ASSESSING THE CONSUMER BEHAVIOR, MARKET COORDINATION AND PERFORMANCE OF THE CONSUMER-ORIENTED FRUIT AND VEGETABLE SECTOR

• Sponsoring Institution: National Institute of Food and Agriculture
• Project Status: COMPLETE
• Funding Source: HATCH
• Reporting Frequency: Annual
• Accession No.: 0224109
• Multistate No.: S-1050
• Project Start Date: Oct 1, 2010
• Project End Date: Sep 30, 2015
• Program Code: [(N/A)]- (N/A)

Project Director
Toensmeyer, UL.

Recipient Organization
UNIVERSITY OF DELAWARE
(N/A)
NEWARK,DE 19717

Performing Department
Applied Economics and Statistics

Non Technical Summary
The increase in consumer interest in the the consumption of fruit and vegetables has resulted in the need to assure the most efficient marketing system in order to minimize any additional costs in order to keep prices within the reach of consumers. Also an efficient marketing system assures consumer a safe supply of fruits and vegetables. Consumers are looking for new and diverse channels through which they can purchase their fruits and vegetables. The project will look at the various present and potential new outlets, even possible internet purchases from roadside markets. The outcome will provide useful information to policy makers on the market performance of fresh produce enterprises.

Animal Health Component

75%

Research Effort Categories

Basic

25%

Applied

75%

Developmental

(N/A)

Classification

Knowledge Area (KA)	Subject of Investigation (SOI)	Field of Science (FOS)	Percent
603	1499	3010	34%
604	1499	3010	33%
607	6299	3010	33%

Knowledge Area
603 - Market Economics; 604 - Marketing and Distribution Practices; 607 - Consumer Economics;

Subject Of Investigation
1499 - Vegetables, general/other; 6299 - Marketing, general/other;

Field Of Science
3010 - Economics;

Keywords

fresh produce

local produce

marketing

supply chains

market policies

consumer demand

market performance

Goals / Objectives
Develop demand and market valuation models for the produce sector that can be used to evaluate effects of increasingly complex product differentiation schemes (organic, enhanced health claims, biodynamic), trade, commodity marketing programs, labeling programs (local, food miles, Fair Trade), traceability systems, and food safety events in the U.S. produce markets. Analyze the relative benefits and costs, to producers and consumers, of government and industry-led marketing and policy programs (certifications, Leafy Greens marketing order, Country of origin labeling, farmers markets) using both theoretical approaches and empirical evidence from multi-state applied research projects. Assess the changing coordination and supply chain management strategies being implemented in the fruit and vegetable sector and identify strategic organizational and marketing implications for a set of firms that are diverse in terms of commodity, marketing approach and size of operation (including small and mid size farms).

Project Methods
Secondary data and field survey will be done to describe the present state of the fruit and vegetable marketing systems. Then an analysis will be made to recommend any changes and consumer input will be asked for via a survey. Will be cooperating with other stations in regards to determine costs and benefits of various industry and government led marketing and policy programs- such as country of origin, farmers markets and certifications.

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

Outputs
OUTPUTS: Presentations: "Transitioning a Farm to Organic Production and Marketing", Research Update 2011, Food Distribution Research Society Annual Meeting, October 15-19, 2011, Portland, Oregon. PARTICIPANTS: One undergraduate student (Lenny Miles) assisted with this project. TARGET AUDIENCES: People contemplating going into organic vegetable production and marketing. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
The purpose of this project is to develop production and marketing guidelines deemed necessary for transitioning from conventional into organic production. The material to be develop will be designed specifically for organic food production and marketing in the Mid-Atlantic Region (Delaware, Maryland, and Pennsylvania). Research work started April 2012. A draft paper is being reviewed the report consists of the following topics: Organic Transition Phase, Organic System Plan, Farming Considerations, Organic Vegetable Considerations, Marketing Considerations. Additional work needs to be done specifically in the Marketing phase. This additional work will take us into spring 2013.

Publications

• Toensmeyer, Ulrich C., and Miles,Lenny. 2012. "Transitioning a Farm to Organic Production and Marketing". Journal of Food Distribution Research, Volume, pp, March 2012. The March issue is not available at this time and therefore cannot get the volume number and page numbers.

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

Outputs
OUTPUTS: Presentation: German, Carl, Toensmeyer, Ulrich and Mills, Lenny: "Transitioning a Farm to Organic Production and Marketing", Research Update 2011, Food Distribution Research Society Annual Meeting, October 15-19, 2011, Portland, Oregon. PARTICIPANTS: Carl German, - State Agr. Extension Marketing Specialist, Lenny Miles - Student worker TARGET AUDIENCES: People contemplating going into organic vegetable production and marketing. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
We are developing a plan that describes how to effectively convert from conventional to organic production and marketing, in the Mid-Atlantic Region (Delaware, Maryland and Pennsylvania). We are in the process of selecting which vegetables would best suit this Region both from a production and marketing aspect.

Publications

• No publications reported this period