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The U.S. Apple Industry: Econometric Model And Projections

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  • Willett, Lois Schertz

Abstract

A dynamic model of the U.S. apple industry, including relationships for bearing acres, production, utilization, and allocation to the fresh, canned, frozen, juice, dried and other markets, is specified. Demands for each of these markets are modeled. Model coefficients are obtained using Zellner's seemingly unrelated regression procedure and data from 1971 through 1990. Elasticities and flexibilities are compared with other studies. Projections indicate that price fluctuations will continue in the industry when acreage is held at 1990 levels. A ten percent increase in fresh exports strengthens all apple prices. However, a ten percent decrease in the price of juice imports mitigates some of this effect.

Suggested Citation

  • Willett, Lois Schertz, 1993. "The U.S. Apple Industry: Econometric Model And Projections," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 22(2), pages 1-13, October.
    • Handle: RePEc:ags:arerjl:31552
    DOI: 10.22004/ag.econ.31552
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    References listed on IDEAS

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    1. Hayward, Russel A. & Criner, George K. & Skinner, Steven P., 1984. "Apple Price And Production Forecasts For Maine And The United States," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 13(2), pages 1-9, October.
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    3. Ben C. French & Jim L. Matthews, 1971. "A Supply Response Model for Perennial Crops," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(3), pages 478-490.
    4. Huang, Kuo S., 1985. "U.S. Demand for Food: A Complete System of Price and Income Effects," Technical Bulletins 157014, United States Department of Agriculture, Economic Research Service.
    5. Unknown, 1975. "Foreign Agricultural Trade of the United States July 1975," Foreign Agricultural Trade of the United States (FATUS) 164251, United States Department of Agriculture, Economic Research Service.
    6. Unknown, 1975. "Foreign Agricultural Trade of the United States March 1975," Foreign Agricultural Trade of the United States (FATUS) 164253, United States Department of Agriculture, Economic Research Service.
    7. Unknown, 1968. "Foreign Agricultural Trade of the United States July 1968," Foreign Agricultural Trade of the United States (FATUS) 164119, United States Department of Agriculture, Economic Research Service.
    8. Unknown, 1975. "Foreign Agricultural Trade of the United States April 1975," Foreign Agricultural Trade of the United States (FATUS) 164246, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Wu, Feng & Guan, Zhengfei & Whitaker, Vance, 2015. "Optimizing yield distribution under biological and economic constraints: Florida strawberries as a model for perishable commodities," Agricultural Systems, Elsevier, vol. 141(C), pages 113-120.
    2. Tozer, Peter R. & Marsh, Thomas L., 2018. "Dynamic regional model of the US apple industry: Consequences of supply or demand shocks due to pest or disease outbreaks and control," Agricultural Systems, Elsevier, vol. 164(C), pages 252-263.

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    Keywords

    Crop Production/Industries;

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