Performing Department
Agricultural and Resource Economics
Non Technical Summary
Fresh fruits and vegetables have important roles in the efforts to reduce obesity rates and improve dietary habits in the United States (Cook, 2011). Demand for fresh produce has been increasing in the United States and is expected to continue growing due to governmental efforts to increase produce consumption per capita as well as an increased number of marketing and promotional messages focusing on the benefits of eating fresh fruits and vegetables (Cook, 2011; Food and Nutrition Service, USDA, 2015; Huang and Huang, 2007; Clemens, 2004). Between 1987 and 2011, U.S. per capita consumption of fresh fruits and vegetables rose 14% (U.S. Department of Agriculture, Economic Research Service, USDA-ERS).A large percentage of retailers have indicated that the role fresh produce play in healthy diets have finally translated into sales growth, with many produce departments showing fresh produce sales growth that is double the total store sales growth in recent years (Progressive Grocer, 2014). The increased popularity of fresh produce represents considerable potential for enhanced marketing revenues to producers if they can recognize and harness opportunities emerging from changes in food purchases. Meanwhile, producers and consumers need to be informed about the emergence of new business strategies, regulations and policies that may influence their confidence in (consumers) and competitiveness within (producers) this quickly innovating food marketing sector. An example of these regulations is the Food Safety Modernization Act (FSMA), which implicates new quality assurance and safety measures across the entire food supply chain (USFDA, 2011). The FSMA will also help to reduce food safety incidents, which reduce demand.In recent years, a large number of consumers have shown increased interest in foods produced in unique ways, including organic, local, pesticide free, free of genetically modified organisms (GMOs), environmentally sustainable, Fair Trade or as functional foods (Schroeder, n.d.) These individuals and households are also fueling changes in the food system as they seek to purchase their produce through diverse channels ranging from direct markets, e.g. on-farm markets, farmers' markets, community supported agriculture, pick-your-own, and roadside stands, to more traditional supermarkets, warehouse clubs, and big box stores (Low and Vogel, 2011), and with expectations as broad as picking their own produce to highly branded products with 3rd party certifications. This evolution has led a higher number of farmers to consider new ways to market their produce such as farmers' markets, farm-to-school and farm-to-institute programs, food hubs, and CSAs (Low et al., 2015).Still, the majority of fresh produce is marketed through more conventional, large-scale wholesale and retail partners (Bond et al., 2006) who are concerned about the efficiencies that such scaling-up strategies provide (Cook, 2011). Despite the belief that the fruit and vegetable segment of the food market is growing, little is known about the response of increasingly demanding consumers and food supply chain partners, the changing coordination and supply chain responses of fruit and vegetable enterprises or the response to regulations and policies developed to oversee and guide new innovations in this sector. In short, if these market conditions and relationships are not better understood,producers, wholesalers, and retailers are likely to remain reactionary to domestic and global shifts in consumer behavior and policy may be developed without a full assessment of potential implications for consumers and producers.(Summary drawn from S1067 submission material.)
Animal Health Component
0%
Research Effort Categories
Basic
75%
Applied
25%
Developmental
0%
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, Country of origin labeling, farmers markets, California/Arizona Leafy Greens Marketing Agreements) using both theoretical approaches and empirical evidence from multi-state applied research projects.
Project Methods
A variety of research approaches will be used to accomplish these research objectives. Firm and farm level studies frequently require primary data collection from business owners, buyers, and other industry stakeholders. This data will typically be gathered using a two-stage process. Qualitative research methods (i.e. in-depth interviews, focus groups), will be used to get a general understanding of the issue in question. Information collected through this first research phase will be used as an input into qualitative research instruments (i.e. surveys) which will be used to gather information from a broader number of participants.Studies which consider the impact of policies, regulations, standards, certifications andlabelingschemes,will make use of databases specifically developed for the project in question. In all cases, data will be assessed using appropriate analytical techniques to address research questions stemming from the research objectives.