Matching Items (2)
Description
This thesis develops a low-investment marketing strategy that allows low-to-mid level farmers extend their commercialization reach by strategically sending containers of fresh produce items to secondary markets that present temporary arbitrage opportunities. The methodology aims at identifying time windows of opportunity in which the price differential between two markets create an arbitrage opportunity for a transaction; a transaction involves buying a fresh produce item at a base market, and then shipping and selling it at secondary market price. A decision-making tool is developed that gauges the individual arbitrage opportunities and determines the specific price differential (or threshold level) that is most beneficial to the farmer under particular market conditions. For this purpose, two approaches are developed; a pragmatic approach that uses historic price information of the products in order to find the optimal price differential that maximizes earnings, and a theoretical one, which optimizes an expected profit model of the shipments to identify this optimal threshold. This thesis also develops risk management strategies that further reduce profit variability during a particular two-market transaction. In this case, financial engineering concepts are used to determine a shipment configuration strategy that minimizes the overall variability of the profits. For this, a Markowitz model is developed to determine the weight assignation of each component for a particular shipment. Based on the results of the analysis, it is deemed possible to formulate a shipment policy that not only increases the farmer's commercialization reach, but also produces profitable operations. In general, the observed rates of return under a pragmatic and theoretical approach hovered between 0.072 and 0.616 within important two-market structures. Secondly, it is demonstrated that the level of return and risk can be manipulated by varying the strictness of the shipping policy to meet the overall objectives of the decision-maker. Finally, it was found that one can minimize the risk of a particular two-market transaction by strategically grouping the product shipments.
ContributorsFlores, Hector M (Author) / Villalobos, Rene (Thesis advisor) / Runger, George C. (Committee member) / Maltz, Arnold (Committee member) / Arizona State University (Publisher)
Created2011
Description
Research related to food deserts, areas with limited access to healthy and affordable food options, has focused primarily on issues of healthy food access, food quality and pricing, dietary outcomes, and increased risk for chronic diseases among residents. However, upstream challenges that might play a major role in the creation and perpetuation of food deserts, namely problems in the supply chain, have been less considered. In this qualitative study, researchers conducted semi-structured interviews with local produce supply chain representatives to understand their perspectives on the barriers to, and potential solutions for, supplying affordable produce to underserved areas in Phoenix, AZ. Through industry and academic experts, six representatives of the supply chain were identified and recruited to take part in one-hour interviews. Interviews were audio-recorded, transcribed, and coded into categories using a general inductive approach. Using the qualitative analysis software NVIVO to assist in data analysis, themes and subthemes emerged. Results suggested that considerable barriers exist among the representatives for supplying fresh, affordable produce in Phoenix-area food deserts, including minimum delivery requirements beyond the needs of the average small store, a desire to work with high-volume customers due to transportation and production costs, and the higher price point of produce for both store owners and consumers. Conversely, opportunities were identified that could be important in overcoming such barriers, including, tax or economic incentives that would make distribution into food deserts financially viable, infrastructural support for the safe handling and storage of fresh foods at existing retail outlets, and the development of novel distribution mechanisms for producers such as mobile markets and food hubs. Future research is needed to determine if these findings are representative of a larger, more diverse sample of Arizona produce supply chain representatives.
ContributorsLacagnina, Gina (Author) / Wharton, Christopher (Christopher Mack), 1977- (Thesis advisor) / Hughner, Renee (Committee member) / Barroso, Cristina (Committee member) / Arizona State University (Publisher)
Created2015