Market‐orientated Positioning of On‐farm Processed Foods as a Condition for Successful Farm Diversification

Xavier Gellynck and Jacques Viaene

Journal of Agricultural Economics, 2002, vol. 53, issue 3, 531-548

Abstract: Farm diversification is stimulated within the reform of the common agricultural policy. On‐farm processing and direct marketing are options, but farmers often lack a marketoriented approach. This paper illustrates the problem by presenting a consumer survey regarding on‐farm processed yoghurt. Conjoint analysis is used to define the most preferred yoghurt in different market segments. Results of the price sensitivity meter are similar to the conjoint analysis. Farmers' price setting is not always adequate, which means that opportunities and additional income are lost. Providing the necessary assistance in collecting market information and commercial training is essential in obtaining sustainable benefits from on‐farm processing and direct marketing.

Date: 2002
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