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Abstract

We present the results of a survey of the organic produce supply chain in the U.S., focusing on supply chain dynamics and firm behavior with a view to changing market forces. The survey suggests firms are projecting increased activity with organic products, but they are changing the way they are sourcing from their suppliers. Shippers and wholesalers are using fewer, larger suppliers to provide a greater proportion of their produce. There is an increasing prevalence of contracting for both organic and conventional produce. The expanding presence of the mass merchandisers in organic produce is expected to actually stimulate demand, but it also leads to an increased competition for suppliers. There is significant effort to coordinate business functions between shippers and suppliers.

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