Marketing Services

In thinking about marketing efficiency, a key idea is the role of marketing services. This is extremely important for any effort to construct regional agricultural systems like the work of Eden's Bowl, Inc.

I think quantifying marketing efficiency and the importance of marketing services is the missing part of may initiatives to improve opportunities for local agriculture. Many times, folks take a simplistic view of the supply chain.

The following quote does a nice job of explaining marketing services in the flow of products from farm to retail:

"As agricultural products move from the farm gate to retail outlets, a series of marketing services are often performed that add to the final retail price. In the case of fresh produce, these marketing services might include product assembly, sorting, grading, cleaning, packing, transportation, and storage. The farm-retail price spread also reflects any profits that might have been obtained by marketing agents (e.g., brokers, wholesalers, retailers) above the actual costs of providing marketing services, as well as the cost of product losses sustained during the distribution process. Consequently, analyzing the farm-retail price spread is often useful in understanding how efficiently a particular market operates." bold added

Tropp, Debra, Skully, David, Link, John, Malaga, Jaime, 2002. Mexico's changing marketing system for fresh produce: emerging markets, practices, trends, and issues. United States Department of Agriculture, Agricultural Marketing Service.