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Economic Consequences for Tree Fruit Intermediaries from Shocks

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  • Jiang, Xiaojiao
  • Cassey, Andrew J.
  • Marsh, Thomas L.

Abstract

Motivated by disease outbreaks and trade shocks, a dynamic equilibrium displacement model is calibrated for the U.S. pear industry to simulate welfare from various shocks compared to a baseline. Our contribution is assessing the impact to intermediary packers for fresh fruit and processors for processed fruit in addition to growers and consumers. The processed market is more sensitive than the fresh market generally, and supply shocks induce larger impacts on both markets than trade sanctions. Impacts to intermediaries are on par with growers, indicating that not considering them misstates the distribution of damages to the industry from a shock.

Suggested Citation

  • Jiang, Xiaojiao & Cassey, Andrew J. & Marsh, Thomas L., . "Economic Consequences for Tree Fruit Intermediaries from Shocks," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 49(4).
    • Handle: RePEc:ags:joaaec:355368
    DOI: 10.22004/ag.econ.355368
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    1. George C. Davis & Maria Cristina Espinoza, 1998. "A Unified Approach to Sensitivity Analysis in Equilibrium Displacement Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(4), pages 868-879.
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    4. Paarlberg, Philip L. & Hillberg, Ann & Lee, John G. & Mathews, Kenneth H., Jr., 2008. "Economic Impacts of Foreign Animal Disease," Economic Research Report 56453, United States Department of Agriculture, Economic Research Service.
    5. Joyce J. Wann & Sexton Richard J., 1992. "Imperfect Competition in Multiproduct Food Industries with Application to Pear Processing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(4), pages 980-990.
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    4. Tozer, Peter R. & Marsh, Thomas L., 2018. "Dynamic regional model of the US apple industry: Consequences of supply or demand shocks due to pest or disease outbreaks and control," Agricultural Systems, Elsevier, vol. 164(C), pages 252-263.
    5. Haque, Samiul & Hammami, AbdelMalek & Guan, Zhengfei, 2023. "Curing Citrus Greening: Implications along the Supply Chain," 2023 Annual Meeting, July 23-25, Washington D.C. 335762, Agricultural and Applied Economics Association.

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