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Economies of Scale in the Floriculture Industry

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Author Info

  • Schumacher, Sara K.
  • Marsh, Thomas L.

Abstract

This study investigated the cost structure of the floriculture industry in the United States. Economies of scale and input elasticities were estimated with a normalized quadratic cost function. Results suggest that economies of scale exist in the floriculture industry. As producers become large and more automated, they have a cost advantage relative to smaller producers who are producing the same output product mix. The existence of economies of scale suggests that average grower size can increase in the future as growers increase in size to take advantage of cost efficiencies.

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File URL: http://purl.umn.edu/43145
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Bibliographic Info

Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 35 (2003)
Issue (Month): 03 (December)
Pages:

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Handle: RePEc:ags:joaaec:43145

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Web page: http://www.saea.org/jaae/jaae.htm
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Related research

Keywords: duality; economies of scale; floriculture; nonprice variables; Q12; C31; D20;

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Cited by:
  1. Henry Vega, 2008. "The Transportation Costs of Fresh Flowers: A Comparison between Ecuador and Major Exporting Countries," IDB Publications 9293, Inter-American Development Bank.
  2. Deininger, Klaus W. & Jin, Songqing, 2005. "Land Sales and Rental Markets in Transition: Evidence from Rural Vietnam," 2005 Annual meeting, July 24-27, Providence, RI 19359, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Henry Vega, 2008. "Transportation Costs of Fresh Flowers: A Comparison across Major Exporting Countries," IDB Publications 48178, Inter-American Development Bank.

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