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Certification and Supply Response in the Organic Lettuce Market

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  • Lohr, Luanne

Abstract

The impact of supply relationships and certification programs on the organic lettuce market is examined using an integrated partial adjustment and asymmetric supply response model. Costs associated with organic certification, production, and marketing have not restricted producers' abilities to respond to price signals. Organic growers allocate output between certified and noncertified markets in response to changing price premiums. Estimates of short-run supply elasticities indicate that organic lettuce growers are more responsive to price changes than producers of nonorganic lettuce. Long-run elasticity has increased since 1988, a change that coincides with the market entry of larger producers.
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Suggested Citation

  • Lohr, Luanne, 1992. "Certification and Supply Response in the Organic Lettuce Market," Staff Paper Series 201048, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midasp:201048
    DOI: 10.22004/ag.econ.201048
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    Cited by:

    1. Steven C. Blank & Gary D. Thompson, 2004. "Can/Should/Will A Niche Become the Norm? Organic Agriculture's Short Past and Long Future," Contemporary Economic Policy, Western Economic Association International, vol. 22(4), pages 483-503, October.
    2. Bahalou Horeh, Marziyeh & Elbakidze, Levan, 2020. "Economic Efficiency of Food Safety Modernization Act: Preventing Illnesses from Contaminated Water," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304637, Agricultural and Applied Economics Association.
    3. Horeh, Marziyeh Bahalou & Elbakidze, Levan, 2022. "Produce Tracing from Farm to Wholesale and Food Safety in the U.S," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322357, Agricultural and Applied Economics Association.

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    Keywords

    Crop Production/Industries; Marketing;

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