IDEAS home Printed from https://ideas.repec.org/p/ags/uwfswp/201522.html
   My bibliography  Save this paper

Demand for Organic and Conventional Potatoes

Author

Listed:
  • Hsieh, Ming- Feng
  • Mitchell, Paul D.
  • Stiegert, Kyle W.

Abstract

We investigate pricing and demand issues for four fresh potato categories (russet, red, white, and minor colored), organic fresh potatoes, and two processed potato categories (frozen/refrigerated and dehydrated) using a nonlinear generalized almost ideal demand system (GAIDS) that is closed under unit scaling (CUUS). We identify five major findings. First, we found little evidence for potato demand differences among the four U.S. regions in our study (east, west, north, and south). Second, increased consumer preferences for organic food consumption have caused price declines for red, russet and minor colored potatoes while organic potato prices rose significantly. Third, white potatoes emerged from the study as apparently the non-organic category most able to compete in an increasingly organicallyoriented market. Fourth, potatoes as an aggregate commodity are inferior good, with perhaps the exception being the minor colored potatoes. Fifth, the potato market competes with other carbohydrate groups. In particular, we find strong statistical support that lower bread or frozen vegetables prices implying reduced system expenditures on potatoes and for dehydrated potato demand being sensitive to competing carbohydrate prices.

Suggested Citation

  • Hsieh, Ming- Feng & Mitchell, Paul D. & Stiegert, Kyle W., 2007. "Demand for Organic and Conventional Potatoes," Working Papers 201522, University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group.
    • Handle: RePEc:ags:uwfswp:201522
    DOI: 10.22004/ag.econ.201522
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/201522/files/wp2007-01.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.201522?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Brian W. Gould, 2003. "An Empirical Assessment of Endogeneity Issues in Demand Analysis for Differentiated Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 605-617.
    2. X. M. Gao & Timothy Richards & Albert Kagan, 1997. "A latent variable model of consumer taste determination and taste change for complex carbohydrates," Applied Economics, Taylor & Francis Journals, vol. 29(12), pages 1643-1654.
    3. Bollino, Carlo Andrea, 1987. "Gaids: a generalised version of the almost ideal demand system," Economics Letters, Elsevier, vol. 23(2), pages 199-202.
    4. Wyatt Thompson, 2004. "Using Elasticities from an Almost Ideal Demand System? Watch Out for Group Expenditure!," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 1108-1116.
    5. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762.
    6. Richards, T.J. & Kagan, A. & Gao, X.M., 1997. "Factors Influencing Changes in Potato and Potato Substitute Demand," Agricultural and Resource Economics Review, Cambridge University Press, vol. 26(1), pages 52-66, April.
    7. Richards, Timothy J. & Kagan, Albert & Gao, Xiaoming, 1997. "Factors Influencing Changes In Potato And Potato Substitute Demand," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(1), pages 1-15, April.
    8. Alston, Julian M. & Chalfant, James A. & Piggott, Nicholas E., 2001. "Incorporating demand shifters in the Almost Ideal demand system," Economics Letters, Elsevier, vol. 70(1), pages 73-78, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ming-Feng Hsieh & Paul D. Mitchell & Kyle W. Stiegert, 2009. "Potato demand in an increasingly organic marketplace," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 369-394.
    2. Bo Xiong & Daniel Sumner & William Matthews, 2014. "A new market for an old food: the U.S. demand for olive oil," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 107-118, November.
    3. Shiptsova, Rimma & Goodwin, Harold L., Jr. & Holcomb, Rodney B., 2004. "Household Expenditure Patterns for Carbohydrate Sources in Russia," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(2), pages 1-12, August.
    4. Hovhannisyan, Vardges & Bozic, Marin, 2014. "On Price Endogeneity in the Analysis of Food Demand in China," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169767, Agricultural and Applied Economics Association.
    5. Zhihao Zheng & Shida Rastegari Henneberry, 2009. "An Analysis of Food Demand in China: A Case Study of Urban Households in Jiangsu Province," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(4), pages 873-893.
    6. Hovhannisyan, Vardges & Gould, Brian W., 2010. "Quantifying the Structure of Food Demand in China Using a Generalized Quadratic AIDS Specification," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56422, Southern Agricultural Economics Association.
    7. Lichtenberg, Erik & Strand, Ivar E., Jr., 2000. "Joint Adoption Of Multiple Technologies: A Dual, Latent Demand Approach," Working Papers 28566, University of Maryland, Department of Agricultural and Resource Economics.
    8. Marsh, Thomas L. & Piggott, Nicholas E., 2013. "Measuring Pre-Commited Quantities Through Consumer Price Formation," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152165, Australian Agricultural and Resource Economics Society.
    9. Vardges Hovhannisyan & Brian W. Gould, 2011. "Quantifying the structure of food demand in China: An econometric approach," Agricultural Economics, International Association of Agricultural Economists, vol. 42, pages 1-18, November.
    10. Hovhannisyan, Vardges & Bozic, Marin, 2013. "On Price Endogeneity in the Analysis of Food Demand in China," Staff Papers 159771, University of Minnesota, Department of Applied Economics.
    11. repec:ags:usao13:148045 is not listed on IDEAS
    12. James W. Mjelde & Kannika Duangnate, 2023. "Overview of Committed Quantities in Commodity Demand Analysis with a Focus on Energy," Energies, MDPI, vol. 16(11), pages 1-17, May.
    13. Hine, Susan E. & Loureiro, Maria L. & Meyer, Susan E., 2001. "Marketing Colorado Potatoes As A Value-Added Product: A Case Study," Journal of Food Distribution Research, Food Distribution Research Society, vol. 32(3), pages 1-9, November.
    14. Rowland, Christopher S. & Mjelde, James W. & Dharmasena, Senarath, 2017. "Policy implications of considering pre-commitments in U.S. aggregate energy demand system," Energy Policy, Elsevier, vol. 102(C), pages 406-413.
    15. Hovhannisyan, Vardges & Shanoyan, Aleksan, 2018. "An Empirical Analysis Of Welfare Consequences Of Rising Food Prices In Urban China: The Easi Approach," 2018 Annual Meeting, August 5-7, Washington, D.C. 273987, Agricultural and Applied Economics Association.
    16. Baldwin, Katherine L. & Jones, Keithly G., 2012. "U.S. Citrus Import Demand: Seasonality and Substitution," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119741, Southern Agricultural Economics Association.
    17. Vardges Hovhannisyan & Marin Bozic, 2017. "Price Endogeneity and Food Demand in Urban China," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(2), pages 386-406, June.
    18. Simona Bigerna and Carlo Andrea Bollino, 2015. "A System Of Hourly Demand in the Italian Electricity Market," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    19. Zheng, Yuqing & Kaiser, Harry M., 2008. "Advertising and U.S. Nonalcoholic Beverage Demand," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 37(2), pages 1-13.
    20. Ghazaryan, Armen & Bonanno, Alessandro & Carlson, Andrea, 2023. "I Say Milk, You Say Mylk. Demand Separability in a Broadened Milk Category," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(2), May.
    21. Lakkakula, Prithviraj & Schmitz, Andrew & Ripplinger, David, 2016. "U.S. Sweetener Demand Analysis: A QUAIDS Model Application," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-16, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uwfswp:201522. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/dauwius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.