The direct to consumer farmers market sales

An article in Bloombergbusinessweek (May 21, 2012) describes the move by farmers to sell direct to the consumer in farmers markets – now accounting for 2 % of US farm sales. Since retail prices are often four times the price received by farmers, this direct to sonsumer model enables farmers to change their product from being commodities to now linked to specific farms as branded items. Will this direct to consumer model, which decreases the purchase flexibility for consumers, enable a more equitable distribution of profits across the produce supply chain ? Will the net margins for farmers, given their responsibility for perishable inventory until sales, increase ? Will these direct to consumer sales enable farms to brand their produce and command higher prices ?

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About aviyer2010

Professor
This entry was posted in Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , , , , . Bookmark the permalink.

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