Benefits, Challenges and Trade-Offs: Buyer and Contract Characteristics Valued by Small Farm Suppliers to Wholesale Marketing Channels

Abstract

There is increasing interest in accessing local food products through 'conventional' food marketing systems. This study identifies and quantifies key contract characteristics and buyer attributes valued by small-scale produce farmers who are currently or are considering marketing into wholesale channels. Overall, produce farmers are receptive to entering into contracts with wholesale buyers. Substantial heterogeneity, however, is found among farmer attitudes toward the specific contract terms and in the trade-offs farmers are willing to accept between contract terms and buyer characteristics. Insights offered will enable produce buyers to more efficiently target potential suppliers and will facilitate more effective contract design.

Keywords

• fruits
• mixed logit
• specialty crops
• vegetables
• wholesaler
• willingness to accept
• willingness to pay