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Price spreads for California-Arizona navel oranges during and after the 1985 prorate suspension

Author

Listed:
  • Charles C. Lyon

    (Department of Agricultural Economics, University of Arizona, Tucson, Arizona)

  • Gary D. Thompson

    (Department of Agricultural Economics, University of Arizona, Tucson, Arizona)

  • Roger Fox

    (Department of Agricultural Economics, University of Arizona, Tucson, Arizona)

Abstract

In January 1985, rate-of-flow controls (“prorate”) for California-Arizona navel oranges were suspended for half the marketing season. This article compares the behavior of industry marketing margins during the deregulated period with that of regulated seasons in order to assess the impacts of the prorate suspension on the navel orange marketing system. Econometric results indicate that relative to subsequent regulated seasons, marketing margins contracted during the prorate suspension period. These results suggest that distributors did not exercise market power during the suspension period in order to maintain consumer prices at pre-suspension levels while depressing grower prices.

Suggested Citation

  • Charles C. Lyon & Gary D. Thompson & Roger Fox, 1989. "Price spreads for California-Arizona navel oranges during and after the 1985 prorate suspension," Agribusiness, John Wiley & Sons, Ltd., vol. 5(6), pages 573-595.
    • Handle: RePEc:wly:agribz:v:5:y:1989:i:6:p:573-595
    DOI: 10.1002/1520-6297(198911)5:6<573::AID-AGR2720050604>3.0.CO;2-8
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    References listed on IDEAS

    as
    1. Powers, Nicholas J. & Zepp, Glenn A. & Hoff, Frederic L., 1986. "Assessment of a Marketing Order Prorate Suspension: A Study of California - Arizona Naval Oranges," Agricultural Economic Reports 308010, United States Department of Agriculture, Economic Research Service.
    2. Glenn Nelson & Tom H. Robinson, 1978. "Retail and Wholesale Demand and Marketing Order Policy for Fresh Navel Oranges," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(3), pages 502-509.
    3. Gary D. Thompson & Charles C. Lyon, 1989. "Marketing Order Impacts on Farm-Retail Price Spreads: The Suspension of Prorates on California-Arizona Navel Oranges," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(3), pages 647-660.
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