The Changing Structure of Retail Food Stores, Direct Marketing (DM) and Its Impact on Farmers’ Financial Performance

Seydina Sene (), Krishna Paudel and Timothy Park

No 235736, 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association

Abstract: We examine the changing structure of retail food stores, direct marketing (DM), and its impact on farmers’ financial performance in the United States. We use a maximum simulated likelihood estimation with multinomial treatments and continuous measures of sales to accommodate the treatment effects relative to the base (no direct marketing). Our analyses indicate that on the changing structure of retail food stores, no direct marketing (base case) outlet is the most adopted channel by direct marketers compared to direct market to consumers only (Treatment-1), direct marketing to retailers only (Treatment-2), and direct marketing to both consumers and retailers (Treatment-3). We find that farmers who have chosen no direct marketing option show better earning performance compared to the other treatments or market outlets channel options from which earning decreases by 75%, 19%, and 11%, respectively under Treatment-1, T-Treatment-2 and Treatment-3 from 2008 to 2010. Direct marketers who are more likely to choose either Treatment 1-3 option relative to no direct marketing on the basis of their unobserved characteristics, choose direct marketing less and less.

Keywords: Agribusiness; Agricultural and Food Policy; Agricultural Finance; Community/Rural/Urban Development; Consumer/Household Economics; Demand and Price Analysis; Farm Management; Financial Economics; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; International Development; International Relations/Trade; Labor and Human Capital; Production Economics; Productivity Analysis; Research and Development/Tech Change/Emerging Technologies; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 30
Date: 2016
New Economics Papers: this item is included in nep-agr and nep-mkt
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea16:235736

DOI: 10.22004/ag.econ.235736

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