Source: UNIVERSITY OF PUERTO RICO AT MAYAGUEZ submitted to NRP
STUDY OF NEW AND CURRENT POTENTIAL MARKETS OF AGRICULTURAL PRODUCTS IN PUERTO RICO
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
1001038
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Oct 1, 2013
Project End Date
Sep 30, 2018
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
UNIVERSITY OF PUERTO RICO AT MAYAGUEZ
P. O. BOX 9000
MAYAGUEZ,PR 00681
Performing Department
Agri Economics & Rural Sociol
Non Technical Summary
Puerto Rico produces only 15% of the food consumption. Most of the food consumed in Puerto Rico is imported from the USA and foreign countries. It is of paramount importance to stimulate the preference for locally produced food. The consumer preference for locally produced food will stimulate the demand for our products. Some of the strategies to achieve this goal are to differentiate the production, to increase quality, and to identify place of origin, age, and special characteristics of products people use to buy. Our farmers and processors should provide consumers new alternatives such as organic products, processed food, value added and exotic foods. Surveys among producers and consumers in supermarkets, food fairs, agricultural markets will be conducted to collect data. We will also analyze the current market structures integrating the acquired knowledge regarding the productivity and critical economic situation of the agricultural sector. The analysis will consider the food security issue emphasizing in local staple products. We expect to develop marketing strategies to increase agricultural production to provide a higher amount of food supply in supermarkets, food fairs, agricultural markets, and niche products in different market scenarios.
Animal Health Component
80%
Research Effort Categories
Basic
20%
Applied
80%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6045010301035%
6046220301040%
6046010301025%
Goals / Objectives
1- To determine marketing margins, and other participants' share in the marketing channels of selected agricultural commodities. 2- To describe changes in the market structure, trajectory and performance of selected enterprises. 3- To study consumers' tastes and preferences for selected food products, and to study changes in their preferences according to new offers in food supply, especially for convenience food (high value added products), organic and specialty products.
Project Methods
Present agricultural structure will be analyzed to determine the potential of selected foods or group of foods to be marketed. Data will be collected by several methods, primary and secondary sources including but not limited to sample surveys and use of records of production, costs, and sales of selected food products produced on specific farms. Sales data of wholesalers and retailers will also be analyzed. Data from government agencies will be analyzed to determine the impact of imports on our markets. Surveys to selected food producers will be conducted to determine their availability to increase production in order to substitute imports. We will also be evaluating the quality of the product, presentation, prices and any other important characteristics for consumers. Aleatory surveys will be conducted among consumers in supermarkets, agricultural markets and food fairs to determine their food preferences and tastes. In addition, we will determine the range of prices they are able to pay. Statistical analyses will be conducted to determine the validity of the results using regression analysis, the level of significance of Pearson's chi-square statistic will be 0.05. Elasticity tests will be conducted to evaluate viability of price ranges. Publication of articles and participation in conferences and activities with extension personnel are planned to disseminate research results. Data on consumers' preferences for identified foods will be shared with producers; it is expected that as a consequence production will be increased. This research will help to design strategies to stimulate consumers to substitute food imports for local production, fresh or processed, all of which will increase the importance of the agricultural sector in Puerto Rico. We expect to increase the compromise of households to produce part of their food in home gardens.

Progress 10/01/13 to 09/30/18

Outputs
Target Audience:1- Puerto Rico Department of Agriculture administrators. 2- Researchers, extensionists, faculty, students of the College of Agricultural Sciences. 3- Farmers, processors, persons in charge of marketing strategies in the commercial sector. 4- Private and governmental agencies related to the agricultural sector. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?Conferences, professional articles, radio programs (Podcast) and Agricultural Markets class will be available for training and proffesional development. How have the results been disseminated to communities of interest?Peer review articles, AES articles, conferences, newspaper articles, radio programs (Podcast), Agricultural Markets class. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? The Family Market Program is a new and important agricultural niche in Puerto Rico. The markets are focused on low-income families who participate in the NAP and WIC federal programs. The results of the survey provided valuable data on Family Market organization, farmers, and consumers. The initiative of the Family Market has been beneficial for both farmers and the consumers, who are the primary beneficiaries of this initiative. Its impact has a greater reach than seen at first glance because economically, farmers who are not registered in the initiative benefit from the Family Market because their production supports the sales of farmers/vendors in the program. The economic activity of the municipalities where family markets have been established is strengthened by the activity generated, such as selling prepared food and other products unrelated to agriculture, use of public transportation, and the interest of consumers who are not NAP and the WIC beneficiaries, the primary focus of this initiative. This initiative responds to advancing the food security of the country. This study provides accurate information to recommend that the government make all efforts to establish this pilot program as a permanent program. The most important achievement was that this program was established as a permanent one and the farmers and consumers will be beneficiated. From august 2013 to 2018 the economic impact to the agricultural sector of the Family Markets was more than $70 millions, and the families improve their access to fresh and locally produced food. On April 2016 the United States Secretary of Agriculture approved the PR Family Markets as a regular component of the Nutritional Assistance Program (NAP). It was a great achievement for the NAP participants in the island and also for Puerto Rico's farmers, especially for the small and medium-sized sectors. The PR Department of Agriculture representatives recognized that the results of this project were decisive for the permanent approval of the Family Markets program in PR. Radio (Podcast) , newspaper articles, conferences and a peer review article were presented. A survey to coordinators of selected permanent agricultural markets (AM) in PR were interviewed, such as farmers and consumers to determine the structure of these markets, preferences of this consumers and to establish the differences between FM and AM. There are no previous data regarding the preferences of vegetables in PR. The vegetable production in PR is the sector with more potential to substitute imports, considering that in Puerto Rico only 15% of the food consumption is produced locally. A survey to consumers was conducted to determine preferences for vegetables. This research provides data of paramount importance to establish crop production priorities. There are no previous data regarding the preferences of farinaceous in PR, this sector includes plantain and banana and root and tubers all of them staple food for the population. A survey to determine consumer preferences for farinaceous was also conducted. This research will contribute to the farinaceous commodity in the establishment of crop production. Two surveys to restaurants and breadfruit consumers were conducted to determine the potential of a processed breadfruit industry in PR. This fruit is one of the preferred fruits in PR and it may be a new potential processed product. All these research will contribute to establish production and marketing decisions regarding selected agricultural products. A new class of different agricultural markets was design to introduce and familiarize College of Agricultural Sciences students with the research theme.

Publications

  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Cortes M. y L. Gayol. Analisis descriptivo del establecimiento de los Mercados Familiares en Puerto Rico, 2014. JAUPR 101 (1):143-157


Progress 10/01/16 to 09/30/17

Outputs
Target Audience:The target audience are professors, extensionists, Dept. of Agriculture administrators, personnel in charge to determine public policies, farmers, merchants and inversors in agricultural issues. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?This project provided valuable research results to present to government personnel to support the establishment of sound public policies. The results are also favorable to farmers, providing important data on consumer preferences and recommendations. Conferences, workshops, articles and reports will be offered. How have the results been disseminated to communities of interest?These results were disseminated to the community using different means; newspaper articles, national and international meetings, oral presentations. Currrently, we are presenting the research results in various forums. Peer review articles are in process. What do you plan to do during the next reporting period to accomplish the goals?I will continue to present research results at commodity meetings, conferences and workshops. Research will continue to accomplish project objectives. The results of a survey of agricultural markets have been analyzed and will be published. A consumer survey on vegetables is being conducted. Data will be analyzed and published. A consumer survey on farinaceous products will be conducted and analyzed. Newspaper articles, radio programs, workshops and conferences will continue to be used.

Impacts
What was accomplished under these goals? The main objectives of the projects are being considered in the research conducted. 1- To determine marketing margins, and other participants' shares in the marketing channels of selected agricultural commodities. 2- To describe changes in the market structure, trajectory and performance of selected enterprises. 3- To study consumer tastes and preferences for selected foods, and changes in their preferences according to new offers in food supply, especially for convenience food (high value-added products), organic and specialty products, new and niche products. A manuscript with research results was written and submitted to the Department Director and Editor's office. It's been revised by peers and will be published in the Journal of Agriculture of the University of Puerto Rico (JAUPR). Included are the results of surveys to the Family Markets (FM) Administrator, farmers-sellers and consumers. The result of this research provided valuable data to the Secretaries of the Department of Agriculture and Department of Family of Puerto Rico to support their petition to the United States Secretary of Agriculture to turn the FM pilot program into a permanent program of the Food Nutrition Program (FNP). On April 2016, the United States Secretary of Agriculture approved the PR FM as part of the FNP. It was a great achievement for the participants and, especially for small and medium-size farmers. Consumers will always have access to fresh locally produced fruits, farinaceous foods and vegetables, and the farmers will have a place to sell their products. In October 2016, the PR Dept. of Agriculture reported FM sales valued at $50 million since the program's start in August 2013. The PR Dept. of Agriculture representatives recognized that the results of this project were determinant in achieving permanent approval of the FM program in PR. As part of the research, we prepared a detailed presentation and report of all the findings. This report was the principal tool the DA personnel used to document their interest in this program. Two other questionnaires were designed to collect data on consumer preferences related to farinaceous products and vegetables. The vegetable questionnaire is being conducted.

Publications

  • Type: Journal Articles Status: Submitted Year Published: 2017 Citation: Cort�s M. y L. Gayol. An�lisis descriptivo del establecimiento de los Mercados Familiares en Puerto Rico, 2014. Submitted to the editors office of the Journal of Agriculture of the University of Puerto Rico(2017).


Progress 10/01/15 to 09/30/16

Outputs
Target Audience:The target audiences are professors, extensionists, Dept. of Agriculture administrators, personnel in charge of determining public policies, farmers, merchants and investors in agricultural issues. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest?This project provided valuable research results to government agencies personnel to support them in the establishment of public policies. These results were disseminated to the community using different strategies: newspaper articles, national and international meetings, oral presentations. At present we are still presenting the research results in various forums. Peer reviewed articles are in process. What do you plan to do during the next reporting period to accomplish the goals?I will continue to present research results at commodity meetings, conferences and workshops. I also plan to continue with the pending research activities of the different project objectives. A survey of vegetables consumers is being conducted. Data will be analyzed and published. A survey of farinaceous crops consumers will be conducted and analyzed. Newspaper articles, radio programs, workshops, and conferences will continue.

Impacts
What was accomplished under these goals? The main objectives of the project are being accomplished in the research conducted. A manuscript with research results was written and submitted to the Agricultural Economics and Rural Sociology Department director and to the Journal of Agriculture of the University of Puerto Rico (JAUPR) Editor's office. At present It is being reviewed by peer colleagues. The manuscript includes results of the surveys conducted with Family Markets (FM) Administrators, and with farmers-sellers and consumers at these markets. The results of this research provided valuable data to Puerto Rico's Secretaries of Agriculture and of the Family Department to sustain their petition to the United States Secretary of Agriculture, to turn the FM pilot program into a permanent program of the Food Nutrition Program (FNP). On April 2016 the United States Secretary of Agriculture approved the PR FM as a regular component of the FNP. It was a great achievement for the FNP participants in the island and also for Puerto Rico's farmers, specially for its small and medium-sized sectors. The participants will always have access to fresh, locally produced fruits, farinaceous crops, and vegetables, and the farmers will have a secure place to sell their products. In October 2016 the PR Dept. of Agriculture (PRDA) reported that since the beginning of the program in August 2013, the FM sales value has amounted to $50 millions. The PRDA representatives recognized that the results of this project were decisive for the permanent approval of the FM program in PR. As part of the study we prepared a detailed presentation and report of all the findings of the research and shared it with PRDA officials. This report was the principal tool the PRDA personnel used to document their interest in this program. Two other questionnaires were designed to collect data on consumer preferences of farinaceous crops and vegetables. The vegetable questionnaire has been already administrated.

Publications


    Progress 10/01/14 to 09/30/15

    Outputs
    Target Audience:Research Scientist personnel Extension Service personnel Faculty personnel Students Department of Agriculture personnel Agricultural Financial Agencies personnel Farmers General public Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest?By the official manuscript of the project, radio, newspaper and conferences. What do you plan to do during the next reporting period to accomplish the goals?Prepare the next commodities manuscript, radio programs, newspaper articles, conferences.

    Impacts
    What was accomplished under these goals? To communicate people the relevance of the agriculture to support Food Security. To provide interested agencies accurate analysis of the agricultural commodities in Puerto Rico and their future perspectives. Most people in Puerto Rico are understanding the potential of the agricultural sector providing food, jobs, incomes and increasing the life quality of people.

    Publications


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

      Outputs
      Target Audience: Department of Agriculture of Puerto Rico administrators Family Department of Puerto Rico administrators Farmers participating in the Department of Agriculture and Family Department, "Family Market Program" Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? 1-An oral presentation of survey results was made to the administrators of the Agriculture and Family Departments (Dr. Myrna Comas and Ms. Idalia Colón and their respective staffs). 2-An oral presentation of survey results was made to participating farmers in the Family Market Program. 3- An article published by a local agricultural newspaper highlighted the relevance of this program for farmers and consumers. The article also included some of the most important survey results. What do you plan to do during the next reporting period to accomplish the goals? I will prepare a peer-reviewed article and oral presentations of research results for local forums. Research to accomplish project objectives will continue.

      Impacts
      What was accomplished under these goals? Conducted the first survey of the manager, farmers and consumers in the Family Market Program, a new and important agricultural niche in Puerto Rico. The markets are focused on low-income families who participate in the NAP and WIC federal programs. The results of the survey provided valuable data on Family Market organization, farmers, and consumers. At the time the survey was conducted, there were 62 registered farmers from 27 municipalities on the island. The markets were open to the public during four days per month. Farmers do not pay a fee to participate but are required to have scales certified by the Puerto Rico Department of Consumer Affairs, point of sale devices and shopping bags. The manager noted that the Family Market program has had a direct impact on the agricultural economy, resulting in an increase in acreage planted due to greater demand for locally produced foods. The program has also been instrumental in raising farmers' income. Most farmers interviewed reported gross income between $12,000 and $60,000 monthly from farming activities. Nine reported income between $12,000 and $20,000; eight, between $40,000 and $60,000, and two between $60,000 and $80,000. One reported income over $80,000. The majority of farmers surveyed noted that their incomes were higher by a large measure than the income they usually report from sales of produce; 62.1% said they also sell in other markets and 37.9% said they sell in only one market. A total of 96.6% produce what they sell and also buy produce for re-selling. One farmer (3.4%) only sells what he produces. Of the farmers/vendors that both produce and buy agricultural products, 27.6% produced 15% to 40% of what they sell at their point of sale. A majority of 51.7% produces from 50% to 75% of their sales. Only 17.2% produced 80% to 100% of what they sell. Most of them sell farinaceous foods, such as, yam, arracacha, sweet potato, cassava, dasheens, tanier and breadfruit; vegetables, such as avocado, lettuce, squash, pickle, tomato, peppers, cilantro, pumpkin and herbs, plantain and green banana; fruits, such as oranges, pineapple, papaya, banana; and other produce. Most of the farmers (14) had from 1 to 40 acres of farmland, 11 of them had more than 90 acres of farmland. Most of those interviewed (21 farmers) said that they have created between 6 and 12 jobs. A total of 82% indicated that they preferred to produce for the Family Market. One hundred percent of the farmers/vendors responded that the Family Market Program is beneficial to them as farmers. For this study, 288 interviews were conducted among consumers of family markets. Most families were comprised of three members (22%) and 17% had four. The annual income of 92.2% of the families was less than $12,000. A total of 94.4% participated in the NAP and 28% in WIC; 86.5% said they were invited to participate in the Family Market Program by the NAP or the WIC program. The most important produce purchased were fruits, vegetables and farinaceous foods. The products most frequently purchased by consumers in the survey were tomato, banana and farinaceous foods; preferred farinaceous foods were plantains, yams, dasheens, banana, sweet potato, cassava and arracacha. A total of 99.3% responded that they were well oriented by the staff of both agencies, the Departments of Agriculture and the Family. One hundred percent of consumers surveyed said they considered that the Family Market Program contributes to the agriculture sector; 98.9% responded that the program is a benefit for the consumers and that the products were of high quality, fresh and safe. Some 96% believed that the markets will prevail. The initiative of the Family Market has been beneficial for both farmers and the consumers, who are the primary beneficiaries of this initiative. Its impact has a greater reach than seen at first glance because economically, farmers who are not registered in the initiative benefit from the Family Market because their production supports the sales of farmers/vendors in the program. The economical activity of the municipalities where family markets have been established is strengthened by the activity generated, such as selling prepared food and other products unrelated to agriculture, use of public transportation, and the interest of consumers who are not NAP and the WIC beneficiaries, the primary focus of this initiative. This initiative responds to advancing the food security of the country. This study provides accurate information to recommend that the government make all efforts to establish this pilot program as a permanent program.

      Publications