A Marketing Approach to Commodity Futures Exchanges : A Case Study of the Dutch Hog Industry

M.T.G. Meulenberg, J.M.E. Pennings

Research output: Contribution to journalArticleAcademicpeer-review

7 Citations (Scopus)

Abstract

This paper proposes a marketing strategic approach to commodity futures exchanges to optimise the (hedging) services offered. First, the environment of commodity futures exchanges is examined. Second, the threats and opportunities of commodity futures exchanges are analysed. Our analysis demonstrates that market orientation is an important element in the market strategies of commodity futures exchanges. Our market strategic framework is applied to the Dutch hog futures market. It is concluded that market penetration is an appropriate strategy. Consequently, to identify the variables that distinguish between farmers who initiate futures positions and farmers who do not, we conducted a discriminant analysis on data gathered from 418 Dutch hog farmers. The discriminant analysis shows that latent variables, such as farmers' perceived performance, farmers' reference price and farmers' market orientation, are important discriminating variables. Furthermore, farmers' cash market behaviour (in terms of the frequency of selling in the spot market) is an important discriminating variable as well. The usefulness of these results as input for a penetration policy is demonstrated.
Original languageEnglish
Pages (from-to)51-64
JournalJournal of Agricultural Economics
Volume53
Issue number1
DOIs
Publication statusPublished - 2002

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commodity futures
Marketing
marketing
Industry
farmers
case studies
markets
industry
swine
market orientation
discriminant analysis
Discriminant Analysis
farmers' markets
Farmers
Commodity futures

Cite this

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A Marketing Approach to Commodity Futures Exchanges : A Case Study of the Dutch Hog Industry. / Meulenberg, M.T.G.; Pennings, J.M.E.

In: Journal of Agricultural Economics, Vol. 53, No. 1, 2002, p. 51-64.

Research output: Contribution to journalArticleAcademicpeer-review

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AU - Pennings, J.M.E.

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