Leopold Center for Sustainable Agriculture

Completed Competitive Grant

Case studies and benchmark transaction costs for select food products

Project ID: 2006-M02

Abstract

Producer-distributors can use the information in this set of case studies to identify commercial advantages and disadvantages that can affect the success of their enterprises.

Key Question: What can other Iowa growers and processors learn from this small but diverse set of cases and product assessments?

Findings: First, the case studies provide insights to how transaction costs (i.e., costs of resources used to deliver a grown or processed food product to the next stage of the supply chain) act as constraints in the process. Next, some of the methods used may help others overcome limitations of distance as alternatives for wider markets are considered. Finally, the analysis of published data, found in the product assessment section, provides potential benchmarks in the form of revenue and cost measurements for six specified product groups.

Lead investigator: Clyde Walter, ISU Logistics and Supply Chain Management, et al

Year of grant completion: 2007

This competitive grant project was part of the Leopold Center's Marketing Initiative.

Topics: Business management, distribution and marketing, Farmer profitability, enterprise budgets