#Transparency is the new #Green. Okay, beyond our hemp seed we felt it was so important to recognize the farmer first, fulfilling the promise of food transparency in support of our consumer. Think the farm-to-table movement. People want real food which means real farms with real farmers.
#Transparency let’s get to the promise first, what is it that we need to recognize? The direct relations between farmers and consumers, often described in literature as efficient in the development of consumer confidence in terms of quality, can indeed translate into higher income than anonymous exchange or sales under contractual arrangements with retailing companies. Some cooperatives received support under such programs to get access to retailing points or to enter into contracts with distribution companies, canteens, schools, shops or supermarkets, and to have their vegetable output labelled as safe; including indication of the place of production. All of these outlets charge premium prices for ―safe vegetables, although these are highly inconsistent. Shops and market stalls may be run by intermediate traders or by farmer groups themselves. Supermarkets commonly sign contracts with safe vegetable groups or buy from distribution companies that contract out their supply to farmer groups. These contracts specify the frequency of delivery, quality requirements including visual criteria and the provision of certification.
What kind of vertical coordination is the most beneficial for farmers involved in quality efforts?
Changes in consumer demand and in the retailing sector are creating new market opportunities, but are also thrusting new challenges on small-scale farmers, as the new markets have special requirements in terms of quality and delivery deadlines. Contractual arrangements between farmers or farmer groups and buyers, and more generally vertical integration in the chain, have been documented as efficient ways to overcome these challenges and increase farmer incomes. Vertical integration involves the participation of one firm in two adjacent stages in the vertical marketing channel from producer to consumer, in terms of decisions and/or ownership
The results show the profitability of farmer direct sales compared to selling to collectors in spot markets, and even to having contracts with supermarkets. Contracts with supermarkets show higher profitability than spot markets, but its effect is much smaller than direct sales. Direct sales provide economic benefits to farmers in the form of higher income, because they enable farmers to better promote their efforts in the realm of vegetable quality, especially safety. Food safety generates a number of information deficiencies and opportunism risks, which are reduced by cutting out intermediary stages between farmers and consumers.
As a marketing arm and social media outreach for all-things-hemp, we felt it was crucial to recognize and associate our efforts to the Canadian Hemp Farmer. It was a decision we made from the beginning at the Hemp Out Agency that we are vertically-integrated with our Canadian hemp farmer, and producers of the finest hemp grain for the commercial, retail and direct sales channels that we support, care about with our alliance to North American Hemp & Grain Co. — Teri Wallace
“The greatest form of maturity is at harvest time. This is when we must learn how to reap without complaint if the amounts are small and how to reap without apology if the amounts are big.” — Jim Rohn
