Plum production is steadily becoming big business in Michigan. The literature shows that the industry contributes a total value of more than one million dollars annually to Michigan growers. The industry is relatively young, but so far it has demonstrated an ability for substantial growth. Its growing importance plus a lack of economic information indicates that economic research is needed for this industry. This study seeks to examine a number of factors relative to the industry. First the present state of the industry will be examined along with a comparison with the other competing areas, specifically Washington, Oregon, and Idaho. Production costs for Michigan and Oregon will be examined and compared. A short insight will be given into the California plum industry, mostly because of its potential as a source of future competition. A second objective of this study is an attempt to analyze the Michigan plum price situation and to develop a forecast equation for Michigan plum price. The third objective of this study is an attempt to analyze the market potential of the Michigan plum industry. In this context an attempt will be made to suggest various ways in which the market may be expanded and made more responsive to the needs of producers and consumers alike. Finally, an attempt will be made to examine the past performance of the industry, to see what factors, if any might have impeded performance in the past.