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Supply Response and Marketing Strategies for Deciduous Crops

Author

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  • John L. Baritelle
  • David W. Price

Abstract

Recent surveys show large increases in Washington apple tree plantings. When these plantings come into production, prices received by growers are expected to be below production costs. A simulation model combining supply, demand, and random weather variables was used to compare future returns and production variables of present fresh-processing allocation policies with alternative policies. The discriminating monopolist policies produced higher discounted revenues, more stable prices, and greater production and tree numbers during the 1972–1981 period than present policies. Thus, the monopolist short-run increase in returns over the present policy was prevalent after accounting for supply response.

Suggested Citation

  • John L. Baritelle & David W. Price, 1974. "Supply Response and Marketing Strategies for Deciduous Crops," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(2), pages 245-253.
    • Handle: RePEc:oup:ajagec:v:56:y:1974:i:2:p:245-253.
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    File URL: http://hdl.handle.net/10.2307/1238752
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    Citations

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    Cited by:

    1. Sparks, Amy L. & Bravo-Ureta, Boris E., 1992. "Effect of Imports on US Prices for Fresh Apples," 1992 Occasional Paper Series No. 6 197876, International Association of Agricultural Economists.
    2. Cleasby, R. C. G. & Darroch, M. A. G. & Dushmanitch, V. Y., 1991. "The Demand For And Supply Of South African Deciduous Fruit Exports : A Dynamic Analysis," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 30(4), December.
    3. Allen, Roy E. & Perloff, Jeffrey M, 1985. "Alternate bearing in Californian pears and avocados," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt9xf130p0, Department of Agricultural & Resource Economics, UC Berkeley.
    4. Carman, Hoy F., 1981. "Income Tax Reform And California Orchard Development," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 6(2), pages 1-16, December.
    5. Reynolds, Sanri & Meyer, Ferdinand & Cutts, Michela & Vink, Nick, 2009. "Modeling Long-term Commodities: the Development of a Simulation Model for the South African Wine Industry within a Partial Equilibrium Framework," Journal of Wine Economics, Cambridge University Press, vol. 4(2), pages 201-218, January.
    6. Bazen, Ernest F. & Roberts, Roland K. & Travis, John & Larson, James A., 2008. "Factors Affecting Hay Supply and Demand in Tennessee," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6889, Southern Agricultural Economics Association.
    7. Julian M. Alston & John W. Freebairn & John J. Quilkey, 1980. "A Model Of Supply Response In The Australian Orange Growing Industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 24(3), pages 248-267, December.
    8. Kinney, William & Green, Richard & Carman, Hoy & O'Connell, John, 1987. "An Analysis of Economic Adjustments in the California-Arizona Lemon Industry," Research Reports 251939, University of California, Davis, Giannini Foundation.
    9. Allen, Roy E. & Perloff, Jeffrey M, 1985. "Alternate bearing in Californian pears and avocados," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt9xf130p0, Department of Agricultural & Resource Economics, UC Berkeley.
    10. Rae, Allan N., 1978. "An Evaluation Of A New Zealand Marketing Board'S Supply Diversion Strategies," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 22(1), pages 1-21, April.

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