Grocery Retailer Behavior in Perishable Fresh Produce Procurement
AbstractThis study examines supermarket retailer behavior in the procurement of iceberg lettuce from California and Arizona, vine-ripe and mature-green tomatoes from California, and mature-green tomatoes from Florida. The analysis relies upon both a reduced-form specification of farm-retail price spreads and a structural model of procurement for a perishable commodity with inelastic supply. The evidence supports a conclusion that buyers have been able to exercise oligopsony power in procuring iceberg lettuce from grower-shippers in California and Arizona. The evidence regarding buyer market power is more mixed for fresh tomatoes. The apparent success of the Florida mature-green tomato industry in enforcing a price floor and capturing a significant share of the surplus in excess of the price floor demonstrates the potential benefits to producers from coordinated behavior.
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Bibliographic InfoArticle provided by De Gruyter in its journal Journal of Agricultural & Food Industrial Organization.
Volume (Year): 3 (2005)
Issue (Month): 1 (February)
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Web page: http://www.degruyter.com
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- Li, Lan & Carman, Hoy F. & Sexton, Richard J., 2005.
"Grocery Retailer Pricing Behavior for California Avocados with Implications for Industry Promotion Strategies,"
2005 Annual meeting, July 24-27, Providence, RI
19498, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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- Johan F.M. Swinnen & Anneleen Vandeplas, 2010.
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- Cotterill, Ronald W., 2006. "Antitrust analysis of supermarkets: global concerns playing out in local markets," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(1), March.
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