Choices of Marketing Outlets by Organic Producers: Accounting for Selectivity Effects
Timothy Park and
Luanne Lohr
Journal of Agricultural & Food Industrial Organization, 2006, vol. 4, issue 1, 26
Abstract:
Organic farmers have traditionally relied on a variety of marketing channels, suggesting that earned organic income will depend on the farmer's experience in producing and selling organic products and their comparative advantage in bargaining and marketing skills. A discrete choice model of the choice of marketing channels is developed which accounts for the role of selectivity bias. Farmers who are most likely to sell through a diversified set of outlets or to use a single outlet have increased earnings relative to farmers who overlook these marketing options. Producers with less experience gravitate toward use of a single marketing outlet while more experienced producers tend to diversify and market through all three channels. Constraints in selling organic products tends tend to have a negative effect on farm income.
Keywords: bargaining models; marketing outlets; organic production; selectivity correction (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (14)
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Persistent link: https://EconPapers.repec.org/RePEc:bpj:bjafio:v:4:y:2006:i:1:n:4
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DOI: 10.2202/1542-0485.1129
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