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Knowing where organic markets move next: An analysis of developing countries in the pineapple market

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  • Kleemann, Linda

Abstract

As consumers' demand for organic products grows, selling organic products potentially opens up profitable market participation options for farmers in developing countries. This paper studies two aspects of profitability for the producers. It uses hedonic demand theory and empirical analysis to examine the relation between conventional and organic markets using the strongly growing pineapple market as an example. The analysis confirms a nonlinear dependence of the organic market on the conventional one and a non-declining premium. The author concludes that there is a larger potential of the organic market and hence the number of farmers in developing countries who can potentially benefit from growing organic products. --

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File URL: http://dx.doi.org/10.5018/economics-ejournal.ja.2014-14
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Bibliographic Info

Article provided by Kiel Institute for the World Economy in its journal Economics: The Open-Access, Open-Assessment E-Journal.

Volume (Year): 8 (2014)
Issue (Month): 14 ()
Pages: 1-34

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Handle: RePEc:zbw:ifweej:201414

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Keywords: Price transmission; private voluntary standards; organic market; STAR model; TAR model;

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  1. Gary D. Thompson, 1998. "Consumer Demand for Organic Foods: What We Know and What We Need to Know," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 80(5), pages 1113-1118.
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  3. Epple, Dennis, 1987. "Hedonic Prices and Implicit Markets: Estimating Demand and Supply Functions for Differentiated Products," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 95(1), pages 59-80, February.
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  6. Boland, Michael A. & Schroeder, Ted C., 2002. "Marginal Value Of Quality Attributes For Natural And Organic Beef," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, Southern Agricultural Economics Association, vol. 34(01), April.
  7. Combris, Pierre & Lecocq, Sebastien & Visser, Michael, 1997. "Estimation for a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter?," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 107(441), pages 390-402, March.
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  9. Elliott, Graham & Rothenberg, Thomas J & Stock, James H, 1996. "Efficient Tests for an Autoregressive Unit Root," Econometrica, Econometric Society, Econometric Society, vol. 64(4), pages 813-36, July.
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  11. Teisl, Mario F. & Roe, Brian & Hicks, Robert L., 2002. "Can Eco-Labels Tune a Market? Evidence from Dolphin-Safe Labeling," Journal of Environmental Economics and Management, Elsevier, vol. 43(3), pages 339-359, May.
  12. Minot, Nicholas & Ngigi, Margaret, 2004. "Are horticultural exports a replicable success story?," MTID discussion papers, International Food Policy Research Institute (IFPRI) 73, International Food Policy Research Institute (IFPRI).
  13. Vagneron, Isabelle & Faure, Guy & Loeillet, Denis, 2009. "Is there a pilot in the chain? Identifying the key drivers of change in the fresh pineapple sector," Food Policy, Elsevier, Elsevier, vol. 34(5), pages 437-446, October.
  14. Bjorner, Thomas Bue & Hansen, L.G.Lars Garn & Russell, Clifford S., 2004. "Environmental labeling and consumers' choice--an empirical analysis of the effect of the Nordic Swan," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 411-434, May.
  15. Abdulai, Awudu, 2000. "Spatial price transmission and asymmetry in the Ghanaian maize market," Journal of Development Economics, Elsevier, Elsevier, vol. 63(2), pages 327-349, December.
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  17. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, Elsevier, vol. 108(1), pages 1-24, May.
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