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Certification And Supply Response In The Organic Lettuce Market

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  • Lohr, Luanne
  • Park, Timothy A.

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 producersÂ’' 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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File URL: http://purl.umn.edu/30948
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Bibliographic Info

Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 17 (1992)
Issue (Month): 02 (December)
Pages:

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Handle: RePEc:ags:jlaare:30948

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Web page: http://waeaonline.org/
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Related research

Keywords: Crop Production/Industries; Industrial Organization;

References

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  1. LaFrance, Jeffrey T. & Burt, Oscar R., 1983. "A Modified Partial Adjustment Model Of Aggregate U.S. Agricultural Supply," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 8(01), July.
  2. Godfrey, Leslie G, 1978. "Testing against General Autoregressive and Moving Average Error Models When the Regressors Include Lagged Dependent Variables," Econometrica, Econometric Society, vol. 46(6), pages 1293-1301, November.
  3. Hayes, Dermot J. & Wahl, Thomas I. & Williams, Gary W., 1990. "Testing Restrictions on a Model of Japanese Meat Demand," Staff General Research Papers 10940, Iowa State University, Department of Economics.
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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.

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