A Market-Window Analysis for Crown-Cut Broccoli Produced in Southwest Virginia

This research determines the profitability for farmers of marketing film-wrapped Crown-Cut broccoli in Southwest Virginia. Historical price data was collected in three eastern terminal markets (Atlanta, Baltimore, and Philadelphia) for Crown-Cut and bunched broccoli from October 1998 to January 2005. Cost-of-production budgets were estimated for Crown-Cut broccoli. The economic data was entered into a market window analysis and the profitability of each market was evaluated. The profitability of Crown-Cut broccoli was illustrated by market-window graphics. Market windows were generated using an analysis platform developed by Kalo (1998). The profitability estimates were calculated by posting historical market prices by week in a Microsoft Excel spreadsheet and subtracting corresponding unit costs for transportation and production. Study results show that there is potential profit for producing Crown-Cut broccoli during the first weeks of October. Atlanta proved to have the most profit potential of the three markets studied. Given the frost dates in the area, these production windows favor broccoli production without weather risk. Southwestern Virginia should consider developing Crown-Cut production options: the early open market windows combined with the potential for reducing production costs by double-cropping means that a potential profit opportunity exists.