IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v78y1996i3p647-655.html
   My bibliography  Save this article

Supply and Demand Factors for Organic Produce

Author

Listed:
  • Timothy A. Park
  • Luanne Lohr

Abstract

Although the organic produce industry is growing dramatically, little is known about market structure. We estimate a system of reduced-form equations to evaluate supply and demand factors that influence equilibrium farm price and quantity in wholesale markets for organic broccoli, carrots, and lettuce. In the long run, demand factors dominate supply factors. Reduced wholesaling costs, increased margins by which organic wholesale price exceeds nonorganic price, and higher consumer income stimulate both farm price and output. Increasing the nonorganic farm price decreases equilibrium quantity of organics. Market expansion strategies should target consumers and wholesalers. Copyright 1996, Oxford University Press.

Suggested Citation

  • Timothy A. Park & Luanne Lohr, 1996. "Supply and Demand Factors for Organic Produce," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 647-655.
  • Handle: RePEc:oup:ajagec:v:78:y:1996:i:3:p:647-655
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1243282
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Götze, Franziska & Mann, Stefan & Ferjani, Ali & Kohler, Andreas & Heckelei, Thomas, 2015. "A Hedonic Approach Towards Explaining Market Shares of Organic Food - Evidence from Swiss Household Data," 55th Annual Conference, Giessen, Germany, September 23-25, 2015 209204, German Association of Agricultural Economists (GEWISOLA).
    2. Thompson, Gary D. & Wilson, Paul N., 1999. "Market Demands For Bagged, Refrigerated Salads," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(02), December.
    3. Gentile, Natacha & Rodríguez, Elsa Mirta M., 2006. "El consumo de alimentos orgánicos: aplicación de un modelo logit multinomial a la elección del canal de compra," Nülan. Deposited Documents 1065, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    4. Mélanie Jaeck & Robert Lifran & Hubert Stahn, 2012. "Emergence of Organic Farming under Imperfect Competition: Economic Conditions and Incentives," Working Papers halshs-00793671, HAL.
    5. Mélanie Jaeck & Robert Lifran & Hubert Stahn, 2012. "Emergence of Organic Farming under Imperfect Competition," AMSE Working Papers 1239, Aix-Marseille School of Economics, Marseille, France.
    6. Connolly, Cristina & Klaiber, H. Allen, 2012. "Are Consumers Willing to Pay for Organic When the Food is Already Local?," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124364, Agricultural and Applied Economics Association.
    7. Volpe, Richard J., III, 2006. "Exploring the Potential Effects of Organic Production on Contracting in American Agribusiness," 2006 Annual meeting, July 23-26, Long Beach, CA 21086, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Kim, John Moo, 2005. "Sustainable Farm Development in the Republic of Korea in a Global Economy," 15th Congress, Campinas SP, Brazil, August 14-19, 2005 24296, International Farm Management Association.
    9. Steven C. Blank & Gary D. Thompson, 2004. "Can/Should/Will A Niche Become the Norm? Organic Agriculture's Short Past and Long Future," Contemporary Economic Policy, Western Economic Association International, vol. 22(4), pages 483-503, October.
    10. Park, Timothy A. & Gubanova, Tatiana & Lohr, Luanne & Escalante, Cesar L., 2005. "Forecasting Organic Food Prices: Testing and Evaluating Conditional Predictive Ability," 2005 Annual meeting, July 24-27, Providence, RI 19412, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Rodríguez, Elsa Mirta M. & Gentile, Natacha & Lupín, Beatriz & Garrido, Laura, 2006. "El mercado interno de productos orgánicos: actitudes de los consumidores argentinos," Nülan. Deposited Documents 1064, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    12. Timothy PARK & Luanne LOHR, 1996. "Wholesaler Markup Decisions Under Demand Uncertainty," Faculty Series 96-13, University of Georgia, Department of Agricultural and Applied Economics.
    13. Nadine Würriehausen & Rico Ihle & Sebastian Lakner, 2015. "Price relationships between qualitatively differentiated agricultural products: organic and conventional wheat in Germany," Agricultural Economics, International Association of Agricultural Economists, vol. 46(2), pages 195-209, March.
    14. van Ravenswaay, Eileen O. & Blend, Jeffrey R., 1997. "Using Ecolabeling To Encourage Adoption Of Innovative Environmental Technologies In Agriculture," Staff Papers 11657, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    15. Gubanova, Tatiana & Lohr, Luanne & Park, Timothy A., 2005. "Forecasting Organic Food Prices: Emerging Methods for Testing and Evaluating Conditional Predictive Ability," 2005 Conference, April 18-19, 2005, St. Louis, Missouri 19045, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    16. Gabrielyan, Gnel & Marsh, Thomas L., 2012. "Domestic and Export Price Formation of U.S. Hops," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124722, Agricultural and Applied Economics Association.
    17. McFadden, Jonathan R. & Huffman, Wallace E., 2017. "Willingness-to-pay for natural, organic, and conventional foods: The effects of information and meaningful labels," Food Policy, Elsevier, vol. 68(C), pages 214-232.
    18. Baker, Gregory A., 1999. "Consumer Preferences For Food Safety Attributes In Fresh Apples: Market Segments, Consumer Characteristics, And Marketing Opportunities," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(01), July.
    19. Bohorova, Svetlana & Scrimgeour, Frank G., 2000. "Evaluating The Potential Productivity Gains Associated With Biotechnological Improvement: The Case Of Kiwifruit In New Zealand," Proceedings:Transitions in Agbiotech: Economics of Strategy and Policy, June 24-25, 1999, Washington, D.C. 25995, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    20. Tondel, Fabien & Woods, Timothy A., 2006. "Supply Chain Management and the Changing Structure of U.S. Organic Produce," 2006 Annual meeting, July 23-26, Long Beach, CA 21435, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:78:y:1996:i:3:p:647-655. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/aaeaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.