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An Evaluation of California's Mandated Commodity Promotion Programs

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  • Julian M. Alston
  • John M. Crespi
  • Harry M. Kaiser
  • Richard J. Sexton

Abstract

This article provides an overview of mandated commodity programs in California, and summarizes and interprets existing evidence on their economic impacts. The analysis draws upon the recent book edited by the authors: The Economics of Commodity Promotion Programs: Lessons from California. New York: Peter Lang Publishing, April 2005. The book documents the institutional arrangements, summarizes the history of recent litigation, and presents the results of a number of benefit-cost studies of mandated commodity programs in California. The overwhelming conclusion from the studies reported in the article is that the programs have been very profitable for California's agricultural producers.

Suggested Citation

  • Julian M. Alston & John M. Crespi & Harry M. Kaiser & Richard J. Sexton, 2007. "An Evaluation of California's Mandated Commodity Promotion Programs," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(1), pages 40-63.
    • Handle: RePEc:oup:revage:v:29:y:2007:i:1:p:40-63.
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    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2006.00329.x
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    1. Mingxia Zhang & Richard J. Sexton, 2002. "Optimal Commodity Promotion when Downstream Markets are Imperfectly Competitive," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 352-365.
    2. Alston, Julian M. & Carman, Hoy F. & Chalfant, James A. & Crespi, John M. & Sexton, Richard J. & Venner, Raymond J., 1998. "The California Prune Board's Promotion Program: An Evaluation," Research Reports 11926, University of California, Davis, Giannini Foundation.
    3. Alston, Julian M. & Carman, Hoy F. & Chalfant, James A., 1994. "EVALUATING PRIMARY PRODUCT PROMOTION: The Returns to Generic Advertising by a Producer Cooperative in a Small, Open Economy," Promotion in the Marketing Mix: What Works, Where and Why, April 28-29, 1994, Toronto, Canada 279601, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    4. Bernard K. Armah & James E. Epperson, 1997. "Export demand for US orange juice: Impacts of US export promotion programs," Agribusiness, John Wiley & Sons, Ltd., vol. 13(1), pages 1-10.
    5. Goddard, E.W., 1994. "Nec-63 Conference On Promotion In The Marketing Mix: What Works Where And Why," Promotion in the Marketing Mix: What Works, Where and Why, April 28-29, 1994, Toronto, Canada 279588, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    6. E. W. Goddard & M. L. McCutcheon, 1993. "Optimal Producer Investment in Generic Advertising: The Case of Fluid Milk in Ontario and Quebec," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 41(3), pages 329-347, November.
    7. Meenakshi Venkateswaran & Henry W. Kinnucan, 1990. "Evaluating Fluid Milk Advertising in Ontario: The Importance of Functional Form," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(3), pages 471-488, November.
    8. John M. Crespi, 2003. "The Generic Advertising Controversy: How Did We Get Here and Where Are We Going?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(2), pages 294-315.
    9. John Lenz & Harry M. Kaiser & Chanjin Chung, 1998. "Economic analysis of generic milk advertising impacts on markets in New York State," Agribusiness, John Wiley & Sons, Ltd., vol. 14(1), pages 73-83.
    10. Gary W. Williams, 1999. "Commodity checkoff programs as alternative producer investment opportunities: The case of soybeans," Agribusiness, John Wiley & Sons, Ltd., vol. 15(4), pages 539-552.
    11. Julian M. Alston & John W. Freebairn & Jennifer S. James, 2001. "Beggar-Thy-Neighbor Advertising: Theory and Application to Generic Commodity Promotion Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 888-902.
    12. Weiss, Kenneth R. & Green, Richard D. & Havenner, Arthur M., 1996. "Walnuts in Japan: A Case Study of Generic Promotion Under the USDA's Market Promotion Program," Agricultural Commodity Promotion Policies and Programs in the Global Agri-Food System, May 26-27, 1996, Cancun, Mexico 279647, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    13. Mary Lou McCutcheon & Ellen Goddard, 1992. "Optimal Producer and Social Payoff from Generic Advertising: The Case of the Canadian Supply-managed Egg Sector," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 40(1), pages 1-24, March.
    14. Costa, Ecio de Farias & Epperson, James E. & Huang, Chung L. & McKissick, John C., 2002. "Impacts Of Advertising And Promotion On The Demand For Scanned Purchases Of Vidalia Onions," Journal of Food Distribution Research, Food Distribution Research Society, vol. 33(1), pages 1-10, March.
    15. Onunkwo, Izuchukwu M. & Epperson, James E., 1999. "Export Demand For U.S. Pecans: Impacts Of U.S. Export Promotion," 1999 Annual meeting, August 8-11, Nashville, TN 21686, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    Cited by:

    1. Boland, Michael A. & Crespi, John M. & Silva, Jena & Xia, Tian, 2012. "Measuring the Benefits to Advertising under Monopolistic Competition," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(1), pages 1-12, April.
    2. Moore, Eli D. & Williams, Gary W., 2008. "Is the Texas Pecan Checkoff Program Working?," Reports 90497, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
    3. Julian M. Alston & Joanna C. Parks, 2012. "The returns to promotion of healthy choices in Tasmania: are you in the dark about the power of mushrooms?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(3), pages 347-365, July.
    4. Gergaud, Olivier & Livat, Florine & Rickard, Bradley & Warzynski, Frederic, 2016. "The Costs and Benefits of Collective Reputation: Who gains and who loses from generic promotion programs?," Working Papers 231135, American Association of Wine Economists.

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