1. Chapter 4 Forces Affecting the Distribution Systems
New

3. Economic Force Supply and demand
Basic commodities are typically acquired through a bidding procedure
Co-op farmers
Established market prices
Perceived value
Perceived quality + Perceived services / EP cost

4. Economic Force, Cont.
What is the difference between AP price and EP cost?
Monopolistic competition

5. Political Force Lobbyists –The NRA
Primary sources have the most influence
Typically used to influence produce availability, prices, and channel member behavior

6. Ethical Force Define ethical behavior What is ethical?
Codes of ethical behavior
Examples

7. Legal Force Sherman Act (1890) Meat safety legislation
Sinclair Lewis’ The Jungle
Pure Food Act (1906)
Meat Inspection Act (1907)
USDA established in 1862
Primarily focuses on meat, poultry, and eggs

8. Legal Force, Cont. Meat safety legislation
Poultry Products Inspection Act (1957)
Wholesome Meat Act (1967)
Wholesome Poultry Products Act (1968)
The Federal Food, Drug, and Cosmetic Act (1906)
FDA administers this law
They evaluate contaminate levels

9. Legal Force, Cont. Seafood safety legislation PUFI for a fee
FDA has the authority to examine seafood in interstate commerce.
Federal Trade Commission (1914)
Amended by the Wheeler-Lea Act (1938)
It deals with advertising, deceptive promotions, monopolies,and conduct in the marketplace

10. Legal Force, Cont. Clayton Act (1914)
Used to control antitrust violations
Tying agreements
Exclusive dealings
Perishable Agricultural Commodities Act (1930)
Control interstate commerce
Prohibits unfair practices in sale of produce
Added PAC (1930), EGM

11. Legal Force, Cont.
Agricultural Adjustment Act (1933) & Agricultural Marketing Agreement Act (1937)
Ensure steady flow of perishable products
Robinson-Patman Act (1936)
Known as the “small business protection act”
Promotional discounts favoritism through a quantity limits provision
Predatory pricing
Gas station example
Added AAA (1933) and AMAA (1937) EGM

12. Legal Force, Cont. Heart Act (1966-1969) Packaging pictorial aspects
Misleading descriptions and illustrations
Package label regulations

13. Other Laws Franchise law Contract law Agency law Title to goods
Consignment sales
Warranties
Patents
Rebates
Added Graphic, EGM

14. Technology Force Genetically engineered foods Preservation methods
Value added foods
Transportation
Computerization
Packaging

15. Copyright ©2008 John Wiley & Sons, Inc.