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Marketing Order Suspensions and Fresh Lemon Retail-FOB Margins

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  • Richards, Timothy J.
  • Kagan, Albert
  • Mischen, Pamela
  • Adu-Asamoah, Richard

Abstract

In August 1994, the Secretary of Agriculture announced the termination of the marketing order and the associated flow-to-market, or prorate, controls for fresh California and Arizona (CA/AZ) lemons. Lemon growers and handlers have expressed concern over the impact of this decision on retail-FOB margins. This study presents an econometric model of fresh lemon marketing margins that tests for the presence of buyer and seller market power during previous periods of marketing order suspension. The results show that buyer and, to a lesser extent, seller market power cause retail-FOB margins to widen during periods of prorate suspension.

Suggested Citation

  • Richards, Timothy J. & Kagan, Albert & Mischen, Pamela & Adu-Asamoah, Richard, 1996. "Marketing Order Suspensions and Fresh Lemon Retail-FOB Margins," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 28(2), pages 263-277, December.
    • Handle: RePEc:cup:jagaec:v:28:y:1996:i:02:p:263-277_00
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    Cited by:

    1. Mojtaba ABASSIAN & Farhad SHIRANI BIDABADI & Hussein EBRAHIMZADEH, 2010. "Efficiency of date marketing system in Sistan & Bluchestan of Iran; a marketing margin approach," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(1), pages 43-50.
    2. Franz Sinabell, 2005. "Marktspannen und Erzeugeranteil an den Ausgaben für Nahrungsmittel," WIFO Studies, WIFO, number 25398.
    3. Lee L. Schulz & John M. Crespi, 2012. "Presence of Check‐Off Programs and Industry Concentration in the Food Manufacturing Sector," Agribusiness, John Wiley & Sons, Ltd., vol. 28(2), pages 148-156, March.

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