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A Demand Analysis for Fresh Tomatoes in the Dallas/Fort Worth Grocery Market

Author

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  • Lopez, Jose
  • Davis, Charade

Abstract

Tomato consumption and production have been rapidly increasing. With most of the U.S. tomatoes produced being processed, tomato imports for the fresh market are significantly greater than tomato imports for the processed market. Consequently, it is critical and increasingly valuable for fresh-market producers who sell directly to grocery chains, farmers’ markets, and food service providers to analyze emerging consumption trends as well as the substitution patterns among different types of tomatoes and vegetables. This study uses the Almost Ideal Demand System (AIDS) to estimate the demand parameters for fresh tomatoes in the Dallas/Fort Worth grocery market using AC Nielsen Homescan data for the year 2012. Unlike previous fresh fruit and vegetable studies, the study reports disaggregated tomato elasticities, including Hicksian and Marshallian price elasticities and expenditure elasticities. The analysis identifies tomato types that are highly marketable in the Dallas/Fort Worth metropolitan area and provides insight on tomato varieties that could be grown for the region.

Suggested Citation

  • Lopez, Jose & Davis, Charade, 2015. "A Demand Analysis for Fresh Tomatoes in the Dallas/Fort Worth Grocery Market," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196847, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea15:196847
    DOI: 10.22004/ag.econ.196847
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    References listed on IDEAS

    as
    1. Henneberry, Shida Rastegari & Piewthongngam, Kullapapruk & Qiang, Han, 1999. "Consumer Food Safety Concerns And Fresh Produce Consumption," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-16, July.
    2. Girapunthong, Napaporn & VanSickle, John J. & Renwick, Alan W., 2003. "Price Asymmetry In The United States Fresh Tomato Market," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(3), pages 1-9, November.
    3. George, P.S. & King, Gordon A., 1971. "Consumer Demand for Food Commodities in the United States with Projections for 1980," Monographs, University of California, Davis, Giannini Foundation, number 11936, December.
    4. Benaissa Chidmi & Rigoberto A. Lopez, 2007. "Brand-Supermarket Demand for Breakfast Cereals and Retail Competition," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 324-337.
    Full references (including those not matched with items on IDEAS)

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