ABSTRACT

This chapter reviews the another contribution of the literature covering the many economic issues involved, noting differences necessary when dealing with the agricultural commodities rather than the branded products. It proposes a 'Wheel of Commodity Marketing' explain the interaction of consumer demand for product attributes and farmers. Along the way, three general propositions are presented from which testable hypotheses can be drawn for future research. These propositions will contribute to the understanding of, and debate about, agricultural niche market evolution. Agricultural market evolution depends upon the interaction of consumer demand for product attributes and farmer's ability to provide those attributes at a profit. Within this context, organic agriculture is shown to be a logical response to wealthy consumer's desire for high-quality commodities. As a result, organic niches can grow to capture the majority of sales in a market in the United States, Japan, and Europe.