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The Financial Performance Implications of Differential Marketing Strategies: Exploring Farms that Pursue Local Markets as a Core Competitive Advantage

  • Allison Bauman, Dawn Thilmany McFadden and Becca B. R. Jablonski
Abstract

This study explores how participation in direct and intermediated marketing channels and key operational factors influence agricultural producers’ financial performance. Accordingly, we divide the sample of local and regional food marketers into quartiles segmented by profitability performance as an initial exploration of how strong and weak performance may vary across scale, location, and choice of direct and intermediated channels. Moreover, other financial metrics that vary across types of producers and performance-based quartiles are analyzed. This paper provides initial evidence that participation in direct and intermediated markets may allow farms of any scale of sales volume to be financially viable.

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Copyright
This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.
Corresponding author
Correspondence: Dawn Thilmany McFadden, Agricultural and Resource Economics, Colorado State University, Fort Collins, CO, USA. Phone: 970-491-7220. Email: dawn.thilmany@colostate.edu.
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The views expressed are the authors’ and do not necessarily represent the policies or views of any sponsoring agencies.

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References
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Agricultural and Resource Economics Review
  • ISSN: 1068-2805
  • EISSN: 2372-2614
  • URL: /core/journals/agricultural-and-resource-economics-review
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