Bargaining Associations in Grower-Processor Markets for Fruits and Vegetables

Julie Iskow and Richard Sexton

No 279811, Research Reports from United States Department of Agriculture, Rural Development

Abstract: Fruit and vegetable bargaining associations representing 36 commodities have an average market share of 60 percent and an average membership of 310 growers. In addition to raw product price, the terms of trade most frequently bargained for are “time and method of payment” and “quality standards.” The buying industries faced by growers appear to be quite concentrated. Forty percent of the associations reported having less than five processors in their market area, and 67 percent indicated that the four largest processors purchase more than 75 percent of their association’s production. Higher prices and more stable prices were the most frequently cited objectives of the participating associations. Lack of volume control and failure to get adequate membership were reported as the most common obstacles encountered by associations in achieving their objectives. Limited alternatives are available if bargaining fails. The most frequently cited course of action was to take legal action to enforce “good faith bargaining” laws where applicable.

Keywords: Crop Production/Industries; Marketing (search for similar items in EconPapers)
Pages: 25
Date: 1992-03
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:urdbrr:279811

DOI: 10.22004/ag.econ.279811

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