PROCESSOR DEMAND AND PRICE-MARKUP FUNCTIONS FOR CATFISH: A DISAGGREGATED ANALYSIS WITH IMPLICATIONS FOR THE OFF-FLAVOR PROBLEM

Off-flavor in catfish restricts farm marketings 10 to 45% depending on the season. The economic impact on society of this imposed supply restriction depends, in part, on the elasticity of demand for catfish. Econometric estimates based on disaggregated processing plant data indicate an elastic demand at the processor level but an inelastic demand at the farm level. Short-run social welfare gains from the elimination of off-flavor are estimated to equal 12.0% of farm revenues ($10.0 million in 1983). The inelastic demand for catfish at the farm level, however, means that most of the societal gains will accrue to individuals beyond the farm gate. Thus, an economic justification exists for public sector funding of off-flavor research.


Issue Date:
1988-12
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/29270
PURL Identifier:
http://purl.umn.edu/29270
Published in:
Southern Journal of Agricultural Economics, Volume 20, Number 2
Page range:
81-92
Total Pages:
12




 Record created 2017-04-01, last modified 2018-01-22

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)