|
All handlers |
Manufacturer/
processor |
All
other functions |
| Type of contract |
Percent of handlers
3/ |
| Written |
73% |
73% |
70% |
| Verbal |
27% |
27% |
30% |
| Compensation term
used most often |
|
|
|
| Flat price |
40% |
40% |
36% |
| Markup over conventional
price |
9% |
8% |
6% |
| Negotiated price at time of
transaction |
32% |
34% |
35% |
| Price based on performance
relative to other suppliers |
2% |
2% |
2% |
| Price determination not in
contract |
4% |
4% |
3% |
| Other method |
10% |
9% |
14% |
| Price mechanisms in standard
contract |
|
|
|
| Quantity discount |
26% |
26% |
31% |
| Quality premium |
27% |
28% |
32% |
| Penalties for lower than
contracted quality |
29% |
28% |
31% |
| Prices depend on supplier's
past performance |
11% |
11% |
10% |
| Method of quality measurement
for pricing purposes |
|
|
|
| Observing samples |
56% |
57% |
57% |
| Testing samples |
62% |
66% |
54% |
| Third-party
certification |
26% |
28% |
23% |
| USDA grading
standards |
25% |
23% |
29% |
| Downstream price |
8% |
5% |
15% |
| Price does not depend on
quality measures |
6% |
5% |
6% |
| When suppliers are
paid |
|
|
|
| Upon delivery of product,
organic certificate |
61% |
65% |
55% |
| At harvest |
5% |
4% |
4% |
| After downstream
sale |
10% |
7% |
17% |
| Other |
24% |
24% |
25% |
| Contract
length |
|
|
|
| Seasonal |
33% |
31% |
38% |
| Yearly |
40% |
40% |
35% |
| Multi-year |
9% |
10% |
10% |
| Other |
7% |
6% |
8% |
| Time not specified |
12% |
13% |
10% |
| Standard contract
clauses |
|
|
|
| Automatic renewal |
13% |
13% |
13% |
| Verification of organic
certification |
84% |
87% |
77% |
| Minimum quality
standards |
78% |
82% |
78% |
| Number of acres you will buy
production of |
25% |
25% |
25% |
| Best management
practices |
23% |
25% |
21% |
| Reject deliveries that don't
meet specs |
67% |
69% |
62% |
| Other actions if contract
specs not met |
42% |
42% |
44% |
| Place of delivery |
67% |
69% |
63% |
| Date of delivery |
58% |
60% |
60% |
| Exclusive supply |
14% |
11% |
20% |
| Other |
42% |
42% |
44% |
