Volume 24, Number 2, Fall 2006

Trust in Scientists and Food Manufacturers: Implications for the Public Support of Biotechnology

Harvey S. James, Jr.

Abstract: An analysis of data from the U.S. Biotechnology Study, 1997 1998 reveals that few variables affect public trust in scientists, while variables representing perceived benefits, risks, trustworthiness, and competence affect trust in food manufacturers on matters of biotechnology. Both trust in scientists and trust in food manufacturers have a large and important effect on public support for biotechnology, although trust in scientists is found to be more important than trust in food manufacturers. Findings of this analysis suggest that trust in scientists is relatively generalized, while trust in food manufacturers is particularized.

Key Words: biotechnology, genetic modification, public support of biotechnology, public trust, trust

Contact Author:
Harvey S. James, Jr.
University of Missouri-Columbia
Division of Applied Social Sciences
Department of Agricultural Economics
146 Mumford Hall
Columbia, MO 65211-6200

Phone: (573) 884-9682
Fax: (573) 882-3958



Economic Feasibility of Kenaf Production in Three Tennessee Counties

Ernest F. Bazen, Roland K. Roberts, and Burton C. English

Abstract: Since the 1940s, kenaf has been viewed as a potential source of fiber, mainly for newsprint and high quality paper. Kenaf research has once again risen to the forefront due to the recent USDA tobacco buyout. Many states and farmers dependent upon tobacco revenues have been seeking alternative crops for a number of years. This study seeks to expand the current literature by examining the economic feasibility of growing kenaf within three counties in Tennessee. Nitrogen meta-yield response functions for kenaf and four traditional crops were developed for 30 soils through crop growth simulation modeling and used to compare optimal crop budgets for each soil. Results reveal that kenaf would not compete favorably with traditional crops on any soil at prices below $49/ton, while profit-maximizing farmers could supply as much as 1,385,700 tons of kenaf if the price were $55/ton.

Key Words: alternative crop, economic feasibility, enterprise budgeting, kenaf, plant growth modeling, yield response functions

Contact Author:
Ernest F. Bazen
Department of Agricultural Economics
325A Morgan Hall
2621 Morgan Circle
University of Tennessee
Knoxville, TN 37996-4518

Phone: (865) 974-7463
Fax: (865) 974-7484



Exploring Heterogeneity in Consumers' Meat Store Choices in an Emerging Market

Wuyang Hu

Abstract: Chinese consumers' choices among meat stores are examined through a model that can capture consumer heterogeneities both in their opinion of various store attributes and in how much weight they attach to each attribute. This approach not only informs store managers as to what attributes should receive focus for improving their store images, but also provides insight about which specific attribute could be improved to achieve the most effective result. Based on the individual-level parameters obtained through an empirical Bayes analysis, managers or competitors are able to strategically target their store promotions to specific individual consumers based on their demographic characteristics.

Key Words: heterogeneity, individual-level parameters, logit models, meat store

Contact Author:
Wuyang Hu
Department of Resource Economics
Mail Stop 204
University of Nevada
Reno, NV 89557-0105

Phone: (775) 784-6434
Fax: (775) 784-1342



Impacts of Soybean Imports on Indian Processors, Farmers, and Consumers

Suresh Chand Persaud and Erik Dohlman

Abstract: India is one of the world's largest importers of vegetable oils in part because of low domestic oilseed production, and tariff and nontariff barriers preventing oilseed imports. Simulation results indicate that India could lower its barriers to soybean imports without adversely affecting farmers, since imports are economically attractive to crushers even when subject to modest tariffs which sustain pre-liberalization farm and wholesale prices. Soybean processors in India achieve higher rates of capacity utilization and lower unit costs using imported oilseeds. Moreover, it is possible to partially redistribute to consumers the sizable gains processors experience by lowering the soybean oil tariff.

Key Words: India, oilseeds, processing cost, soybeans, trade liberalization

Contact Author:
Suresh C. Persaud
USDA, Economic Research Service
Room 5142-N
1800 M Street, NW
Washington, DC 20036

Phone: (202) 694-5219
Fax: (202) 694-5793



Focus on Babies: A Note on Parental Attitudes and Preferences for Organic Babyfood

Kelly B. Maguire, Nicole Owens, and Nathalie Simon

Abstract: The motivation behind purchases of organic foods is not necessarily straightforward. Some individuals may purchase organic foods for health reasons, while others may do so because of concern for the environment. The issue is even more complicated when thinking about babyfood. Because of children's developing systems, parents and other care givers could be more concerned about the effects of pesticides in conventional foods. However, this issue is relatively unexplored. This study reports results from focus groups with parents of small children regarding their attitudes and preferences, including risk perceptions, toward organic and conventional babyfood.

Key Words: children's health, organic foods, risk perceptions

Contact Author:
Nicole Owens
Office of Regulatory Policy and Management
U.S. Environmental Protection Agency
1200 Pennsylvania Ave., NW (1803A)
Mail Code 1809T
Washington, DC 20460

Phone: (202) 566-2302
Fax: (202) 566-2338



Case Studies of Strategic Alliances in U.S. Beef Production

Jeffrey Gillespie, Angel Bu, Robert Boucher, and Won-Jun Choi

Abstract: Calf marketing, commercial beef carcass, and natural/implant-free beef strategic alliances were examined via case study to determine alliance structure and whether each addressed risk, transaction costs, capital availability, and other concerns. All alliances were structured differently through vertical or horizontal coordination, and each had been established within the past 12 years. Alliance administrators reported that an advantage to cow-calf producers was higher cattle prices received relative to producers outside the alliances. The alliances reduced transaction costs and increased information flow among segments. Alliances did not specifically address risk or increased access to capital for technology adoption or expansion purposes.

Key Words: cattle industry, industry structure, risk, strategic alliances, transaction costs

Contact Author:
Jeffrey Gillespie
108 S. Columbus Street
Arlington, VA 22204



Input-Output Analysis with Public Policy Objectives: A Case Study of the Georgia Cotton Industry

Archie Flanders, Nathan B. Smith, and John C. McKissick

Abstract: Farm bill legislation directed at agricultural commodities contributes to economies of rural areas. This research quantifies the economic impacts of the Georgia cotton industry for the U.S. economy. A cotton industry model with cotton and peanut acreage is utilized with IMPLAN to estimate impacts. The Georgia cotton industry creates 4% more tax revenues for federal, state, and local governments than it receives in commodity support payments. Stochastic simulation analysis indicates that the Georgia cotton industry is not likely to remain viable without government payments.

Key Words: economic impact, FSRI, IMPLAN, industry model, multivariate empirical distribution, Simetar, social welfare analysis, stochastic simulation

Contact Author:
Archie Flanders
Center for Agribusiness & Economic Development
313-A Conner Hall
The University of Georgia
Athens, GA 30602-7509

Phone: (706) 542-0751
Fax: (706) 542-4131



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