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close this bookExporting High-Value Food Commodities: Success Stories from Developing Countries (WB, 1993, 119 p.)
View the document(introduction...)
View the documentForeword
View the documentAcknowledgments
View the documentExecutive summary
View the documentI. Introduction
close this folderII. Economic and institutional issues in the marketing of high-value foods
View the documentMarketing high-value food products
View the documentFood commodity systems: Organization. coordination, and performance
close this folderCommodity system competitiveness
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View the documentDeterminants of competitiveness
close this folderGeneric barriers to entry and coordination in food commodity systems
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View the documentFood product technical characteristics
View the documentFood commodity production characteristics
View the documentProduction support by marketing enterprises
View the documentProcessing and distribution functions
close this folderTechnologies, institutions. and other solutions to generic food marketing problems
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View the documentTechnological measures
View the documentLaws, rules, and standards
View the documentSpot marketing trading
View the documentReputations, brand names and advertising
View the documentPersonalized trading networks
View the documentBrokerage
View the documentContract coordination
View the documentCooperatives/associations/voluntary chains
View the documentVertical integration
View the documentGovernment intervention
close this folderIII. Synthesis high-value food commodity system ''Success stories''
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close this folderSelected dimensions of commodity systems performance
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View the documentCost advantages and product/service differentiation
View the documentAdditional performance indicators
View the documentInternational market environment
View the documentMacroeconomic conditions. human capital. and infrastructure
View the documentGovernment support and interventions
close this folderCommodity system organization coordination
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View the documentCompetitive structure
View the documentInstitutional arrangements linking producers with processors/exporters
View the documentInstitutional arrangements linking exporters with foreign markets
View the documentForeign capital and technology in the case study subsectors
View the documentIV. Summary and lessons
View the documentBibliography
close this folderAppendix The development and performance of case study commodity systems
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View the documentMexico fresh tomatoes
View the documentKenya 'off-season' and specialty fresh vegetables
View the documentIsrael fresh citrus fruit
View the documentBrazil frozen concentrated orange juice
View the documentChile temperate fruits and processed tomato products
View the documentProcessed tomato products
View the documentArgentina beef
View the documentThailand poultry
View the documentThailand tuna
View the documentChile fisheries
View the documentCultured shrimp production and trade in China and Thailand
View the documentSoybean development in Brazil and Argentina
View the documentDemand-driven agricultural diversification in Taiwan (China)
close this folderDistributors of World Bank Publications
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View the documentRecent world bank discussion papers

Food product technical characteristics

2.23 Compared with most other products, food products and raw materials are more bulky and perishable. Bulky commodities generate physical handling and transport problems related to the development and utilization of infrastructure capacities and to potentially high unit logistical costs. For very bulky goods, it may be necessary to establish processing facilities and the attendant power and water supply in close proximity to farm production areas. Perishability limits the marketable life as a fresh commodity and the period of time over which it can be used as raw materials for processing. Commodity perishability greatly limits the marketing flexibility of producers, enhances their market risks, and potentially places them in an unfavorable bargaining position vis-a-vis buyers who have alternative supply sources. Commodity perishability enhances risk of product loss or value decline during transport and storage, may necessitate investment in highly specialized and 'lumpy' transport and storage facilities and equipment, limits the role of storage in balancing supply and demand over time, and raises the risk of contamination in food processing. In addition to these losses or special costs, rapid perishability raises transaction costs since it requires that the raw materials or commodities be repeatedly screened or graded for quality at each level in the commodity system.

2.24 While agricultural commodities are frequently regarded as being relatively homogeneous, food commodities and raw materials do exhibit considerable variability in their quality from unit to unit and from one supply period to another. Food commodities and raw materials tend to have multiple quality attributes, some of which are difficult to measure (or observe), and most of which are valued and weighted differently by specific groups of users and consumers. These features sometimes limit the scope for informative grading, create potential information asymmetries related to quality, and reduce the likelihood that market prices will signal complete information about the quality of these goods.