Abstract: The world is producing greater opportunity for more people than ever before in the history of mankind. The global agri-food system is dynamic, not static. In order to understand the future trends and potentials for utilizing and improving our agri-food system, it is critical to focus on forces that will improve both productivity and policy to meet the demands of the ever-changing global market. This paper identifies five major trends that will impact the global economy and create structural change in commodity markets.
Key Words: biotechnology, energy, environment, farm policy, food safety, information technology, infrastructure gaps, trade logistics
Contact Author:
Carole L. Brookins
19 East 80 Street, #11C
New York, NY 10021
Phone: (212) 988-2683
Fax: (212) 988-2684
Abstract: Import demand equations are estimated in order to identify the own-, cross-price, and volume elasticities that can be used to determine the best marketing strategy to increase U.S. orange juice gallons in the Canadian import market. This study uses the firm's version of production differential, AIDS, CBS, and NBR models. An expansion of total Canadian orange juice import gallons using advertising favors the U.S. much more than it does the other three origins investigated—Brazil, Mexico, and ROW. A 1% increase in imported gallons of orange juice due to advertising will increase U.S. imports by 1.20% and Brazil's gallons by 0.60%.
Key Words: AIDS model, CBS model, import demand, international trade, NBR model
Contact Author:
Richard L. Kilmer
Institute of Food & Agricultural Sciences
Department of Food & Resource Economics
P.O. Box 110240
University of Florida
Gainesville, FL 32611-0240
Phone: (352) 392-1881, ext. 304
Fax: (352) 392-9898
Abstract: With the current methyl bromide (MeBr) system for producing Georgia's peppers being phased out, alternative fumigant and herbicide systems for producers are analyzed. Using stochastic dominance analyses, two alternatives exceeding MeBr's yield and financial efficiency were identified. A programming model, incorporating simulation-optimization techniques, generated optimal production and financial plans. Results indicate potential economic viability under alternative systems vis-à-vis the traditional MeBr production system. The Telone II and Chloropicrin combination with Metham potassium may offer a viable substitute for MeBr.
Key Words: fumigant, herbicide, methyl bromide, multi-period programming, optimization, simulation, stochastic dominance
Contact Author:
Cesar L. Escalante
Department of Agricultural & Applied Economics
312-A Conner Hall
University of Georgia
Athens, GA 30602-7509
Phone: (706) 542-0740
Fax: (706) 542-4131
Abstract: This paper addresses the issue of competition in the U.S. catfish industry. To this end, a conjectural variation oligopolistic model was developed. The model was estimated econometrically using the Generalized Method of Moments (GMM) procedure. Chi-square analysis implied that catfish processors do not exert market power over farmers or over consumers. The conjectural elasticity was estimated to be 0.073, the oligopoly power index 0.28, and the oligopsony power index 0.68, and none of these values were statistically significant. The results support competitive behavior of the catfish processing sector.
Key Words: competition, conjectural variation model, U.S. catfish industry
Contact Author:
David Bouras
Aquaculture/Fisheries Center
University of Arkansas at Pine Bluff
Mail Stop 4912
1200 N. University Drive
Pine Bluff, AR 71601
Phone: (870) 575-8523
Fax: (870) 575-4637
Abstract: Cow/calf producers operating in the Dakotas were surveyed on their price discovery strategies, marketing channel preferences, and their perceptions of how regime change in the public price reporting system for fed cattle affected the beef industry in general and the cow/calf industry in particular. Survey results indicate cow/calf producers consider local institutions (auction barns, etc.) to be more reliable for price discovery than regional or national institutions (futures market, USDA public price reports, satellite auctions, etc.). The auction barn marketing channel is the preferred channel for marketing cattle and is considered the most reliable source of market information by producers. Dakota cow/calf producers perceive livestock mandatory price reporting as benefiting the beef industry in general, but consider public price reports to be less reliable than local sources of market information.
Key Words: beef supply chain, cow-calf marketing, marketing channel, price discovery, public price reporting
Contact Author:
Scott W. Fausti
Department of Economics
Scobey Hall, Box 504
South Dakota State University
Brookings, SD 57006-0895
Phone: (605) 688-4868
Fax: (605) 688-6386
Abstract: The impact of Idaho's wine and grape industry was assessed as an agribusiness and as a tourist industry. Idaho's grape and wine industry is in its infancy, with wine sales of $15 million from 15 wineries and growers cultivating about 1,000 acres, primarily in southwestern Idaho's Canyon County. Synthesized output multipliers for wine tourism were virtually identical to the agribusiness output multipliers (1.86 and 2.10 for Canyon County and the state of Idaho, respectively). The wine and grape industry's agribusiness impact is $15 million in sales and 120 jobs in Idaho, and $23 million and 140 jobs for Canyon County. In contrast, tourism expenditures stimulate other businesses in addition to the agribusiness linkages of grape and wine production. Thus, only about three-fourths of the current wine production would be required to be sold to out-of-region tourists to equal the impact of the wine and grape industry as an agribusiness industry.
Key Words: Idaho, impact analysis, input/output models, tourism, wine, wine agribusiness
Contact Author:
John C. Foltz
College of Agricultural & Life Sciences
University of Idaho
P.O. Box 442334
Moscow, ID 83844-2334
Phone: (208) 885-6446
Fax: (208) 885-6654
Abstract: Personal interviews were conducted with 52 Louisiana cow-calf producers to determine their preferences for a livestock revenue insurance (LRI) product. Conjoint analysis was utilized to determine the importance of selected attributes of insurance policies for these producers. Two-limit tobit models were estimated. Producers were segmented using cluster analysis based upon preferences for LRI product attributes. A multinomial logit model was used to determine differences between characteristics of producers in each cluster. Producers generally preferred higher-premium, zero-deductible products; 180-day policy length; the state price series; and an in-person method of marketing. Cluster analysis yielded three groups of preferences.
Key Words: cluster analysis, conjoint analysis, livestock revenue insurance
Contact Author:
Deacue Fields
Department of Agricultural Economics & Rural Sociology
100B Comer Hall
Auburn University
Auburn, AL 36849
Phone: (334) 844-4931
Fax: (334) 844-3519
Abstract: Agricultural supply chains, especially those from producer to first handler, are relatively mature institutions. While agricultural economists often observe the evolution of marketing structures in developing nations, it is a rare opportunity to research a developing market within North America. The emerging bioenergy industry—which relies on non-food crops such as straw—provides the potential to research and potentially impact the development of new supply chains. Here, we briefly review the literature related to biomass supply chains, pose a transaction cost approach to studying their development, and then discuss the procurement strategies of an industry leader: the Iogen Corporation.
Key Words: biomass supply chains, organization, transaction cost
Contact Author:
Dwight R. Sanders
Department of Agribusiness Economics
Mail Code 4410
Southern Illinois University
Carbondale, IL 62901-4410
Phone: (618) 453-1711
Fax: (618) 453-1708