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The farm-retail price spread: The case of postharvest pesticides in fresh grapefruit packinghouses

Author

Listed:
  • Jean C. Buzby

    (Agricultural Economist in the Department of Agricultural Economics, University of Kentucky stationed at the Economic Research Service)

  • John T. Jones

    (PhD candidate in the Department of Economics, University of Kentucky)

  • John M. Love

    (Agricultural Economist in the Economic Research Service, United States Department of Agriculture)

Abstract

This article uses marketing margin theory and Gardner's six equation model to estimate the impacts of banning a postharvest pesticide from use in the fresh grapefruit industry. Specifically, the study calculated four impacts of a postharvest pesticide ban: the impacts are on the farm price, retail price, farm-retail price ratio, and use of agricultural inputs for fresh grapefruit. The percent of postharvest losses following the ban is varied to determine the sensitivity of the cost of the ban to the grapefruit industry and society as a whole. ©1994 by John Wiley & Sons, Inc.

Suggested Citation

  • Jean C. Buzby & John T. Jones & John M. Love, 1994. "The farm-retail price spread: The case of postharvest pesticides in fresh grapefruit packinghouses," Agribusiness, John Wiley & Sons, Ltd., vol. 10(6), pages 521-528.
    • Handle: RePEc:wly:agribz:v:10:y:1994:i:6:p:521-528
    DOI: 10.1002/1520-6297(199411/12)10:6<521::AID-AGR2720100609>3.0.CO;2-M
    as

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    References listed on IDEAS

    as
    1. Bruce L. Gardner, 1975. "The Farm-Retail Price Spread in a Competitive Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(3), pages 399-409.
    2. B. S. Fisher, 1981. "The Impact of Changing Marketing Margins on Farm Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(2), pages 261-263.
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