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PUBLIC MARKETS AND THE DEVELOPMENT OF THE FRESH-PRODUCE INDUSTRY

Authors
Disciplines
  • Communication

Abstract

191 Public Markets and the Development of the Fresh-produce Industry David Eastwood, Charlie Hall, John Brooker, Edmund Estes, Timothy Woods, and Forest Stegelin reveal the importance of the inherent simultaneity associated with market development and the syn- ergy associated with having a variety of marketing activities occur at centralized locations. Neither Kentucky nor Tennessee have public outlets for produce marketing other than retail. Hence there is little incentive for growers to pro- vide adequate supply to attract stakeholders who are involved in other market channel activities, such as brokering, wholesaling, and repacking. Georgia and North Carolina have created facilities that permit many elements of the distribution channel to operate in close proximity at selected public farmers= mar- kets. The variety of marketing activities that occurs encourages production. Growers have alternative outlets available at centralized locations. Similarly, wholesalers, brokers, and repackers can operate on their own and have the retail markets as backups to fill unexpected orders. The breadth and scale of operations tends to be self-sustaining. One characterization of the dichotomy between the successful versus less successful states in terms of produce market development seems to be that the primary focus in Georgia and North Carolina is on wholesale activity, with retail (farmers= markets) added as a secondary element. Wholesale rental fees help to offset losses incurred by the retail markets. Another notable difference is that market managers and other employees in Georgia and North Carolina are state employees, whereas markets in Kentucky and Tennessee are not supported by the state. Eastwood, Hall, and Brooker are professors, University of Tennessee; Estes is a professor, North Carolina State University; Stegelin is an associate professor, University of Georgia; and Woods is an associate professor, University of Kentucky. Four states (GA, KY,

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