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A Two-Pricing System for Exporting Frozen Concentrated Orange Juice

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  • Ward, Ronald W.

Abstract

The Florida citrus industry is in the unique position of being both importer and exporter of frozen concentrated orange juice. On one hand, exports provide the industry with an additional outlet for concentrate. On the other, imports being brought into the U.S. market creates considerable controversy as to whether this imported juice is economically desirable for the industry. Two basic issues have evolved from these international trading activities. First, Florida exports concentrate on both Canadian and European markets. The former differs little from the domestic market. In contrast, the European market is expected to differ substantially from the U.S. market. Florida faces a number of competing suppliers in Europe. Often, the price of foreign concentrate exported to Europe is priced lower than Florida's export price. Recognizing that competition exists in the European market, how then should Florida price its product relative to the world price? Similarly, should the Florida export price be discounted to the domestic?

Suggested Citation

  • Ward, Ronald W., 1976. "A Two-Pricing System for Exporting Frozen Concentrated Orange Juice," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 8(1), pages 131-135, July.
    • Handle: RePEc:cup:jagaec:v:8:y:1976:i:01:p:131-135_01
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