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Abstract
The focus of farm management, as a discipline, has reflected historically the assumption
that farms are embedded in near-perfectly competitive market structures. The common
validity of this assumption is plain. As open systems, farms have asymmetric
relationships with their environment: they are significantly more influenced by it than
influencing it. However, farmers seem often not to appreciate the implications of this for
their management options. Nor, arguably, is the farm management discipline yet well
equipped to analyse initiatives that farmers might contemplate to enhance their control
over market outcomes, specifically, as a means of exerting greater control over business
performance.
In this paper a framework for the analysis of the prospects for product differentiation of
farm output is presented in an attempt to fill this lacuna.
Introduction
As an academic discipline, historically farm management (FM) has been focused on
management decision making (Charry and Parton 2002). The domain of physical
agricultural production activities may have been taught within farm management
qualifications, but the discipline has persistently involved analysis for decisions. Within it
farms are characterised as purposeful, open, complex systems having to cope with
substantial stochasticity (Dillon 1992). Economics has been the discipline used to most
effect to analyse farm management decisions (Malcolm 2004).