Source: WEST VIRGINIA UNIVERSITY submitted to NRP
NICHE PRODUCTS: FEASIBILITY, SUSTAINABILITY, AND IMPLICATIONS FOR WEST VIRGINIA
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0223841
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Oct 1, 2010
Project End Date
Sep 30, 2015
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
WEST VIRGINIA UNIVERSITY
886 CHESTNUT RIDGE RD RM 202
MORGANTOWN,WV 26505-2742
Performing Department
Resource Management
Non Technical Summary
Improving the competitive position of small and mid-size enterprises (SMEs), declining over time as a result of reduced profitability and marketability of conventional products, and worsening lately in light of the global financial crisis, requires more efficient production processes, alternative products and marketing strategies. For example, production in intensive environments such as greenhouses could be more profitable and potentially less risky than extensive environments, particularly in areas where land, water, labor, and energy are scarce. The goal is to identify strategies for niche and value-added products that will improve SME business performance. This project is timely given that many niche products are more healthful, thereby improving health outcomes in areas such as Appalachia where one strategy to reverse declining economic growth and competitiveness could be to reverse growing obesity and health-related problems. In addition, focusing on SMEs could be an effective economic development strategy because most economic growth occurs at this level. Expected Outcomes: (1) Identification of new products to increase income and production processes to overcome production inefficiencies. By identifying strategies that integrate socioeconomic, cultural, behavioral and environmental factors with local market conditions, the performance and competitiveness of small and mid-size enterprises can be enhanced, resulting in the sustainable development of rural communities; and (2) Build individual and institutional capacity by engaging students and faculty in international teaching, research and service-based projects oriented toward preparing students and SMEs to enhance their competitiveness in domestic and international settings; and (3) Educate entrepreneurs on best business practices and the rules of engagement for market development, including competing in niche markets. In the process, to generate an inventory of knowledge, resources and resource personnel to assist SMEs with the identification and development of niche and value-added products as a strategy to enhance competitiveness in rural areas. Providing such information can facilitate business planning, in the process reducing the risk of business failure and improving performance and competitiveness of small and mid-size businesses.
Animal Health Component
(N/A)
Research Effort Categories
Basic
(N/A)
Applied
(N/A)
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
5013310301010%
5013320301010%
5013711301010%
5015010301010%
5016120301010%
5023320301010%
6011610301010%
6013320301010%
6046120301010%
7036120301010%
Goals / Objectives
The main goal is to identify optimal production and marketing strategies for niche and value-added products in order to improve the competitive position of micro businesses and, in the process, enhance rural economic development of WV in particular and the Appalachian region in general. The specific objectives are: 1. Conduct a product and market assessment, including identification of new markets, products and market strategies, to enhance the competitiveness of small and mid-size producers in WV; 2. Develop innovative student and faculty learning programs between WVU and Mexican universities to build international literacy and create interdisciplinary teams to foster collaborative research; 3. Conduct educational workshops in each location to exchange ideas and knowledge, thereby enhancing understanding of potential problems and solutions to product development and increasing competitiveness in each country
Project Methods
In general, we will use an interdisciplinary, multi-institutional, multi-location approach. The team has extensive international experience, and will partner with other disciplines (e.g., agronomy, animal sciences, horticulture, and engineering), and institutions in other locations (e.g., Puerto Rico and Mexico). Included are: (a) a business-related component (including market assessment and workshops focused on topics such as business planning, competing in niche markets, and enhancing production efficiency); and (b) an educational component to enhance global competency (through faculty and student travel programs, student internships, curricular development, and collaborative research). Conventional farm management techniques (including budgeting, marketing and financial feasibility analyses), together with applied economics techniques (optimization, econometric and spatial modeling) will be used. Data will come from primary (field) sources, surveys, secondary (published) socurces, and case studies. Results will be disseminated in journal articles, technical reports, and workshops and/or professional association conferences.

Progress 10/01/10 to 09/30/15

Outputs
Target Audience:Researchers; policy makers; agribusiness industry. Changes/Problems:1. One of the co-PIs (Maumbe) suddenly resigned mid-way through the project. 2. The PI (D'Souza) switched to an administrative role in 2014. 3. The extension to Paraguay was fortutitious, and happened because the PI was selected to visit that country and leacture on his research as part of a Fulbright scholarship. What opportunities for training and professional development has the project provided?Teams of students and young professionals from Latin America visited WVU for stays ranging from a complete degree program to short (10 day) student exchanges; and student teams from WVU visited both Mexico and Paraguay for short-term (10 day) visits. This pipleline should continue to grow and flourish in the years ahead, to the benefit of both countries. How have the results been disseminated to communities of interest?Publications in refereed journals; books and proceedings; presentations at professional association conferences; popular press articles; workshops; farm days; easily-accessible web-based tools. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? 1. Conduct a product and market assessment, including identification of new markets, products and market strategies, to enhance the competitiveness of small and mid-size producers in WV: successfully completed for trout, pasture-beef, and organic farm products. 2. Develop innovative student and faculty learning programs between WVU and Mexican universities to build international literacy and create interdisciplinary teams to foster collaborative research: successfully completed for Mexico and, subsequently, for the South American country of Paraguay. 3. Conduct educational workshops in each location to exchange ideas and knowledge, thereby enhancing understanding of potential problems and solutions to product development and increasing competitiveness in each country: successfully undertook in various locations in both Mexico, and Paraguay.

Publications

  • Type: Conference Papers and Presentations Status: Accepted Year Published: 2014 Citation: Shultz, C. and G. DSouza (presenter). Fresh Water: A Global Perspective. Invited presentation, 4th International Congress on Environmental Quality and Sustainability, Faculty of Economic Sciences, Universidad Nacional de Asuncion (UNA), Paraguay, October 16, 2014.


Progress 10/01/13 to 09/30/14

Outputs
Target Audience: Researchers and policy makers Changes/Problems: It should be noted that the PI is now a full-time administrator. What opportunities for training and professional development has the project provided? Once fully executed, it will enable capacity and team building for students and scholars at WVU and the Latin American host universities. How have the results been disseminated to communities of interest? Site visits and presentations to students, faculty, and stakeholders. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? As part of objective 1, we demonstrated that it is indeed possible to leverage the spatially integrated nature of production agriculture to foster a system whereby food, energy, and carbon offsets to mitigate climate change can not only enhance farm-level profitability, but also enable surrounding communities to benefit from high-quality food products, improved environmental quality, and rural economic development. Using the results of this analysis, we are expanding the research to look at the agriculture-alternative energy nexus in more detail. As part of objective 2, we are continuing to develop academic exchange agreements between WVU and Latin American universities. Toward this end, a signed agreement is in place between WVU and Universidad Nacional de Asuncion in Paraguay, the site of an earlier Fulbright-sponsored visit by the PI. This agreement has the full support of the local US Embassy in Asuncion, Paraguay, and we are exploring the imnplementation of this agreement using funding mechanisms such as President Obama's "100,000 Strong in the Americas" program. We are working on a similar academic exchange agreement with the University of Puerto Rico.

Publications

  • Type: Books Status: Published Year Published: 2013 Citation: Rodriguez, I. and G. DSouza. 2013. Land as a Renewable Resource: Integrating Climate, Energy, and Profitability Goals Using NetLogo. Scholars Press. 152 pp.


Progress 01/01/13 to 09/30/13

Outputs
Target Audience: Fellow researchers, policy makers, agribusiness industry. Changes/Problems: One of the co-investigators (B. Maumbe) left the institution in early 2013. His area of expertise (the agribusiness supply chain and strategic management) remains a void. What opportunities for training and professional development has the project provided? Laid the groundwork for continuing professional development of clientele groups (students, Extension Service, agribusiness, community) through workshops, academic exchange programs, and on-line decision-support tools. How have the results been disseminated to communities of interest? Presentations at the WV Small Farm Conference and a meeting of the Morgantown Farmers Market Growers Association as well as through press releases and the website of the West Virginia Food and Farm Coalition. What do you plan to do during the next reporting period to accomplish the goals? Finalize survey and modeling results, additional presentations oriented toward diverse audiences, and documentation in the scientific and the popular press.

Impacts
What was accomplished under these goals? We continued our analysesof how expanded specialty cropssuch as seasonal fresh fruits and vegetables as well as niche products such as pasture-raised beef can fit into achieving societal goals of improved environmental quality and energy independence alongside the goal of food production that could be more profitable for producers, more healthy for consumers, and more sustainable for communities. The results of the potential-for-expansion study show that WV has the land base to produce enough special crops to meet local seasonal demand. In particular, markets for specific vegetables were shown to have potential for significant economic impacts and job creation. These results have sparked interest among farmers and Extension personnel that encourage entry or expansion into these niche markets. As part of objectives 2 and 3, the PI also visited aLatin American country(Paraguay) under a Fulbright Educational grant to exchange ideas and knowledge and explore collaboratve research and educational opportunitiesinthe agriculture-environment-energy-economic development-policynexus between ourrespective institutions.

Publications

  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Rodriguez, I., G. DSouza, and T. Griggs. 2013. Can Spatial Dependence Enhance Industry Sustainability? The Case of Pasture-Based Beef. Environmental Economics 4: 93-102.
  • Type: Other Status: Published Year Published: 2012 Citation: Hartz, Laura, Daniel Eades, Cheryl Brown, Tom McConnell, Anne Hereford, and Fritz Boettner. West Virginia Food System: Seasonal production expansion and its impacts. Downstream Strategies. January 2012.
  • Type: Websites Status: Published Year Published: 2012 Citation: BEFERGYONET (Beef, Energy, NetLogo) Model, Center for Connected Learning and Computer-Based Modeling, Northwestern University, Evanston, IL. 2012: http://ccl.northwestern.edu/netlogo/models/community/. Developed by I. Rodriguez, then Ph.D. student, under the direction of G. DSouza, T. Griggs, and E. Rayburn.


Progress 01/01/12 to 12/31/12

Outputs
OUTPUTS: Research is underway to determine how niche agricultural products together with landscape attributes such as the built environment can address societal issues dealing with sustainable land use, obesity reduction, and economic development. The study area is Appalachia; however, the results have implications for other areas where niche products can contribute to sustainable economic development, particularly at the local level. The results were disseminated in the publication listed below. Additional manuscripts are being developed based on research recently completed or in progress. 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
Identifying and investing in niche products are expected to strengthen existing businesses, attract new businesses, enhance job opportunities and thereby alleviate poverty and create sustainable economic development in West Virginia.

Publications

  • Amarasinghe, A. and G. DSouza. 2012. Individual, Social, Economic, and Environmental Model: A Paradigm Shift for Obesity Prevention. ISRN Public Health vol. 2012, 1-10.


Progress 01/01/11 to 12/31/11

Outputs
OUTPUTS: Ongoing studies focus on pasture-based beef (PBB) as an emerging niche product in Appalachia, as well as the role of such niche products in sustainable economic development, particularly at the local level. The results were disseminated to researchers through the publications listed below. Additional manuscripts are being developed based on research recently completed or in progress. PARTICIPANTS: Not relevant to this project. TARGET AUDIENCES: Farmers in particular, and the agribusiness industry and policy makers in general. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
The primary goal is to provide information to assist producers, the industry and policy makers make better decisions. Secondary goals are to enhance profitability, better manage risk, and enhance industry sustainability. Toward this end, research is underway to better understand how PBB systems can fit into achieving societal goals of improved environmental quality and energy independence alongside the goal of food production that could be more profitable for producers, more healthy for consumers, and more sustainable for communities. Another study compared the costs and returns of supplemental forage production using a mix of warm and cool season forages, with those from naturalized pasture. A system where sudangrass was grown in summer and triticale in fall produced the highest economic returns when N was applied at the rate of 200 kg ha-1 and glyphosate was used as a method of preplant vegetation control. Results suggest that sudangrass can be used to supplement naturalized pasture in summer, and triticale and a mixture of annual ryegrass and turnip in fall for high quality and quantity supplemental feeds. Even higher returns are possible if fall annuals are harvested again in spring.

Publications

  • Rodriguez, I., G. DSouza and A. Collins. 2011. Social Benefits of Niche Agricultural Products: A Conceptual Framework. Environmental Economics 2: 9-23.
  • Rodriguez, I., G. DSouza, A Collins, and T. Phipps. 2011. Social Benefits of Niche Agricultural Products. Regional Research Institute (RRI) Research Paper #2011-06. West Virginia University. 30 pp. [http://rri.wvu.edu/research-2/working-papers-2].


Progress 01/01/10 to 12/31/10

Outputs
OUTPUTS: This is a new project, initiated in October 2010. We began an assessment of the sustainability (including profitability, environmental impacts, and energy balance) associated with pasture-beef production in hill country of WV. In addition, we are undertaking a separate cost-benefit (or budget) assessment of integrating CT (condensed tanin) legumes and dewormer banks into small ruminant diets; specifically, we need to estimate the establishment and maintenance costs, and compare them to animal performance data to determine economic and financial feasibility. We will use a combination of data from experimental/ demonstration plots and on-farm trials. The analysis is being undertaken jointly with researchers from the University of Puerto Rico; if successful, we will explore the adaptation under WV (hill land) conditions. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Beef cattle producers, small ruminant producers, policy makers, the cattle industry. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Using actual consumer panels and taste tests in grocery store settings, we determined the composition of the target market, consumer preferences, and willingness-to-pay for a niche product, pasture-based beef. We used this information, in turn, to develop strategies for producers to adjust their product mix such that they are able to exploit the target market as well as better manage their market and financial risk.

Publications

  • Mandal, M., J. Evans, and G.E. DSouza. 2010. New Advances in Risk Management of Niche Agricultural Products: Applications & Implications. Saarbrucken, Germany: VDM Verlag. 132 pp.