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Producer Revenue Effects of Federal Marketing Order Quality Standards

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  • Jesse, Edward V.

Abstract

Most Federal marketing orders for fruits, vegetables, and horticultural specialties authorize setting minimum shipping standards for grades and sizes. In many orders, this is the only type of provision authorized that can influence commodity supplies. This study attempts to separately measure the supply-decreasing and demand-increasing effects of order imposed standards. A positive relationship between quality and demand was found in only 4 of the 17 commodities studied. For 9 other commodities, demand was inelastic in the vicinity of normal seasonal sales, suggesting that standards could be strengthened during years of heavy crops to prop producer revenues.

Suggested Citation

  • Jesse, Edward V., 1981. "Producer Revenue Effects of Federal Marketing Order Quality Standards," Staff Reports 321773, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:321773
    DOI: 10.22004/ag.econ.321773
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    File URL: https://ageconsearch.umn.edu/record/321773/files/AGESS810619.pdf
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    References listed on IDEAS

    as
    1. Foote, Richard J. & Fox, Karl A., 1954. "Analytical Tools for Measuring Demand," Miscellaneous Publications 305832, United States Department of Agriculture, Economic Research Service.
    2. Jesse, Edward V., 1979. "Social Welfare Implications of Federal Marketing Orders for Fruits and Vegetables," Technical Bulletins 157853, United States Department of Agriculture, Economic Research Service.
    3. David W. Price, 1967. "Discarding Low Quality Produce with an Elastic Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 49(3), pages 622-632.
    Full references (including those not matched with items on IDEAS)

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