ISHS Acta Horticulturae 242: I International Symposium on Diversification of Vegetable Crops
INCREASING THE MARKETING CAPACITY FOR A NEW VEGETABLE GROWING AREA |
| Author: | T. Clevenger |
| Abstract:
New vegetable growing areas are typically confronted with a "chicken or egg first" problem. That is, the farmers can produce the crops, but they do not because there is no market structure in the new location to accept the products. On the other hand, marketing agencies do not locate in the new region because there is not enough production volume to support their operations. As a consequence, the production and resultant marketing do not occur. Because of this problem, private industry is not willing to accept the initial cost and investment risk of a new venture. For problems of this nature, government programs usually begin the activity or service. After meeting certain criteria, the venture is transferred, over time, to the private sector. The problem of increasing the marketing capacity for a new vegetable growing area may be met through a public agricultural marketing company. The objective of the agricultural marketing company would be to provide a major market outlet for the new region's agricultural products, and thereby make profits. The agricultural marketing company would undertake the following:
Alternative arrangements incorporating public intervention to provide the marketing infrastructure necessary in a new vegetable growing area are discussed and evaluated. Factors contributing to success are noted. | |
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