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On Discarding Low Quality Produce

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  • Dung Nguyen
  • Trang T. Vo

Abstract

This paper considers a model of optimal culling in which demand is generally nonlinear. We show that the shape of the break-even quality price change curve depends on both the concavity-convexity of the demand function and the price elasticity. We specify that the actual quality price change is an increasing function of the minimum quality but at a decreasing rate. Conditions ate then obtained to ensure that a minimum quality level chosen from a permissible set would yield maximum total profits for the industry.

Suggested Citation

  • Dung Nguyen & Trang T. Vo, 1985. "On Discarding Low Quality Produce," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 614-618.
    • Handle: RePEc:oup:ajagec:v:67:y:1985:i:3:p:614-618.
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    File URL: http://hdl.handle.net/10.2307/1241083
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    Cited by:

    1. Sarah Jansen & William Foster & Gustavo Anríquez & Jorge Ortega, 2021. "Understanding Farm-Level Incentives within the Bioeconomy Framework: Prices, Product Quality, Losses, and Bio-Based Alternatives," Sustainability, MDPI, vol. 13(2), pages 1-21, January.
    2. Zago, Angelo M., 2002. "Quality Indicators And Intermediate Products: A Non-Parametric Approach," 2002 Annual meeting, July 28-31, Long Beach, CA 19591, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Powers, Nicholas J., 1990. "Federal Marketing Orders for Fruits, Vegetables, Nuts, and Specialty Crops," Agricultural Economic Reports 308137, United States Department of Agriculture, Economic Research Service.

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