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Is stabilization of potato price effective? Empirical evidence from the Idaho Russet Burbank potato market

Author

Listed:
  • Yuliya Bolotova

    (Department of Agricultural Economics and Rural Sociology, University of Idaho, Moscow, ID 83844-2334)

  • Christopher S. McIntosh

    (Department of Agricultural Economics and Rural Sociology, University of Idaho, Moscow, ID 83844-2334)

  • Paul E. Patterson

    (Department of Agricultural Economics and Rural Sociology, University of Idaho, Idaho Falls, ID 83402-1575)

  • Kalamani Muthusamy

    (Wisconsin Public Power Inc., 1425 Corporate Center Drive Sun Prairie, WI 53590-9110)

Abstract

High fresh potato price volatility, decreasing demand for fresh potatoes, and potato prices below the cost of production led to a decision of a group of Idaho potato growers to organize the United Potato Growers of Idaho, a marketing cooperative. The potato supply management program was developed to coordinate production and marketing of fresh potatoes. To evaluate the effectiveness of this program, the authors examine the level and volatility of Idaho Russet Burbank weekly shipping point prices during two periods: before the cooperative was organized and when the cooperative was in the market. They found empirical evidence suggesting that the analyzed prices were higher and less volatile during the period when the cooperative was in the market. © 2010 Wiley Periodicals, Inc.

Suggested Citation

  • Yuliya Bolotova & Christopher S. McIntosh & Paul E. Patterson & Kalamani Muthusamy, 2010. "Is stabilization of potato price effective? Empirical evidence from the Idaho Russet Burbank potato market," Agribusiness, John Wiley & Sons, Ltd., vol. 26(2), pages 177-201.
    • Handle: RePEc:wly:agribz:v:26:y:2010:i:2:p:177-201
    DOI: 10.1002/agr.20213
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    References listed on IDEAS

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    1. John Connor, 2005. "Collusion and price dispersion," Applied Economics Letters, Taylor & Francis Journals, vol. 12(6), pages 335-338.
    2. Susan Athey & Kyle Bagwell & Chris Sanchirico, 2004. "Collusion and Price Rigidity," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 71(2), pages 317-349.
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    7. Bolotova, Yuliya & McIntosh, Christopher S. & Muthusamy, Kalamani & Patterson, Paul E., 2008. "The Impact of Coordination of Production and Marketing Strategies on Price Behavior: Evidence from the Idaho Potato Industry," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 11(3), pages 1-30, September.
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    Cited by:

    1. Fuller, Kate Binzen & Brester, Gary & Boland, Michael, "undated". "Fries, Bakers, Tots, and Seed: Genetic Engineering and Varietal Selection," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 261227, Agricultural and Applied Economics Association.
    2. Kate Binzen Fuller & Gary W Brester & Michael A Boland, 2018. "Genetic Engineering and Risk in Varietal Selection of Potatoes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(2), pages 600-608.
    3. Yuliya V. Bolotova, 2016. "Agricultural Supply Management and Market Power: Evidence from the U.S. Dairy and Potato Industries," Agribusiness, John Wiley & Sons, Ltd., vol. 32(4), pages 563-568, November.
    4. Bolotova, Yuliya, 2014. "Agricultural Supply Management and Antitrust in the United States System of Agribusiness," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(3), pages 1-24, September.

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