assistance and trade servicing to increase overseas demand for grass seed. Agribusiness: An International Journal. 22(2):281-295.
- Eales, J. and Durham, C.A. Oct 17, 2006. Demand Elasticities for Fruit in the Supermarket. Federal Trade Commission, Washington D.C. Invited paper.
- Durham, C.A. and Marin, A. June 9, 2006. Wine Closures: Corks vs. Screw Caps? Oregon State University. Corvallis Oregon. Invited presentation.
- Durham, C.A. November 17, 2006. What is the Northwest Oregon Food Consumer Thinking about Organic? A presentation as part of the Direct Marketing and Viability of Small Farms Symposium at the Oregon Tilth Conference, Salem, Oregon. Invited presentation.
- Durham, C.A. June 29, 2006. Organic agriculture in the west: opportunities for research and outreach. Annual Meeting of the Western Agricultural Economics Association, Juneau, AK.
- Durham C.A. November 8, 2006. Winery Economics. Introduction to the Wine Business. Oregon State University, Corvallis, OR. Invited presentation.
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Progress 09/01/04 to 08/31/06
Outputs OUTPUTS: No new information to report. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.
Impacts No new information to report.
Publications
- No publications reported this period
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Progress 01/01/05 to 12/31/05
Outputs The activities reported below are part of an ongoing effort to grow and sustain the food industries of the Northwest. SENSORY AND CONSUMER SCIENCE continued to collaborate with food and horticultural scientists and economists and food producers and marketing groups to test a wide variety of Northwest foods. Analysis was continued on data from consumer wine closure studies conducted in 2004 on a Chardonnay and a Merlot bottled with three different closures and preliminary findings reported. Two consumer sensory tests were also conducted on Pacific NW oysters in collaboration with the Astoria Seafood Laboratory. In addition, consumer tests were conducted in collaboration with Wasco County extension agents to measure consumer acceptance of new cherry varieties. Consumer testing services were also provided for FIC clients in support of benchmarking new food products and formulations. MARKETING AND TRADE ECONOMICS research has continued its multidisciplinary efforts and is
collaborating on an analysis of the wine closure data that examines purchase probability, price expectation, and individual's wine buying habits and ratings of tasted wine's quality and level of liking. A similar study looking at the impact of apple firmness on purchase probability is also underway. Under the preceding project a number of initial studies of retail fruit demand were presented to an industry-academic group and published. One second stage study was presented and will be published in 2006 and two in-depth analyses are underway that examines fresh fruit price elasticities for consideration of policy to increase consumer fruit demand and to examine the in-store marketing activities that change fruit sales. A study to examine the impact of health and environmental motivations on organic preference and purchasing levels for fresh produce was presented and a paper developed and submitted for peer review. A related paper is under development. A survey of entrants into a food
competition offering prizes in food product and business development assistance was conducted to increase knowledge of new food entrant's educational and developmental needs. FOOD BUSINESS STRATEGIES conducted a mail-survey of food companies related to the planning process. The data has been collected and is being analyzed. Preliminary findings indicate best entry points to the food industry and the power of planning. The final research effort has been planned and slated for action in 2006. This research will look at the start-up process of food companies and identify the best practices of this process to increase the chances of success and reduce the amount of time required. All of this work has found its way into outreach activities. The main Outreach/Extension activity is an educational series offered to nascent food processors, helping them learn how to start and run a food business. As part of their outreach activities PACKAGING AND LOGISTICS ENGINEERING worked with NW food
companies in packaging design and selection, product development, and shelf life testing, and also planned and initiated the development of a RFID (Radio Frequency Identification) education lab.
Impacts The food and agricultural industries are assisted by timely analysis and information regarding consumer valuation of food products and technologies and business decision-making techniques that improve efficiency and profitability. One example of the importance of the projects undertaken is the wine cork closure study. In the first stage of the study it was found that average wine consumers cannot distinguish between wines closed with screw cap, synthetic, or natural corks for the wines tested. The second stage of the study in which the tasting consumers were informed about the closure type is providing new information that will help winemakers and marketers to develop strategies for educating wine consumers. In other activities results from economic analysis of consumers regarding ecolabels and organic foods have been examined that will help producers and food marketers better meet the concerns of consumers. Assistance to food business entrants can be improved by
assessment of their needs, experience, and decision-making. Packaging research studies and laboratory development have enabled the research team to assist more than 50 NW food companies in development of new value added food products, shelf-life testing, packaging labeling, selection, and quality evaluation.
Publications
- Durham, C.A., McFetridge, M.V. and Johnson, A.J. 2005. The Development of a Quality Scale to Measure the Impact of Quality on Supermarket Fruit Demand. J. of Food Distribution Research. 36(1):36-41.
- Johnson, A.J., McFetridge, M.V. and Durham, C.A. 2005. Store Level Retail Fruit Demand: Lessons from Omitted Variables. J. of Food Distribution Research. 36(1):91-94.
- McFetridge, M. V., Johnson, A. J. and Durham, C. A. 2005. Collecting Store Level Data on Retail Supermarket Sales. Journal of Food Distribution Research. 36(1): 107-109.
- Turner, J., Bai, J., Marin, A. and Colonna, A. 2005. Consumer Sensory Evaluation of Pear Cultivars in the Pacific Northwest, USA. Acta Hort. (ISHS) 671:355-360. http://www.actahort.org/books/671/671_50.htm.
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Progress 09/01/04 to 12/31/04
Outputs The research described below is part of an ongoing effort to better understand and to develop value-added agriculture and the potential for food innovation in the Northwest. This progress report does not contain publications from the last 3 months of 2004: all publications pertaining to 2004 were included in the ORE00538D report. The status of ongoing current research and new topics is explained as corresponds to the four areas characterized in the objectives: (1) marketing and trade economics, (2) sensory and consumer science, (3) packaging and logistics engineering, and (4) food business strategies. MARKETING & TRADE ECONOMICS: Soon to be published articles include studies on collecting in-store data for demand research for produce, the relevance of in-store factors and quality on fruit demand. Evaluation is also being made on the impact of not assessing these factors when looking at demand more generally. Current research projects include comparison of
environmental and health motivations for purchase of organic foods and demand for organic fruits when competing with conventional fruits in supermarkets. Multidisciplinary research between MARKETING and the SENSORY & CONSUMER SCIENCE group includes a study evaluating the use of acceptability versus purchasibility as a question to better define consumer preferences. The SENSORY group has also been conducting in-house and off-site consumer tests to evaluate a number of new Northwest products. Two of these tests were for ventures that the Food Innovation Center Experiment Station is also assisting in product and business development. PACKAGING & LOGISTICS ENGINEERING - The first test run of a packaging system for carbonated fruits and vegetables was completed. The recently developed packaging material, container, and supplier library and database is now being accessed. FOOD BUSINESS STRATEGIES: A number of studies are ongoing to look at what makes new and expanding business successful.
Current work evaluates the training program for Northwest food entrepreneurs and expands the program to work with larger numbers and to a next level of training.
Impacts The overall goal of the proposed project is to investigate promising market and product opportunities and solve marketing and technical problems for value-added food and agricultural businesses in the Pacific Northwest. Four project areas have been developed. MARKETING & TRADE ECONOMICS- The project will assist producer groups, industry, and government in decision-making for policy and strategic planning by providing analysis of economic conditions and promotional strategies for food & agricultural products. SENSORY & CONSUMER SCIENCE - Affordable testing and research capabilities in sensory and consumer science to support current & future regional product development efforts. An extensive database of diversified consumers developed for product testing continually updated and expanded for specific product testing. PACKAGING & LOGISTICS ENGINEERING - Research to solve industry packaging problems and to understand the distribution environment for food products.
Materials are developed and procedures undertaken to aid food processors and producers in testing and selecting packaging containers and materials. FOOD BUSINESS STRATEGIES - Professional journal and trade publications that communicate the findings to interested parties in academia, government agencies, private industry and other organizations. An educational curriculum to meet the needs of agricultural producers expanding into value added food production as well as the new entrant into the food processing industry. In all four areas research is evaluated by peer review in professional journals and meetings.
Publications
- No publications reported this period
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