Grocery Retailer Behavior in Perishable Fresh Produce Procurement
This study examines supermarket retailer behavior in the procurement of iceberg lettuce from California and Arizona, vine-ripe and mature-green tomatoes from California, and mature-green tomatoes from Florida. The analysis relies upon both a reduced-form specification of farm-retail price spreads and a structural model of procurement for a perishable commodity with inelastic supply. The evidence supports a conclusion that buyers have been able to exercise oligopsony power in procuring iceberg lettuce from grower-shippers in California and Arizona. The evidence regarding buyer market power is more mixed for fresh tomatoes. The apparent success of the Florida mature-green tomato industry in enforcing a price floor and capturing a significant share of the surplus in excess of the price floor demonstrates the potential benefits to producers from coordinated behavior.
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Volume (Year): 3 (2005)
Issue (Month): 1 (February)
Pages: 1-23
| Handle: | RePEc:bpj:bjafio:v:3:y:2005:i:1:n:6 |
| Contact details of provider: | Web page: http://www.degruyter.com
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| Order Information: | Web: http://www.degruyter.com/view/j/jafio |
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