MARKETING ORDER SUSPENSIONS AND FRESH LEMON RETAIL-FOB MARGINS

In August 1994, the Secretary of Agriculture announced the termination of the marketing order and the association flow-to-market, or prorate, controls for fresh California and Arizona (CA/AZ) lemons. Lemon growers and handlers have expressed concern over the impact of this decision on retail-FOB margins. This study presents an econometric model of fresh lemon marketing margins that tests for the presence of buyer and seller market power during previous periods of marketing order suspension. The results show that buyer and, to a lesser extent, seller market power cause retail-FOB margins to widen during periods of prorate suspension.


Subject(s):
Issue Date:
1996-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/15114
Published in:
Journal of Agricultural and Applied Economics, Volume 28, Number 2
Page range:
263-277
Total Pages:
15




 Record created 2017-04-01, last modified 2017-08-23

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