J. Mark Welch and Conrad P. Lyford. Texas Tech University, Box 42132, Lubbock, TX 79407
The competitive landscape facing agricultural producers today requires flexible, pro-active marketing in a global context. As barriers to trade continue to fall and free trade initiatives and agreements become more prevalent, market forces become increasingly important as drivers of economic activity. One means cotton producers are considering to align their marketing strategy to this evolving economic environment is through the establishment of a high-value marketing pool (HVMP). Marketing pools structured around product traits that more closely meet differentiated customer demands for quality may offer opportunities for producers to earn increased returns. The purpose of this research is to design a model for use in evaluating the possibility of transitioning from a single product marketing pool to a high-value marketing pool. Drawing from economic and cooperative theory as well as empirical evidence, the model presented will identify the core elements necessary for implementation of a HVMP and consider some of the constraints, resources, processes, and analyses that will lead to a successful and sustainable high-value marketing pool.
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