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Abstract
Producers and marketers of agricultural commodities are often beset with a similar
set of problems that generally may be reduced to the following question: "how can we
modify our product or program in such a way as to gain a competitive edge on our
competition?" As every commodity marketer knows, there is, unfortunately, no easy
answer to this question. Obtaining higher prices and returns for agricultural products is
possible, but requires commitment, vision and attention to the ever-changing marketplace.
The current monograph contains two case studies that approach this perennial
question from different agricultural commodity industries--fresh produce and turkeys--that
are surrounded by different sets of basic supply and demand conditions. Yet, in each case,
the companies depicted have been particularly aggressive in their approach to marketing and
at least moderately successful in their quest for higher producer returns.
Both of these cases are based on real companies and current data. In the first
instance, TruFresh International (TFI) has been substituted for the company's actual name
but the circumstances documented in the case have not been altered, and in the second
example, Plainville Turkey Farm (PTF) is indeed the name of the firm. The story of each
is instructive in a different way.
Simply put, TFI, long an innovator in fresh produce marketing, is confronted with
the challenge that several of its competitors are beginning to duplicate certain of its most
successful product and market innovations. The case focuses on the strategic alternatives
that TFI may have at its disposal to address this problem, typical to so many commodity
industries.
In the second instance, PTF is faced with a related but narrower issue: the PTF
brand of fresh turkey products has been received enthusiastically in Central New York
State as a high quality brand and one for which consumers have demonstrated a willingness
to pay a premium. The dilemma for PTF is whether, and with what strategy, should it
attempt to expand its well established branded line of turkey products to new regions and
new markets?
Both of these firms are confronted with a set of marketing challenges that will
sound familiar to nearly all commodity-based companies. In discussing the events that led
to the situations faced by these two companies and the strategic options available to address
them, students, executives and industry practitioners will gain an improved understanding
of the process involved in adding value to differentiate agricultural commodities.