What is the New Version of Scale Efficient: A Values-Based Supply Chain Approach

Allison Gunter, Dawn Thilmany and Martha Sullins

Journal of Food Distribution Research, 2012, vol. 43, issue 01, 8

Abstract: Although the growth in direct markets suggests a significant jump in local food purchasing by households, direct marketing still only accounts for a small percentage of total food sales because conventional food supply chains account for the great majority of food dollars. Since these traditional outlets are often unable to integrate local products from small and mid-size producers, new opportunities have arisen for farmers to reach wholesale markets. But the economic question is whether these innovations can compete in terms of efficiency, since the transaction costs associated with product distribution are likely to rise if new systems do not achieve scale economies. The goal of this study is to determine what scale would be needed for a local food distributor located in Northern Colorado to be financially feasible. Since the mission of the distributor is to increase local food access for wholesale buyers and provide a market outlet for small and midsize producers; financial feasibility is a necessity but profit is not the primary goal.

Keywords: Agribusiness; Food Consumption/Nutrition/Food Safety; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Date: 2012
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/139447/files/Gunter_43_1.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:jlofdr:139447

DOI: 10.22004/ag.econ.139447

Access Statistics for this article

More articles in Journal of Food Distribution Research from Food Distribution Research Society Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().