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A source-differentiated analysis of tropical fresh fruit imports

Author

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  • Nzaku, Kilungu
  • Houston, Jack E.
  • Fonsah, Esendugue Greg

Abstract

A source-differentiated Almost Ideal Demand System model is used to analyze U.S. demand for the major tropical fresh fruit imports from different countries of origin. The tropical fresh fruits chosen for analysis include fresh bananas, fresh pineapples, papayas, and mangoes/guavas. To address endogeneity problem, we utilized an iterative 3SLS estimation method. Results show that consumer incomes are a major determinant of tropical fresh fruit import demand and most of the tropical fresh fruit imports are luxury commodities. U.S. consumers have a preference for Guatemalan and Costa Rican bananas, Costa Rican and Honduras pineapples, and Ecuador and Mexican mangoes. A competitive relationship exists between bananas from Ecuador and Colombia, Ecuador and Costa Rica, Costa Rica, and Ecuador and bananas in general face competition from the other tropical fresh fruits, particularly from most pineapple and mango sources, and all the other fresh fruit imports. Based on the study findings, the countries of origin could determine how they could increase their products market share in the U.S. and likely impact of price changes of their commodity. For example, Mexico could utilize price competition strategies to retain and regain its declining U.S. mango market share.

Suggested Citation

  • Nzaku, Kilungu & Houston, Jack E. & Fonsah, Esendugue Greg, 2010. "A source-differentiated analysis of tropical fresh fruit imports," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61663, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61663
    DOI: 10.22004/ag.econ.61663
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    References listed on IDEAS

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    1. Boonsaeng, Tullaya & Fletcher, Stanley M. & Carpio, Carlos E., 2008. "European Union Import Demand for In-Shell Peanuts," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(3), pages 1-11, December.
    2. Dimitri, Carolyn & Tegene, Abebayehu & Kaufman, Phillip R., 2003. "U.S. Fresh Produce Markets: Marketing Channels, Trade Practices, And Retail Pricing Behavior," Agricultural Economic Reports 33907, United States Department of Agriculture, Economic Research Service.
    3. Amy L. Sparks, 1992. "A system-wide approach to import demand for US fresh oranges," Agribusiness, John Wiley & Sons, Ltd., vol. 8(3), pages 253-260.
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    1. Hejazi, Mina & Grant, Jason, 2013. "Do Trade Costs Affect the Extensive Margin of Trade? Lessons from U.S. Fresh Fruits and Vegetables Imports," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150226, Agricultural and Applied Economics Association.

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