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What product mix do they offer and what marketing channels do they use? – Exploring agricultural producer organisations' heterogeneity.

Authors :
Fałkowski, Jan
Chlebicka, Aleksandra
Source :
Journal of Rural Studies; Jul2021, Vol. 85, p1-12, 12p
Publication Year :
2021

Abstract

Agricultural producer organisations, the entities which aim at grouping farmers together, have become increasingly important in the food supply chain. In addition, they are widely viewed as having the potential to considerably contribute to rural people's wellbeing. Yet, we have only a limited understanding of the way in which these collective action organisations operate on the market. In response to this, the paper makes two contributions. First, our research documents an enormous variety in market behaviour of these organisations. This concerns both the product mix they offer and marketing channels they use. Second, drawing on recent advancements in theories of the firm, our analysis seeks to provide some insights on the nature and determinants of this heterogeneity. While the evidence we provide reflects merely conditional correlations, it points to two interesting regularities. On the one hand, it suggests that supplying large retail chains is positively associated with the organisations' size and openness to accept deliveries from non-members. On the other hand, it suggests that organisations operating in a more competitive environment offer less products than organisations that face lower pressure from the competition. Our specific example comes from the fruit and vegetable sector in Poland, a country which is among the biggest fruit and vegetable producers in the European Union. • We have only a limited understanding of the way in which agricultural producer organisations (POs) operate on the market. • Our research documents an enormous variety in market behaviour of POs. • POs under study are often multiproduct organisations that combine simultaneously different marketing channels. • POs supplying retail chains seem to be larger and more open to accept deliveries from non-members than other POs. • POs operating in a more competitive environment offer less products than POs that face lower pressure from the competition. • Our example comes from the fruit and vegetable sector in Poland, one of the biggest fruit and vegetable producers in the EU. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
07430167
Volume :
85
Database :
Supplemental Index
Journal :
Journal of Rural Studies
Publication Type :
Academic Journal
Accession number :
150818327
Full Text :
https://doi.org/10.1016/j.jrurstud.2021.05.002