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Abstract

Excerpts from the report: The Lower Rio Grande Valley of Texas is a major commercial fruit and vegetable producing area made up of Willacy, Cameron, Hidalgo, and Starr Counties. This report discusses pricing efficiency of the market with respect to variations in quality of tomatoes. Pricing efficiency, as defined for this report, is the manner in which shippers adjust margins in response to changes in costs caused by quality variations. The shipping point margin is the difference between the weighted average price paid growers for tomatoes delivered to the packing shed "culls out" and the weighted average f.o.b. price of all tomatoes sold by the shippers.

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