Characteristics of Consumers Demanding and Their Willingness
to Pay for Certified Safer Pork
Gay Y. Miller and Laurian J. Unnevehr
Abstract: A telephone survey of 609 Illinois households was conducted in spring 1999. Most consumers surveyed have concerns about pork safety. Concerns were greatest among households with children, lower incomes, older consumers, and Blacks. Lower consumption of pork was associated with higher concern. Consumers had more confidence in USDA certification of enhanced pork safety than in industry certification. Most consumers were willing to pay some price premium for a certified safer product. Those willing to pay more were more likely women, older consumers with incomes less than $70,000, who live in an urban household, and have concern about pork safety.
Key Words: certified safer pork, consumer demand, food safety, pork
Contact Author:
Gay Y. Miller
Dept. of Veterinary Pathobiology
2001 South Lincoln Avenue
University of Illinois at Urbana-Champaign
Urbana, IL 61802
Phone: (217) 244-7421
Fax: (217) 244-3090
Quantifying Regulatory Barriers to Asian-U.S. Food Trade
Julie A. Caswell and Joanne Wang
Abstract: Data on U.S. Food and Drug Administration import detentions and alerts are used to quantify regulatory barriers experienced by Asian food products entering the United States. These data offer the only comprehensive means of assessing regulatory barriers without relying on expert opinion, although they fall short of placing a dollar value on the volume of trade affected. The data show that meeting food regulations is a significant barrier to Asian food products entering the United States, especially for products originating in developing and newly industrialized countries.
Key Words: Asia, food products, regulatory standards, trade
Contact Author:
Julie A. Caswell
Dept. of Resource Economics
215 Stockbridge Hall
University of Massachusetts at Amherst
Amherst, MA 01003
Phone: (413) 545-5735
Fax: (413) 545-5853
Success and Failure of Agricultural Futures Contracts
B. Wade Brorsen and N'Zue F. Fofana
Abstract: Most new futures contracts fail. This study estimates the effects of several factors on the success or failure of agricultural futures contracts. Commodities with futures markets and without futures markets are included. Characteristics for which no data exist, such as homogeneity, vertical integration, buyer concentration, and activeness of the cash market, are measured by the Delphi approach. An active cash market is found to be necessary for futures contract success since this variable alone perfectly predicts whether or not a commodity has a futures market.
Key Words: active cash market, buyer concentration, Delphi approach, futures markets, homogeneity, open interest, volume
Contact Author:
B. Wade Brorsen
Dept. of Ag. Economics
308 Agricultural Hall
Oklahoma State University
Stillwater, OK 74078-6026
Phone: (405) 744-6157
Fax: (405) 744-8210
Regional and Seasonal Differences in the Cotton Basis
V. Frederick Seamon, Kandice H. Kahl, and Charles E. Curtis,
Jr.
Abstract: The cotton basis is examined graphically and statistically to determine if the basis differs across U.S. production regions and within the crop year as economic theory predicts. The analysis indicates the basis differs for some, but not all, regions consistent with the theory. Results also show that the typical seasonal pattern is not apparent for regions which export most of their cotton, most likely because demand in these regions is seasonal.
Key Words: basis expectations, cotton marketing, futures markets, nonparametric statistics, theory of storage
Contact Author:
V. Frederick Seamon
Dept. of Ag. & Applied Economics
The University of Wyoming
P.O. Box 3354
Laramie, WY 82071-3354
Phone: (307) 766-2389
Fax: (307) 766-5544
Shaikh Mahfuzur Rahman, Steven C. Turner, and Ecio F.
Costa
Abstract: This study examines the feasibility of cross-hedging cottonseed meal with soybean meal futures. A simple linear regression of cottonseed meal cash prices on soybean meal futures provides a direct price movement relationship. Using the estimated hedge ratios, the net realized prices are calculated for seven different cash markets. The net realized prices are higher than cash prices in three of the four years evaluated. The empirical analyses suggest soybean meal futures can be used as a potential cross-hedging vehicle for cash cottonseed meal.
Key Words: cottonseed meal, cross-hedging, hedging ratios, soybean meal
Contact Author:
Steven C. Turner
Dept. of Ag. & Applied Economics
312 Conner Hall
The University of Georgia
Athens, GA 30602-7509
Phone: (706) 542-0852
Fax: (706) 542-0739
Hedonic Pricing, Information, and the Market for Thoroughbred Yearlings
Steven S. Vickner and Stephen I. Koch
Abstract: Building on the 1997 work of Chezum and Wimmer, and the 1998 work of Lansford, Freeman, Topliff, and Walker, we estimated a hedonic hammer price model on a random and representative sample of 212 yearlings from the 1999 Keeneland September Yearling Sale. Explanatory variables representing day of sale, age of yearling, stud fee, racing performance of sire and dam, geographic origin of yearling, and yearling health information were statistically significant. In each model, we failed to reject the null hypothesis of no adverse selection; sellers who breed and race horses did not receive a statistically significant price penalty on their yearlings sold in this auction, compared to sellers who just breed horses.
Key Words: agribusiness, equine, hedonic pricing, information, price discovery, thoroughbred yearlings
Contact Author:
Steven S. Vickner
Dept. of Ag. Economics
411 Agricultural Engineering Building
University of Kentucky
Lexington, KY 40546-0276
Phone: (859) 257-2356
Fax: (859) 323-1913
The Beef Cow Replacement Decision
Kenneth H. Mathews, Jr., and Sara D. Short
Abstract: This analysis examines effects of several common assumptions on net present values (NPVs) of beef cows. While effects on NPVs vary over a price cycle or successive price cycles, several generalities manifest themselves. A cow is not likely to recover the lost revenue from not having just one calf. Incorporating genetic improvement into the herd increases the probability of an older cow being culled. Variable net replacement/culling rates make sense in the context of cattle inventory and price cycles because of the effects cyclical series of prices have on NPV.
Key Words: asset replacement, cattle cycle, cull, net present value
Contact Author:
Kenneth H. Mathews
USDA ERS
1800 M St NW
Room N5101
Washington, DC 20036-5831
Phone: (202) 694-5183
Fax: (202) 694-5797
Establishing an Agribusiness Study-Abroad Course in Mexico: A Project in Internationalizing the Curriculum
Glenn C. W. Ames and Jack E. Houston, Jr.
Abstract: Study abroad provides students with a cross-cultural experience and a new perspective on the global marketplace. Seven students from the University of Georgia enrolled in the first agribusiness study-abroad course, entitled "International Agribusiness Marketing and Management: Focus on Mexico," at the Universidad Veracruzana in Xalapa during the Maymester 2000. Their curriculum included field trips to agribusinesses, Spanish classes and lectures on Mexican business culture, and NAFTA. As a result, students became more comfortable in cross-cultural environments and more confident in their academic and professional abilities.
Key Words: agribusiness, curriculum development, study abroad
Contact Author:
Glenn C. W. Ames
Int'l Public Serv & Outreach
1224 S. Lumpkin St.
The University of Georgia
Athens, GA 30602-1656
Phone: (706) 542-7887
Fax: (706) 542-7891
