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Marketing Order Suspensions And Fresh Lemon Retail-Fob Margins

  • Richards, Timothy J.
  • Kagan, Albert
  • Mischen, Pamela
  • Adu-Asamoah, Richard

In August 1994, the Secretary of Agriculture announced the termination of the marketing order and the association flow-to-market, or prorate, controls for fresh California and Arizona (CA/AZ) lemons. Lemon growers and handlers have expressed concern over the impact of this decision on retail-FOB margins. This study presents an econometric model of fresh lemon marketing margins that tests for the presence of buyer and seller market power during previous periods of marketing order suspension. The results show that buyer and, to a lesser extent, seller market power cause retail-FOB margins to widen during periods of prorate suspension.

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File URL: http://purl.umn.edu/15114
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Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 28 (1996)
Issue (Month): 02 (December)
Pages:

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Handle: RePEc:ags:joaaec:15114
Contact details of provider: Web page: http://www.saea.org/jaae/jaae.htm

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  1. Schroeter, John R., 1988. "Estimating the Degree of Market Power in the Beef Packing Industry," Staff General Research Papers 11114, Iowa State University, Department of Economics.
  2. Schroeter, John R. & Azzam, Azzeddine M., 1991. "Marketing Margins, Market Power, and Price Uncertainty," Staff General Research Papers 11110, Iowa State University, Department of Economics.
  3. Daniel H. Pick & Jeffrey Karrenbrock & Hoy F. Carman, 1990. "Price asymmetry and marketing margin behavior: An example for California-Arizona citrus," Agribusiness, John Wiley & Sons, Ltd., vol. 6(1), pages 75-84.
  4. Shalit, Haim & Yitzhaki, Shlomo, 2002. " Estimating Beta," Review of Quantitative Finance and Accounting, Springer, vol. 18(2), pages 95-118, March.
  5. Carman, Hoy F., 1981. "Income Tax Reform And California Orchard Development," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 6(02), December.
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