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Pesticide residues and vertical integration in Florida strawberries and tomatoes

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  • Richard L. Kilmer

    (Department of Food and Resource Economics, University of Florida in Gainesville, Gainesville, Florida 32611. E-mail: kilmer@ufl.edu; madangrimo@aol.com; stevens@fred.ifas.ufl.edu)

  • Anouk M. Andre

    (Department of Food and Resource Economics, University of Florida in Gainesville, Gainesville, Florida 32611. E-mail: kilmer@ufl.edu; madangrimo@aol.com; stevens@fred.ifas.ufl.edu)

  • Thomas J. Stevens

    (Department of Food and Resource Economics, University of Florida in Gainesville, Gainesville, Florida 32611. E-mail: kilmer@ufl.edu; madangrimo@aol.com; stevens@fred.ifas.ufl.edu)

Abstract

Government regulations and consumer concern about pesticide residues in food may increase the costs of production and marketing for producers and processors associated with food safety risks. Vertical coordination is an economic response for mitigating the costs associated with uncertain pesticide residue levels. Data from a survey of Florida strawberry and tomato growers were used to test the hypothesis that vertical integration is associated with a lower mean and variance of pesticide residues. The results confirm a significant negative relationship between vertical integration and fungicide and insecticide residues in Florida strawberries and insecticides in Florida tomatoes. However, fungicides in tomatoes had the opposite effect. [Econ-Lit citations: L220, L660] © 2001 John Wiley & Sons, Inc.

Suggested Citation

  • Richard L. Kilmer & Anouk M. Andre & Thomas J. Stevens, 2001. "Pesticide residues and vertical integration in Florida strawberries and tomatoes," Agribusiness, John Wiley & Sons, Ltd., vol. 17(2), pages 213-226.
  • Handle: RePEc:wly:agribz:v:17:y:2001:i:2:p:213-226 DOI: 10.1002/agr.1012
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    References listed on IDEAS

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    1. David A. Hennessy, 1996. "Information Asymmetry as a Reason for Food Industry Vertical Integration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 1034-1043.
    2. Misra, Sukant K. & Huang, Chung L. & Ott, Stephen L., 1991. "Consumer Willingness To Pay For Pesticide-Free Fresh Produce," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(02), December.
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    Cited by:

    1. Cohen, Jeffrey P. & Paul, Catherine J. Morrison, 2005. "Agglomeration economies and industry location decisions: the impacts of spatial and industrial spillovers," Regional Science and Urban Economics, Elsevier, vol. 35(3), pages 215-237, May.
    2. Hennessy, David A. & Lien, Donald, 2003. "Ledger Provision in Hog Marketing Contracts," Staff General Research Papers Archive 10645, Iowa State University, Department of Economics.
    3. Naiquan Sang & Randy Stringer, 2003. "Food Safety Concerns and Changing Procurement Arrangements by Food Processors: A Conjoint Analysis," School of Economics Working Papers 2003-02, University of Adelaide, School of Economics.

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