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Structural Change in Demand During Early and Peak Season for Kentucky Produce Auctions

Author

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  • Butler, Alex
  • Bechu, Martin
  • Woods, Timothy
  • Reed, Michael

Abstract

Kentucky produce auctions play a significant role in the local and regional food systems acting as horticulture aggregators for producers of various specialty crops. Similar auctions have continued to start or expand throughout the Mid-South. The prices, quality, and quantity of the products distributed through these auctions vary throughout the marketing season and, subsequently, different kinds of buyers are attracted to bid. This study examines the evidence for structural market differences between early season, when prices are systematically higher, and peak season that can arise from different buyer needs relating to volume and distribution in local versus more regional outlets. Price flexibilities are often thought to be different throughout a season, but analysis of these data has been extremely limited. Price and quantity records from two of the larger Kentucky auctions, the Fairview and Lincoln County Produce Auction are analyzed for seven different produce commodities during early and peak season. Four years of data are evaluated using structural difference regression equations to test for early versus peak temporal differences as well as specific auction effects. This information can assist produce auctions to establish market coordination between producers with season extension operations and variously scaled market buyers.

Suggested Citation

  • Butler, Alex & Bechu, Martin & Woods, Timothy & Reed, Michael, 2018. "Structural Change in Demand During Early and Peak Season for Kentucky Produce Auctions," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266716, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea18:266716
    DOI: 10.22004/ag.econ.266716
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    References listed on IDEAS

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    1. Blaine, Thomas W. & James, Randall E. & James, Barbara H., 1997. "The Effects Of A Wholesale Fruit And Vegetable Auction On Produce Marketing And Distribution," Journal of Food Distribution Research, Food Distribution Research Society, vol. 28(1), pages 1-64, February.
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    Keywords

    Demand and Price Analysis;

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