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Effects of marketing order prorate suspensions on California-Arizona navel oranges

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  • Nicholas J. Powers

    (Economic Research Service, US Department of Agriculture)

Abstract

An econometric analysis shows that the late-season suspensions of handler prorates in the Federal marketing order for California-Arizona navel oranges during the 1983 to 1989 seasons increased quantities used fresh and lowered prices for fresh navels. The suspensions also decreased quantities processed which increased prices for processing navels. Because demand is more price inelastic in the higher-priced, fresh-use market than for processing, growers' revenue fell during the suspensions. The suspensions boosted total marketers' and consumers' economic well-being as measured by economic surplus. The size of the suspension effects depends largely on the volumes of navels shipped during the suspension and crop size.

Suggested Citation

  • Nicholas J. Powers, 1991. "Effects of marketing order prorate suspensions on California-Arizona navel oranges," Agribusiness, John Wiley & Sons, Ltd., vol. 7(3), pages 203-229.
    • Handle: RePEc:wly:agribz:v:7:y:1991:i:3:p:203-229
    DOI: 10.1002/1520-6297(199105)7:3<203::AID-AGR2720070304>3.0.CO;2-3
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    References listed on IDEAS

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    1. Berck, Peter & Perloff, Jeffrey M, 1984. "A Dynamic Analysis of Marketing Orders, Voting , and Welfare," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt3d09786w, Department of Agricultural & Resource Economics, UC Berkeley.
    2. Peter Berck & Jeffrey M. Perloff, 1985. "A Dynamic Analysis of Marketing Orders, Voting, and Welfare," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 487-496.
    3. repec:cdl:agrebk:623332 is not listed on IDEAS
    4. Glenn Nelson & Tom H. Robinson, 1978. "Retail and Wholesale Demand and Marketing Order Policy for Fresh Navel Oranges," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(3), pages 502-509.
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    Cited by:

    1. Nicholas J. Powers, 1994. "Orderly marketing for oranges: Public interest versus private interest," Agribusiness, John Wiley & Sons, Ltd., vol. 10(1), pages 61-82.

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