Monday, January 24, 2011

Why I believe Marketing Efficiency is so Important for Fruits and Vegetables


In an era where food inflation will likely accelerate, it is absolutely critical to improve the marketing efficiency for items like fruits and vegetables. Otherwise, consumers will pay more and folks in the middle of the supply chain will take excessive profits.

This issue is not taken seriously by many.

I believe that marketing efficiency for the fruit and vegetable supply chain has been an issue for decades in America. It does not get enough research attention.

At a time when Americans need to eat more fruits and vegetables, it is important that prices are efficient and supply ample. As well, growers are perhaps not receiving the best prices. Finally, the loss in fruit and vegetable supply chains is excessive (at least 30%) and there appears to be little improvement over the years.

This is a worldwide problem that can be addressed through technology to the benefit of many. The problem will become worse as energy prices increase. A bit of an uptick in the global economy will trigger petroleum price inflation. Making the problem even more challenging, countries like China are extremely inefficient users of energy.

Though relatively modest investments in various technologies, I believe that marketing efficiency for fruits and vegetables can be increased a great deal and that new types of jobs can be created in rural areas.

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