Mass Merchandising and the Agricultural Producer

Abstract

This article presents a brief survey of the structure of today's food market. The authors indicate where change is taking place, and point to some adjustments that may be warranted. The dynamic merchandising techniques which characterize the business of food distribution, particularly at the retail level, are having repercussions throughout the marketing structure. The income of the agricultural producer is becoming continually more sensitive to the profit determinants of the retailer. Strengthened lines of communication from top to bottom are a requisite for profit maximization at all levels. The specifications of retail demand provide strong impetus for closer coordination between producers and marketing firms. Established marketing institutions in direct contact with the producer are obliged to make a critical appraisal of their organization and services in view of the changing nature of retailer demand.