Proceedings

PR – Proposed Procurement Marketing Framework For Potato Processing Companies

The potato processing industry production has increased over the last few years with as much as 143% within 10 years; together with this there is also an increased growth in the import of frozen fries. This puts direct pressure on the processing companies to procure good quality potatoes at reasonable prices, in order to remain competitive. The aim of this paper is to develop a procurement marketing framework that will assist processing companies with the establishment of longer term contracts and relationships with producers as suppliers. This framework is constructed by evaluating the needs of producers, transaction costs, the profit margins, price risks and incentives such as Decision Support Models.

Keywords: potatoes, marketing, processing companies, South Africa

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Author(s): Strydom, D.B., vanZyl, H., Willemse, B.J.

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Organizations(s): Business School, University of the Free State, Department of Agricultural Economics, University of the Free State