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Pesticide residues and vertical integration in Florida strawberries and tomatoes

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  • Richard L. Kilmer

    (Department of Food and Resource Economics, University of Florida in Gainesville, Gainesville, Florida 32611. E-mail: kilmer@ufl.edu; madangrimo@aol.com; stevens@fred.ifas.ufl.edu)

  • Anouk M. Andre

    (Department of Food and Resource Economics, University of Florida in Gainesville, Gainesville, Florida 32611. E-mail: kilmer@ufl.edu; madangrimo@aol.com; stevens@fred.ifas.ufl.edu)

  • Thomas J. Stevens

    (Department of Food and Resource Economics, University of Florida in Gainesville, Gainesville, Florida 32611. E-mail: kilmer@ufl.edu; madangrimo@aol.com; stevens@fred.ifas.ufl.edu)

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    Abstract

    Government regulations and consumer concern about pesticide residues in food may increase the costs of production and marketing for producers and processors associated with food safety risks. Vertical coordination is an economic response for mitigating the costs associated with uncertain pesticide residue levels. Data from a survey of Florida strawberry and tomato growers were used to test the hypothesis that vertical integration is associated with a lower mean and variance of pesticide residues. The results confirm a significant negative relationship between vertical integration and fungicide and insecticide residues in Florida strawberries and insecticides in Florida tomatoes. However, fungicides in tomatoes had the opposite effect. [Econ-Lit citations: L220, L660] © 2001 John Wiley & Sons, Inc.

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    File URL: http://hdl.handle.net/10.1002/agr.1012
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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

    Volume (Year): 17 (2001)
    Issue (Month): 2 ()
    Pages: 213-226

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    Handle: RePEc:wly:agribz:v:17:y:2001:i:2:p:213-226

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    Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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    1. Misra, Sukant K. & Huang, Chung L. & Ott, Stephen L., 1991. "Consumer Willingness To Pay For Pesticide-Free Fresh Produce," Western Journal of Agricultural Economics, Western Agricultural Economics Association, Western Agricultural Economics Association, vol. 16(02), December.
    2. Hennessy, David A., 1996. "Information Asymmetry As a Reason for Food Industry Vertical Integration," Staff General Research Papers, Iowa State University, Department of Economics 5032, Iowa State University, Department of Economics.
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    Cited by:
    1. David A. Hennessy & Donald Lien, 2003. "Ledger Provision in Hog Marketing Contracts," Center for Agricultural and Rural Development (CARD) Publications 03-wp336, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    2. Naiquan Sang & Randy Stringer, 2003. "Food Safety Concerns and Changing Procurement Arrangements by Food Processors: A Conjoint Analysis," School of Economics Working Papers, University of Adelaide, School of Economics 2003-02, University of Adelaide, School of Economics.
    3. Cohen, Jeffrey P. & Paul, Catherine J. Morrison, 2005. "Agglomeration economies and industry location decisions: the impacts of spatial and industrial spillovers," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 35(3), pages 215-237, May.

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