Product Development, Cost Seasonality, Region Marginalization, and a More Demanding Consumer
AbstractAgricultural production is becoming more like manufacturing in the routinization of processes, the extent to which raw materials are processed, capital intensity, and its emphasis on throughput. Some ascribe the changes to demand-side factors while others look to technological innovations. Emphasizing cost seasonality as a reference indicator for nature's role in agricultural production, this paper develops a simple model that includes both supply and demand sides. We show how cost seasonality can impede product development to meet consumer needs and find that there may be a ceiling level of cost seasonality below which a non-seasonal equilibrium production profile occurs. Price seasonality is decreasing in cost seasonality. An increase in demand for more-processed products induces a shift toward non-seasonal production. Regions with strongly seasonal cost advantages will produce lower-value products while less-seasonal regions will produce higher-value products. If a region with high-cost seasonality has a non-seasonal cost disadvantage, then an increase in demand for processing can reduce the region's competitiveness.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Center for Agricultural and Rural Development (CARD) at Iowa State University in its series Center for Agricultural and Rural Development (CARD) Publications with number 04-wp378.
Date of creation: Nov 2004
Date of revision:
industrialization; lifestyle changes; regional production systems; value added.;
Find related papers by JEL classification:
- D2 - Microeconomics - - Production and Organizations
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
- N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
- Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.