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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., 2017. "Economic Consequences for Tree Fruit Intermediaries from Shocks," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 49(4), August.
    • Handle: RePEc:ags:joaaec:355368
    DOI: 10.22004/ag.econ.355368
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    1. Ben C. French & Jim L. Matthews, 1971. "A Supply Response Model for Perennial Crops," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(3), pages 478-490.
    2. 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.
    3. 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.
    4. Price, David W. & Mittelhammer, Ronald C., 1979. "A Matrix Of Demand Elasticities For Fresh Fruit," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 4(01), pages 1-18, July.
    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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    1. repec:ags:aaea22:335762 is not listed on IDEAS
    2. 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.
    3. Shakil, Golam Saroare & Marsh, Thomas L., 2021. "Vertically integrated equilibrium model: A small economy context," 2021 Annual Meeting, August 1-3, Austin, Texas 314050, Agricultural and Applied Economics Association.
    4. Jonathon Siegle & Gregory Astill & Zoë Plakias & Daniel Tregeagle, 2024. "Estimating perennial crop supply response: A methodology literature review," Agricultural Economics, International Association of Agricultural Economists, vol. 55(2), pages 159-180, March.

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    Agribusiness; Crop Production/Industries;

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