A brief overview of markets and market form and function for those interested in commercializing non-timber or related forest resources

1. D. WILSEY
MARKETS
A LOOK AT CONCEPTS & COMPONENTS
© 2010 REGENTS OF THE UNIVERSITY OF MINNESOTA

2. D. WILSEY
MARKETS
WHAT IS A “MARKET”?
© 2010 REGENTS OF THE UNIVERSITY OF MINNESOTA

3. D. WILSEY
A MARKET IS ONE OF A VARIETY OF...
...SYSTEMS, INSTITUTIONS,
SOCIAL RELATIONS,
PROCEDURES, AND
INFRASTRUCTURES...
...THROUGH WHICH...
...GOODSAND SERVICES ARE
EXCHANGED
© 2010 REGENTS OF THE UNIVERSITY OF MINNESOTA

4. MARKETS TAKE MANY FORMS

5. D. WILSEY
SCOPE TIME
+LOCATION(S)
+SEASONALITY
+TRENDS
SCALE
FORMALITY
STRUCTURE
© 2010 REGENTS OF THE UNIVERSITY OF MINNESOTA

6. D. WILSEY
SCOPE
LOCAL
REGIONAL
NATIONAL
CAN DISTANCE
TRANSFORM “COMMON”
INTO “NOVEL”?
IS THAT GOAL NECESSARY?
FEASIBLE? INTERNATIONAL
© 2010 REGENTS OF THE UNIVERSITY OF MINNESOTA

7. D. WILSEY
SCALE
NICHE
500 BOWLS/YR
SOME CONSIDERATIONS:
COMMODITY -MARKET ENTRY
100,000,000 BF/YR -PROFIT/UNIT
-SCALING UP/DOWN
© 2010 REGENTS OF THE UNIVERSITY OF MINNESOTA

8. D. WILSEY
TIME
TREND
SEASONALITY
AGGREGATED
80
60
40
Greens
20
0
Q1 Q2 Q3 Q5 Q5 DISAGGREGATED
* VALUES ARE NOT REAL
Balsam Cedar
© 2010 REGENTS OF THE UNIVERSITY OF MINNESOTA

9. D. WILSEY
STRUCTURE
SUPPLIER : (END) CUSTOMER
INTERACTION:
DIRECT - (USUALLY) MULTIPLE,
DIRECT CUSTOMER CONTACTS (EX:
FARMER’S MARKET)
INDIRECT - (USUALLY) ONE OR FEW
CONTACTS WITH INTERMEDIARIES
(EX: BOUGH BUYER)
MIXED - THESE STRUCTURES CAN
BE COMBINED!
© 2010 REGENTS OF THE UNIVERSITY OF MINNESOTA

10. D. WILSEY
FORMALITY
FORMAL... ... ...INFORMAL
GOVERNED / LAWS “NORMS”
CONTRACTS TRUST / RELATIONS
TAXES “UNDER THE TABLE”
RECOURSE “SELLER/BUYER
BEWARE”
LEGAL
LEGAL OR ILLEGAL
© 2010 REGENTS OF THE UNIVERSITY OF MINNESOTA

11. D. WILSEY
OPERATE AT THE SPECIFIC ...
BUT UNDERSTAND THE HOLISTIC
© 2010 REGENTS OF THE UNIVERSITY OF MINNESOTA