Market Channel Assessments
FOR COLORADO SPECIALTY CROP PRODUCERS
Previous research indicates that the largest variation in market channel costs are associated with labor and distribution. Accordingly, this study focuses on understanding the relationship between sales and labor utilization by market channel and activity (e.g. harvest, process and pack, travel and delivery, and sales and bookkeeping).
This study used market channel assessments to populate individualized reports to help specialty crop producers analyze financial returns to their individual market outlets and make recommendations to improve market channel selection and performance.
Farm-level market channel data from 2016 and 2017 were then aggregated to develop state-level benchmarks that:
1. Determine predictors of success in marketing through different outlets; and
2. Provide market performance metrics that help guide existing and beginning specialty crop farmers by identifying market channels that maximize farm-level profitability.
What is a Market Channel?
There are two categories of market channels:
1) Direct (e.g. farmers’ markets, Community Supported Agriculture (CSA), and farm stands); and
2) Intermediated (e.g. sales to larger buyers such as restaurants, grocery stores, and distributors).
Market Channel Assessments provide customized information to Colorado specialty crop producers about the profitability and efficiency of their market channels.