5 pages
Mr.Q
att00005.zipcontent/FS14/ABM/100/FS14-ABM-100-001-97DGDT-EL-02-036/3_Intro to Food Marketing.Value-Added.F14.pptx
Introduction to Food Marketing & Value-Added
So Far . . .
Know what the Agri-Food System is
Know who the Players are
Now . . .
What is Food Marketing?
What does Value-Added mean and how is it created?
Key Questions . . .
Complex Agri-Food System
Farm Service/Ag.Input Supplier
U.S. CONSUMER
Producers
Assemblers
Initial Food Processors
Food Manufacturers
Import/ Export Markets
Food Service Retailers
Large Retail Food Stores
Institutional Wholesalers
Grocery Wholesalers
Small Retail Food Stores
Specialty Retailers
What is Marketing?
Means different things to different people
“The performance of all business activities involved in the flow of food products and services from the initial agricultural production until they are in the hands of the consumer”
“A Value-Adding Process”
What is Marketing?
All the activities that have to happen to get food from the farm to the consumer!
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Each level in the agri-food system is an economic stage
Each economic stage involves a value-adding process that moves product closer to final consumption
Moving Product Through the System
Growing wheat
Transporting grain to the local elevator
Milling wheat into flour
Making Wheat Thins at the manufacturing plant
Selling Wheat Thins to the consumer
Examples of Players and Stages
Player Activity
Growing Wheat
Transporting grain to the local elevator
Processing/milling wheat into flour
Making Wheat Thins at the manufacturing plant
Selling Wheat Thins to the consumer
How is Value-Added at Each Stage?
Economic Stage Value-Added
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Value-added refers to the difference between the cost of goods purchased and the price for which the firm sells those “enhanced” goods
Players in the agri-food system create value by changing an input’s:
TIME
PLACE
FORM
POSSESSION
Primary Functions of Marketing - What Adds Value?
Time – value created by storage activity; allows production and consumption to occur at different points in time
What types of agri-food firms are involved in “storage”?
Time Value
Place – value created transporting the commodity or product to a location desired by the next player
What types of agri-food firms are involved in “transportation”?
Place Value
Form – value created by changing the physical form of the product into something the next player wants
What types of agri-food firms are involved in “physical transformation”?
Form Value
Possession – value created by facilitating exchange between buyers and sellers
What types of agri-food firms or what types of activities are involved in “facilitating exchange”?
Possession Value
The Agri-Food System describes the players involved in getting commodities and food product from farm to consumer.
Food Marketing refers to the actions taken by these players to move products from farm to consumer.
At each economic stage, value is added by changing the product’s form, time, place, and/or possession
Summing it Up . . .
Table of Contents.html
| FS14-ABM-100-001 - Decision Making in Agri-Food - Food Marketing and Value-Added - Thursday, September 11, 2014
1. 3_Intro to Food Marketing.Value-Added.F14 |
