INCREASING THE MARKETING CAPACITY FOR A NEW VEGETABLE GROWING AREA

T. Clevenger
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:

  • locate markets for products,
  • contract or arrange with producers to produce products,
  • arrange to sell products for a fee,
  • buy products to resell, or process and resell,
  • arrange for the processing or packing of products.

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.

Clevenger, T. (1989). INCREASING THE MARKETING CAPACITY FOR A NEW VEGETABLE GROWING AREA. Acta Hortic. 242, 59-64
DOI: 10.17660/ActaHortic.1989.242.6
https://doi.org/10.17660/ActaHortic.1989.242.6

Acta Horticulturae