Kudler’s Plan to Contracting with Local Growers.

Kudler’s Plan to Contracting with Local Growers.

  • Submitted By: niladharmen
  • Date Submitted: 12/08/2008 7:58 AM
  • Category: Business
  • Words: 1492
  • Page: 6
  • Views: 589


Contracting with local growers:
Nila Patel
University of Phoenix
Managing the Enterprise
MBA 502
Dr. Tim Glaid
October 27, 2008

Contracting with local growers:
One of the buying options for all organizations is receiving increased support from the U.S. Department of Agriculture (USDA) is to purchase food from local growers and producers.
USDA currently estimates that almost 1.9 million farms in the United States, or 94% of all farms, are small or limited-resource farms that provide an average net income of less than $25,000. The potential of these farms to generate income has been restricted in part by depressed prices for many bulk agricultural commodities and recent reductions in traditional crop subsidies (Tropp & Olowolayemo, 2000).
Local growers, who grow all food items such as eggs, meat, vegetables and fruits on their own farm and sell directly to customers, while local producers, who produce food products such as pasta, ground beef, cakes, wine, cheese and bread from locally grown or raised foods. “Local organizations can obtain fresher products packed to better meet the specification without having to pay for long-distance transportation and handling costs and local growers gain an additional, and generally stable, source of farm-based income.” (Gregoire & Strohbehn, 2002)
Kudler is not going to find this kind of fresh and inexpensive food from other than the local growers and producers. It will be very helpful to attract more customers by selling healthy and fresh food. Kudler can keep its motto: “Healthy Eating for Life.” Kudler’s any of the stores does not have any standard procedure for purchasing products. Kathy Kudler, president of the Kudler want to place purchase orders same way for all three stores. According to her and purchase manager want to obtain the best price, quality and delivery option for Kudler. Providing good quality and healthy food to customers...

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