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Certification And Supply Response In The Organic Lettuce Market

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  • Lohr, Luanne
  • Park, Timothy A.

Abstract

The impact of supply relationships and certification programs on the organic lettuce market is examined using an integrated partial adjustment and asymmetric supply response model. Costs associated with organic certification, production, and marketing have not restricted producersÂ’' abilities to respond to price signals. Organic growers allocate output between certified and noncertified markets in response to changing price premiums. Estimates of short-run supply elasticities indicate that organic lettuce growers are more responsive to price changes than producers of nonorganic lettuce. Long-run elasticity has increased since 1988, a change that coincides with the market entry of larger producers.

Suggested Citation

  • Lohr, Luanne & Park, Timothy A., 1992. "Certification And Supply Response In The Organic Lettuce Market," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(02), December.
  • Handle: RePEc:ags:jlaare:30948
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    File URL: http://purl.umn.edu/30948
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    References listed on IDEAS

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    1. Ravenswaay, Eileen O. van & Hoehn, John P., 1991. "Consumer Willingness to Pay for Reducing Pesticide Residues in Food: Results of a Nationwide Survey," Staff Papers 201044, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Knoblauch, Wayne A. & Brown, Rebecca & Braster, Martin, 1990. "Organic Field Crop Production A Review of the Economic Literature," Research Bulletins 183295, Cornell University, Department of Applied Economics and Management.
    3. Dermot J. Hayes & Thomas I. Wahl & Gary W. Williams, 1990. "Testing Restrictions on a Model of Japanese Meat Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 556-566.
    4. LaFrance, Jeffrey T. & Burt, Oscar R., 1983. "A Modified Partial Adjustment Model Of Aggregate U.S. Agricultural Supply," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 8(01), July.
    5. Godfrey, Leslie G, 1978. "Testing against General Autoregressive and Moving Average Error Models When the Regressors Include Lagged Dependent Variables," Econometrica, Econometric Society, vol. 46(6), pages 1293-1301, November.
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    Cited by:

    1. Steven C. Blank & Gary D. Thompson, 2004. "Can/Should/Will A Niche Become the Norm? Organic Agriculture's Short Past and Long Future," Contemporary Economic Policy, Western Economic Association International, vol. 22(4), pages 483-503, October.

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