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Farm-Level Price Formation for Fresh Sweet Cherries

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Author Info

  • Flaming, Stephen
  • Marsh, Thomas L.
  • Wahl, Thomas I.

Abstract

We estimate price formation in the sweet cherry market using an inverse demand system with farm-level price and quantity data from states in the Pacific Northwest and California. Between 0.60 and 0.78 of the variation in annual cherry price is explained by the states’ production, domestic consumption, and exports. Washington and California prices are most responsive to their own quantity. Output flexibilities indicate that Oregon is responsive to a change in quantity supplied to the domestic market. Results also indicate that cherry price is most sensitive to quantity supplied to the export and domestic markets.

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File URL: http://purl.umn.edu/43495
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Bibliographic Info

Article provided by Food Distribution Research Society in its journal Journal of Food Distribution Research.

Volume (Year): 38 (2007)
Issue (Month): 2 (July)
Pages:

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Handle: RePEc:ags:jlofdr:43495

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Web page: http://fdrs.ag.utk.edu/
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Related research

Keywords: Demand and Price Analysis;

References

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  1. Fengxia Dong & Thomas L. Marsh & Kyle W. Stiegert, 2003. "State Trading Enterprises in a Differentiated Environment: The Case of Global Malting Barley Markets," Food and Agricultural Policy Research Institute (FAPRI) Publications 03-wp350, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
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Cited by:
  1. Florkowski, Wojciech J. & Carew, Richard, 2011. "An Analysis of Price Determination in the Sweet Cherry Markets of British Columbia, Washington, Oregon and California," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114352, European Association of Agricultural Economists.

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