Product Differentiation and Market Segmentation

Product differentiation and market segmentation in the grains and oils industry was the subject of a January 2003 conference sponsored by Farm Foundation and USDA’s Economic Research Service. Producers, grain handlers, food manufacturers and other stakeholders discussed information needs related to the market trends of product differentiation and market segmentation.  A  conference synthesis report is available and the conference program. Papers from the conference are available below.

Session 1: Grain and Oilseed Markets Under Product Differentiation–Drivers of Change and Structural Trends
Steven T. Sonka, University of Illinois:
Forces Driving Industrialization of Agriculture: Implications for the Grain Industry in the United States

Thomas L. Sporleder, The Ohio State University, and Peter D. Goldsmith, University of Illinois at Urbana-Champaign:
Differentiation Within the Grain and Oilseeds Sectors: The Evolution and Re-engineering of Supply Chains

Session II. Product Differentiation and Marketing Systems–Current Trends and Developments
Karen Bender, University of Illinois-Urbana Champaign:
Product Differentiation and Identity Preservation: Implications for Market Developments in U.S. Corn and Soybeans

Peter Phillips, University of Saskatchewan:
Identity-Preservation in Marketing Systems in Canada: Developments in Wheat and Canola Sectors

Heidi Reichert, USDA, and Kimberly Vachal, North Dakota State University:
Identity Preserved Grain–Logistical Overview

Session III. Price and Market Implications of Differentiated Grain and Oil Crops: Analytical Approaches
Marion Desquilbet, INRA, France:
Welfare Effects of non-GMO Identity Preservation: The Case of Potential Co-Existence of GM and non-GM Rapeseed in the EU

Aziz Elbehri, USDA:
Product Differentiation and Price Behavior in Corn Markets with Identify Preserved Types

Nicholas Kalaitzandonakes, University of Missouri-Columbia:
The Economics of Thresholds in IP Systems: An Example From the U.S. Seed Industry

Session IV. Economics of Identity Preservation: Assessing Costs and Efficiency in the Grain Industry
William Wilson, North Dakota State University
The Logistical Costs of Marketing Identity-Preserved GM Wheat

Charles Hurburgh, Iowa State University:
Segregation Costs and Efficiencies Within the Grain-Handling System

Lynn Clarkson, Clarkson Grain Company, Inc.
Costs and Efficiency of IP Production and Handling: A Perspective from the Field

Session V. Product Differentiation and Market Facilitation: Private and Public Initiatives
David Shipman, USDA, Grain Inspection, Packers and Stockyards Administration
Public Role in Grain and Oilseed Marketing Facilitation—USDA Perspective

Reg Clause, Iowa State University
Supply Chains, Quality Assurance and Traceability: Using ISO Systems in Agriculture

John Fagan, Genetic ID NA, Inc.
Cert ID–A Successful Example of an Independent, Third-Party, Private Certification System

Frank Beurskens, AgriBiz and Associates Inc.
Market Facilitation of Grain Marketing: The End-User’s Perspective

Session VI. Producing Differentiated Crops: Costs, Incentives and Organizational Implications
Bob Stewart, Ag Education & Consulting
Recent Trends in High-Value Corn Production in the Untied States: Evaluation of the Economic Determinants Behind Growers Decisions

Sharon J, Bard, Robert K. Stewart, Lowell D. Hill, all of Ag Education and Consulting LLC; and Linwood Hoffman, Robert Dismukes and William Chambers, all of USDA
Risk and Risk Management in the Production and Marketing of Value-Enhanced Grains

Joan Fulton, Purdue University; James Pritchett, Colorado State University; and Ryan Pederson, Purdue University
Contract Production and Market Coordination for Specialty Crops: The Case of Indiana

Session VII. Production and Marketing of Differentiated Crops: A View From the Field
Bill Horan, Iowa corn grower and board member, National Corn Growers Association
A Producer’s Experience with Pharmaceutical IP Plants

Bill Grande, Critereon/
Servicing IP Production and Marketing: A Third-Party Role

Ron Olson, General Mills Grain Division
Procuring IP Grains and Ingredients: A Food Manufacturing Experience


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