Document Type
Report
Publication Date
1-1-2009
Keywords
Arkansas, alternative crop, profitability, stability, family farm, small-size farm, medium-size farm
Abstract
Co-packing, also known as contract packaging, is when a company contracts with another company to manufacture and package foods that the original company will sell. Products on the market that have been co-packed range from nationally known brands to those sold under private labels. The use of co-packers has become extremely popular with entrepreneurs who have a product idea but lack the $100,000 or more needed to set up a manufacturing facility to produce the product. In addition, many entrepreneurs starting a foods business find that, in today’s market conditions, greater profits are achieved through sales and marketing innovations than by what is done in manufacturing. So, if a company has limited resources, they may get more profit using these resources to develop efficient marketing procedures rather than spending them on setting up manufacturing operations.
Citation
Brady, P. L., Seideman, S., & Morris, J. R. (2009). Choosing and Using a Co-Packer. Research Reports and Research Bulletins. Retrieved from https://scholarworks.uark.edu/aaesrb/14
Series Number
985
Included in
Entrepreneurial and Small Business Operations Commons, Operations and Supply Chain Management Commons