Factors that impact farmers’ engagement in local food brand development

Abstract

Purpose The purpose of this paper is to explore farmers’ intentions to engage in food brand development schemes and identify the factors that impact this. Design/methodology/approach By assuming the utility maximization behavior of farmers, based on data collected from 539 fruit and vegetable producers, this study estimates an intention to participate and a willingness to pay model. Findings Three groups of factors determine the utility the farmers derive and subsequently their engagement in brand development. Farm business characteristics include farmers’ age, the attainment of quality certification and cultivated area, while psychological factors include farmers’ attitudes toward local reflections of the brand, perceptions regarding the need for farm business external support and consumers’ interest, as well as farmers’ commitment to quality requirements. Farmers’ strategies related to the share of products sold by cooperatives and to individually use the brand also determine their engagement in a brand development scheme. Research limitations/implications Future research should distinguish producers according to the marketing channel they choose and their industry, and explore the intentions of intermediate marketers. Practical implications Marketing cooperatives should undertake initiatives to develop local brands effectively, taking into consideration the factors that impact farmers’ engagement, while food marketing firms should properly adapt their purchasing and promotion strategies. Public authorities should formulate a policy mix that enhances farmers’ knowledge related to marketing issues and encourages farmers to strengthen their positions in the marketplace. Originality/value The research reveals a strategic proactive behavior of farmers favoring the development of local brands, and provides insights into the factors that impact farmers’ adoption decisions.