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An Analysis of Contracts in the Idaho Processing-Potato Industry

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  • Bolotova, Yuliya
  • Patterson, Paul E.

Abstract

This paper presents an analysis of a sample of contracts used by the Idaho processing-potato industry in recent years. A particular focus is on the price- and quality-related provisions of these contracts. Potato growers are paid an incentive­ adjusted price. This price is calculated using a complex system of incentives and penalties for potato size and quality characteristics. These size and quality factors are those that most directly affect product recovery (:finished product as a percentage of raw-product usage) and the processed-product quality. Although most of the provisions of the analyzed contracts are similar, there are some differences in the level and scope of incentives and penalties. The paper concludes by suggesting directions for future research in this area that would help shed light on the effectiveness of contractual relations in the analyzed industry.

Suggested Citation

  • Bolotova, Yuliya & Patterson, Paul E., 2009. "An Analysis of Contracts in the Idaho Processing-Potato Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 40(1), pages 1-7, March.
    • Handle: RePEc:ags:jlofdr:162112
    DOI: 10.22004/ag.econ.162112
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    Cited by:

    1. Bolotova, Yuliya V., 2021. "Market Power in the United States Potato Industry," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 3(4), October.

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    Keywords

    Agribusiness; Crop Production/Industries;

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