Choices of Marketing Outlets by Organic Producers: Accounting for Selectivity Effects
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.
Year of publication: |
2006
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Authors: | Timothy, Park ; Luanne, Lohr |
Published in: |
Journal of Agricultural & Food Industrial Organization. - De Gruyter, ISSN 1542-0485. - Vol. 4.2006, 1, p. 1-26
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Publisher: |
De Gruyter |
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