An analytical framework and ranking system is developed to summarize the primary factors affecting marketing channel performance and to prioritize those channels with the greatest opportunity for success. An application of the model is conducted using case-study evidence from four small-scale diversified vegetable crop producers in Central New York. The relative costs and benefits of alternative wholesale and direct marketing channels are investigated, including how the factors of risk, owner and paid labor, profits, lifestyle preferences and sales volume interact to impact optimal market channel selection. Given the highly perishable nature of the crops grown, along with the risks and potential sales volume of particular channels, a combination of different marketing channels is needed to maximize overall firm performance.
Given the relatively small industry scale of cow-calf operations in New York to other regions of the country, little is known about differences in determinant values for feeder cattle. Using auction prices and quality characteristics over 7 years, differences in market, lot, and quality parameters suggest opportunities for improved marketing performance. A delta profit model is constructed to inform timing of marketing decisions for producers. The results indicate a relatively high potential for producers to increase farm returns by delaying sales of lighter-weight feeder cattle from the fall to spring auction months, given sufficient rates of gain and reasonable overwintering costs.
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