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An Analysis of Fresh Vegetables in the Dallas-Fort Worth Metropolitan Area

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  • Lopez, Jose A.
  • Peckham, Jared A.

Abstract

Since 1961 world vegetable consumption and production have been increasing steadily at annual average growth rates of 3.24 % and 9.29 % respectively. Tomatoes represent the largest annual world production volume with an average share of 62% followed by carrots (13 %), lettuce (10%), cauliflower (8%), spinach (6%) and onions (2 %). The study estimates the full Almost Ideal Demand System (AIDS) and provides an in-depth analysis of fresh vegetables in the Dallas-Ft. Worth metropolitan area, which is largest market for Northeast Texas producers. The study estimates expenditure and price elasticities using AC Nielsen Homescan consumption data on carrots, cauliflowers, lettuce, onions, spinach, tomatoes, and precut salad mix. It is critical for vegetable growers and agribusinesses to understand the substitution patterns among different types of vegetables as well as current production and consumption trends at the retail level. A discussion about how various types of fresh vegetables perform at the retail level is presented. Several cases of substitutes and complements fresh vegetables were identified. Our disaggregated analysis may help producers better identify products that are highly marketable in the area. Our results may also provide insight in determining which fresh vegetables are most profitable for local producers.

Suggested Citation

  • Lopez, Jose A. & Peckham, Jared A., 2016. "An Analysis of Fresh Vegetables in the Dallas-Fort Worth Metropolitan Area," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229765, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea16:229765
    DOI: 10.22004/ag.econ.229765
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    References listed on IDEAS

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    2. You, Zhikang & Epperson, James E. & Huang, Chung L., 1996. "A Composite System Demand Analysis For Fresh Fruits And Vegetables In The United States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 27(3), pages 1-12, October.
    3. Niu, Luyuan & Wohlgenant, Michael K., 2012. "A Censored Demand System Analysis of Fruits and Vegetables by Different Income Groups Using Micro Data," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 123946, Agricultural and Applied Economics Association.
    4. George, P.S. & King, Gordon A., 1971. "Consumer Demand for Food Commodities in the United States with Projections for 1980," Monographs, University of California, Davis, Giannini Foundation, number 11936, December.
    5. Thompson, Gary D., 2003. "Retail Demand For Greenhouse Tomatoes: Differentiated Fresh Produce," 2003 Annual meeting, July 27-30, Montreal, Canada 21946, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Nzaku, Kilungu & Houston, Jack E., 2009. "Dynamic Estimation of U.S. Demand for Fresh Vegetable Imports," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 52209, Agricultural and Applied Economics Association.
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