Hostname: page-component-cd9895bd7-gxg78 Total loading time: 0 Render date: 2024-12-27T09:59:17.609Z Has data issue: false hasContentIssue false
  • English
  • Français

Regional Wholesale Price Relationships in the Presence of Counter-Seasonal Imports

Published online by Cambridge University Press:  26 January 2015

Kellie Curry Raper ,
Suzanne Thornsbury  and
Cristobal Aguilar
Kellie Curry Raper
Affiliation:
Agricultural Economics, Oklahoma State University, Stillwater, OK
Suzanne Thornsbury
Affiliation:
Agriculture, Food, and Resource Economics, Michigan State University, East Lansing, MI
Cristobal Aguilar
Affiliation:
Agricultural Cooperative Development International/Volunteers in Overseas Cooperative Assistance (ACDI/VOCA), La Paz, Bolivia
Get access Rights & Permissions [Opens in a new window]

Abstract

Counter-seasonal imports of fresh produce facilitate year-round availability in the U.S. and may impact the seasonal structure of market price relationships. Vector autoregression analysis is used to determine the nature and extent of spatial price relationships among four geographically distinct regions in the U.S. fresh peach wholesale market. We evaluate differences in regional spatial price relationships and find statistical evidence that price relationships among regions are different in periods dominated by regional domestic supplies imports compared with periods when counter-seasonal imports dominate the market.

Keywords

counter-seasonal importsprice analysisregional pricesspatial pricesVARQ1Q11Q13
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 41 , Issue 1 , April 2009 , pp. 271 - 290
Copyright
Copyright © Southern Agricultural Economics Association 2009

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Ardeni, P.G. “Does the Law of One Price Really Hold for Commodity Prices?” American Journal of Agricultural Economics 71(1989):661–69.Google Scholar
Arnade, C, and Pick, D. “Seasonality and Unit Roots: The Demand for Fruits.” Agricultural Economics 18(1998):53–62.CrossRefGoogle Scholar
Arnade, C, Pick, D., and Gehlhar, M. “Testing and Incorporating Seasonal Structures in Demand Models for Fruit.” Agricultural Economics 33(2005):527–32.Google Scholar
Balaban, E., and Kunter, K.. 1996. “Financial Market Efficiency in a Developing Economy: The Turkish Case.” Discussion Paper No:9611, Research Department, The Central Bank of the Republic of Turkey, March 1996.Google Scholar
Barrett, C.B. “Market Analysis Methods: Are Our Enriched Toolkits Well Suited to Enlivened Markets?” American Journal of Agricultural Economics 78(1996):825–29.Google Scholar
Barrett, C.B., and Li, J.R. “Distinguishing Between Equilibrium and Integration in Spatial Price Analysis.” American Journal of Agricultural Economics 84(2002):292–307.CrossRefGoogle Scholar
Branke, H. “Peach Profile.” University of California, Ag Marketing Resource Center, 2003. Internet site: http://www.agrm-c.org/agmrc/cornmodity/fraits/peaches/peachprofile.htm (Accessed March 2, 2007).Google Scholar
California Department of Food and Agriculture. Internet site: http://www.cdfa.ca.gov/ (Accessed March 10, 2007).Google Scholar
Darrat, A.F., and Zhong, M. “On Testing the Random-Walk Hypothesis: A Model-Comparison Approach.” Financial Review 35(2000):105–24.Google Scholar
Day, K.R., Andris, H.L., Klonsky, K.M., and DeMoura, R.L.. Sample Costs to Produce Fresh Market Peaches, July-August harvested, San Joaquin Valley – South, University of California Cooperative Extension, PH-VS-04, 2004.Google Scholar
Donovan, C, Myers, R., Tschirley, D., and Weber, M. “The Effects of Food Aid on Maize Prices in Mozambique.” Food Security, Diversification and Resource Management: Refo-cusing the Role of Agriculture? Peters, G.H. and Von Braun, J. (eds.) Vermont: Ashgate Publishing, 1999.Google Scholar
Fackler, PL., and Goodwin, B.K. “Spatial Price Analysis.” Handbook of Agricultural Economics, Volume 1, Part 2, Marketing, Distribution and Consumers. Gardner, B.L. and Rausser, G.C. (eds.) Elsevier, Science, 2001.Google Scholar
Fresno County California Agricultural Commissioner. “Annual Crop Report 2005.” Internet site: http://www.co.fresno.ca.us/4010/agproto/reports/crop05/2005%20Crop%20Report.pdf.Google Scholar
Fuller, S., Bello, H., and Shafer, C. “Factors Affecting Price of Subtropical Fresh Peach Production: An Analysis of Weekly Wholesale Price in the Spring Season.” Agribusiness 6(1990):401–13.3.0.CO;2-D>CrossRefGoogle Scholar
Ivanov, V. and Kilian, L. “A Practitioner's Guide to Lag Order Selection for VAR Impulse Response Analysis.” Studies in Nonlinear Dynamics & Econometrics 9(2005):1–34.Google Scholar
Jordan, K., and VanSickle, J. “Integration and Behavior in U.S. Winter Market for Fresh Tomatoes.” Journal of Agricultural and Applied Economics 27(1995):127–37.Google Scholar
Kamas, J., McEachern, G.R., Stein, L., and Roe, N.. 1998. “Peach Production in Texas.” Texas A&M University Cooperative Extension Service. Internet site: http://aggie-horticultur-e.tamu.edu/extension/peach/peach.html.Google Scholar
Lence, S., and Falk, B. “Cointegration, Market Integration, and Market Efficiency.” Journal of International Money and Finance 24(2005):873–90.Google Scholar
McNew, K. “Spatial Market Integration: Definition, Theory and Evidence.” Agricultural and Resource Economics Review 25(1996):1–11.Google Scholar
McNew, K., and Fackler, P.L. “Testing Market Equilibrium: Is Cointegration Informative?” Journal of Agricultural and Resource Economics 22(1997):191–207.Google Scholar
National Information System for USDA Regional IPM Centers—United States Department of Agriculture, Cooperative State Research, Education and Extension Service. Internet site: http://www. ipmcenters.org/cropprofiles/ListCropProfiles.cfm?typeorg=crop&USDARegion=National%20Site (Accessed March 10, 2007).Google Scholar
Perouty, J.P., d'Hauteville, F., and Lockshin, L. “The Influence of Wine Attributes on Region of Origin Equity: An Analysis of the Moderating Effect of Consumer's Perceived Expertise.” Agribusiness 22(2006):323–41.Google Scholar
Pindyck, R., and Rubinfeld, D.L.. Econometric Models and Economic Forecasts. The McGraw-Hill Companies, 1997.Google Scholar
Rapsomanikis, G., Hallam, D., and Conforti, P. “Market Integration and Price Transmission in Selected Food and Cash Crop Markets of Developing Countries: Review and Applications.” Commodity Market Review. In: Agricultural Commodity Markets and Trade. New Approaches to Analyzing Market Structure and Instability. Eds., Sarris, A. and Hallam, D../FAO, Rome (Italy). Commodities and Trade Div., 2006, pp. 187–217.Google Scholar
Ravallion, M. “Testing Market Integration.” American Journal of Agricultural Economics 68(1986):102–109.CrossRefGoogle Scholar
Reichers, R., and Hinson, R.A. “Price Relationships Between Regionally Important Fresh Vegetable Markets.” Journal of Food Distribution Research 19,2(1988):45–53.Google Scholar
Sharp, R., and Cooley, W.. 2006. “The Cost of Growing Peaches in Western Colorado.” Internet site: http://www.coopext.colostate.edu/ABM/peaches.pdf (Accessed March 10, 2007).Google Scholar
Tomek, W.G. “Price Behavior in a Declining Terminal Market.” American Journal of Agricultural Economics 62(1980):434–44.Google Scholar
U.S. Census Bureau. USA Trade Online. Foreign Trade Division STAT-USA, 2004. Internet site: http://www.usatradeonline.gov/ (Accessed July 17, 2006).Google Scholar
U.S. Department of Agriculture, Agricultural Marketing Service. 2005 Fruit and Vegetable Market News Website. Internet site: http://marketnews.usda.gov/portal/fv (Accessed July 10, 2006).Google Scholar
U.S. Department of Agriculture, Economic Research Service. Fruit and Tree Nut Yearbook, 2005.Google Scholar
U.S. Department of Agriculture, Economic Research Service. Various Years. Foreign Agricultural Trade of the United States. Internet site: http://www.ers.usda.gov/Data/FATUS/ (Accessed June 20, 2005).Google Scholar
U.S. Department of Agriculture, Economic Research Service. Fruit and Tree Nuts Outlook, 2007. FTS-329, Washington, D.C.Google Scholar
U.S. Department of Agriculture, National Agricultural Statistical Service. 2002 Census of Agriculture. Internet site: http://www.usda.gov/nass/ (Accessed June 20, 2005).Google Scholar
U.S. Department of Agriculture, National Agricultural Statistical Service. Various Years. Agricultural Prices Summary. Internet site: http://usda.mannlib.cornell.edu/MannUsda/viewDocumentlnfo.do? documentID=1003 (Accessed June 25, 2005).Google Scholar
Vickner, S.S., and Davies, S.P. “Estimating Strategic Price Response in a Product-Differentiated Oligopoly: The Case of a Domestic Canned Fruit Industry.” Agribusiness 16(2000):125–30.Google Scholar
Vollrath, T., and Hallahan, C. “Testing the Integration of U.S.-Canadian Meat and Livestock Markets.” Canadian Journal of Agricultural Economics 54(2006):55–79.CrossRefGoogle Scholar
Ward, R.W. “Asymmetry in Retail, Wholesale, and Shipping Point Pricing for Fresh Vegetables.” American Journal of Agricultural Economics 64(1982):205–12.Google Scholar
Williamson, J., Crocker, T., Sherman, W., and Hewitt, T. “Alternative Opportunities for Small Farms: Peach and Nectarine Production Review”. Extension Administration Office, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida. RF-AC018. First Published: June 1987. Revised: June 2004. Internet site: http://edis.ifas.ufl.edu (Accessed March 21, 2007).Google Scholar