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Assessment of a Marketing Order Prorate Suspension: A Study of California - Arizona Naval Oranges

Author

Listed:
  • Powers, Nicholas J.
  • Zepp, Glenn A.
  • Hoff, Frederic L.

Abstract

The market for California-Arizona navel oranges performed in about the same way during the 1984/85 season after the handler prorate was suspended as during comparable prorated periods. The industry uses a handler prorate to regulate the weekly quantity of fresh navel oranges shipped to the domestic market by placing an upper limit on the quantity each handler can sell. The prorate was suspended when fresh navel orange prices exceeded parity level during the 1984/85 season. Only minor differences existed between the prorate suspension and prorated periods in the stability of shipments and prices. Higher prices in the 1984/85 season were due to relatively small U.S. fresh orange supplies during the winter. Handler marketing practices changed very little during the partial season with a prorate suspension. The shortrun effects of a full-season prorate suspension would be lower grower prices, greater fresh use, and less processing use of available supplies.

Suggested Citation

  • Powers, Nicholas J. & Zepp, Glenn A. & Hoff, Frederic L., 1986. "Assessment of a Marketing Order Prorate Suspension: A Study of California - Arizona Naval Oranges," Agricultural Economic Reports 308010, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerser:308010
    DOI: 10.22004/ag.econ.308010
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    Citations

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    Cited by:

    1. Hoy F. Carman & Daniel H. Pick, 1988. "Marketing California-Arizona lemons without marketing order shipment controls," Agribusiness, John Wiley & Sons, Ltd., vol. 4(3), pages 245-259.
    2. Charles C. Lyon & Gary D. Thompson & Roger Fox, 1989. "Price spreads for California-Arizona navel oranges during and after the 1985 prorate suspension," Agribusiness, John Wiley & Sons, Ltd., vol. 5(6), pages 573-595.
    3. Richards, Timothy J. & Kagan, Albert & Mischen, Pamela & Adu-Asamoah, Richard, 1996. "Marketing Order Suspensions And Fresh Lemon Retail-Fob Margins," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(2), pages 1-15, December.

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