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Knowing where organic markets move next: An analysis of developing countries in the pineapple market

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  • Kleemann, Linda

Abstract

As consumers' demand for organic products grows, selling organic products potentially opens up profitable market participation options for farmers in developing countries. This paper studies two aspects of profitability for the producers. It uses hedonic demand theory and empirical analysis to examine the relation between conventional and organic markets using the strongly growing pineapple market as an example. The analysis confirms a nonlinear dependence of the organic market on the conventional one and a non-declining premium. The author concludes that there is a larger potential of the organic market and hence the number of farmers in developing countries who can potentially benefit from growing organic products.

Suggested Citation

  • Kleemann, Linda, 2014. "Knowing where organic markets move next: An analysis of developing countries in the pineapple market," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 8, pages 1-34.
    • Handle: RePEc:zbw:ifweej:201414
    DOI: 10.5018/economics-ejournal.ja.2014-14
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    Cited by:

    1. Luz Maria Castro & Baltazar Calvas & Thomas Knoke, 2015. "Ecuadorian Banana Farms Should Consider Organic Banana with Low Price Risks in Their Land-Use Portfolios," PLOS ONE, Public Library of Science, vol. 10(3), pages 1-23, March.

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    More about this item

    Keywords

    Price transmission; private voluntary standards; organic market; STAR model; TAR model;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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