Organic food products are excellent candidates for contract
production and marketing because they are produced using a distinct
process and are in high demand. This report summarizes survey data
on contracting in the organic sector, addressing the extent of
contracting, the rationale for using contracts, and contract design
for select commodities. The central survey data were collected from
certified organic handlers (intermediaries) in the United States
who marketed and procured organic products in 2004 and 2007.
Contracting is widespread in the organic sector, and, in 2007,
firms used contracts most frequently to secure organic products
essential to their business and to source products in short supply.
Large firms were more likely to use contracts for procurement, and
these firms contracted for a larger share of their procurement
needs. Nearly all contracts required suppliers to provide evidence
of organic certification. Firms using contracts rarely assisted
suppliers with obtaining organic certification or the transition to
organic. Most contracts include provisions regarding quality, and
quality verification was an essential component of these contracts.
Prices were determined in a variety of ways and, in some cases,
depended on delivered quality.
Is the information for this product incomplete, wrong or inappropriate?
Let us know about it.
Does this product have an incorrect or missing image?
Send us a new image.
Is this product missing categories?
Add more categories.
Review This Product
No reviews yet - be the first to create one!