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Processor Demand And Price-Markup Functions For Catfish: A Disaggregated Analysis With Implications For The Off-Flavor Problem

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  • Kinnucan, Henry W.
  • Sindelar, Scott
  • Wineholt, David
  • Hatch, L. Upton

Abstract

Off-flavor in catfish restricts farm marketings 10 to 45% depending on the season. The economic impact on society of this imposed supply restriction depends, in part, on the elasticity of demand for catfish. Econometric estimates based on disaggregated processing plant data indicate an elastic demand at the processor level but an inelastic demand at the farm level. Short-run social welfare gains from the elimination of off-flavor are estimated to equal 12.0% of farm revenues ($10.0 million in 1983). The inelastic demand for catfish at the farm level, however, means that most of the societal gains will accrue to individuals beyond the farm gate. Thus, an economic justification exists for public sector funding of off-flavor research.

Suggested Citation

  • Kinnucan, Henry W. & Sindelar, Scott & Wineholt, David & Hatch, L. Upton, 1988. "Processor Demand And Price-Markup Functions For Catfish: A Disaggregated Analysis With Implications For The Off-Flavor Problem," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 20(2), pages 1-12, December.
    • Handle: RePEc:ags:sojoae:29270
    DOI: 10.22004/ag.econ.29270
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    References listed on IDEAS

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    1. Lynn E. Dellenbarger & E. Jane Luzar & Alvin R. Schupp, 1988. "Household demand for catfish in Louisiana," Agribusiness, John Wiley & Sons, Ltd., vol. 4(5), pages 493-501.
    2. Bruce L. Gardner, 1975. "The Farm-Retail Price Spread in a Competitive Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(3), pages 399-409.
    3. French, Ben C. & King, Gordon A., 1986. "Demand And Price-Markup Functions For Canned Cling Peaches And Fruit Cocktail," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 11(01), pages 1-11, July.
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    5. Kinnucan, Henry & Sullivan, Gregory, 1986. "Monopsonistic Food Processing and Farm Prices: The Case of the West Alabama Catfish Industry," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 18(2), pages 15-24, December.
    6. Raulerson, Richard C. & Trotter, Warren K., 1973. "Demand for Farm-Raised Channel Catfish in Supermarkets: Analysis of a Selected Market," Marketing Research Reports 313732, United States Department of Agriculture, Agricultural Marketing Service, Transportation and Marketing Program.
    7. Henry W. Kinnucan & Olan D. Forker, 1987. "Asymmetry in Farm-Retail Price Transmission for Major Dairy Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 285-292.
    8. Theil, Henri & Shonkwiler, J. S., 1986. "Monte Carlo tests of autocorrelation," Economics Letters, Elsevier, vol. 20(2), pages 157-160.
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    Cited by:

    1. Lambregts, Johannes Adrianus & Griffin, Wade L. & Lacewell, Ronald D. & Davis, James T. & Clary, Gregory M., 1993. "Estimated Costs And Returns For Catfish Farms With Recirculating Ponds Along The Upper Texas Coast," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 25(2), pages 1-12, December.
    2. Kinnucan, Henry W. & Venkateswaran, Meenakshi, 1990. "Effects Of Generic Advertising On Perceptions And Behavior: The Case Of Catfish," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(2), pages 1-15, July.
    3. Henry W. Kinnucan & Maria Thomas, 1997. "Optimal Media Allocation Decisions For Generic Advertisers," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 425-441, January.
    4. Ligeon, Carel & Jolly, Curtis M. & Jackson, John D., 1996. "Evaluation Of The Possible Threat Of Nafta On U.S. Catfish Industry Using A Traditional Import Demand Function," Journal of Food Distribution Research, Food Distribution Research Society, vol. 27(2), pages 1-9, July.

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