R. Karina Gallardo

A Comparison Of Choice Experiments And Actual Grocery Store Behavior: An Empirical Application To Seafood Products

In this paper we compare results from an in-store field experiment and a mail survey choice experiment (CE) to investigate CE’s capacity in predicting grocery store market share. For the comparison, we used three seafood products: freshwater prawns, marine shrimp, and lobster. CE estimates were obtained via four econometric models: the conditional logit, the random parameter logit, the heteroskedastic extreme value, and the multinomial probit. We found that the level of control in the grocery store experiment and the choice of econometric model influenced the capacity of CE to predict grocery store market shares.

Quality Differentiation with Flavors: Demand Estimation of Unobserved Attributes

Abstract This article estimates the demand for mint-flavored gum products using grocery store sales data and accounting for consumers’ valuation of quality. Unobserved product attributes, such as flavor quality, are important elements to consider when estimating the demand for gum. The estimation results suggest that gum is an inelastic product. A positive relationship between willingness to pay and unobserved quality was identified, implying that gum industry should be able to command a premium for higher quality mint-flavored products.

Willingness-to-pay for attribute level and variability: the case of Mexican millers' demand for hard red winter wheat.

In-person interviews were carried out with Mexican millers who were administered a conjoint-type survey designed to incorporate uncertainty in attribute levels. Two methods were used to model millers’ risk preferences: a modified mean-variance approach and an explicit expected utility approach. Controlling for variability, Mexican millers are willing to pay premiums for increases in quality factors such as test weight, protein content, falling number, and dough strength/extensibility. We find millers are not particularly sensitive to changes in the variability of quality characteristics. Out-of-sample forecasts suggest the mean-variance model provides an accurate depiction of actual Mexican imports.

Adoption of labor-enhancing technologies by specialty crop producers

Purpose - – The purpose of this paper is twofold, first: to define the profile of adopters of labor-enhancing technologies (e.g. platforms) identifying factors – such as operations size, mix of fruits grown, apple operation location, principal operators socio-demographics – and second: to estimate the efficiency threshold for platform adoption during apple harvesting to be financially feasible considering future increases in farm labor wages. Design/methodology/approach - – The authors conducted a mixed-mode survey in January-February 2010. Data were analyzed using a bivariate probit model, considering that the decision to adopt platforms was related with the orchard planting system. The authors conducted simulation scenarios to estimate the efficiencies – harvest – platforms must achieve in order to be economically feasible. Findings - – In total, 11 percent of the 316 apple operations covered by the survey used platforms. Orchard operations most likely to invest in planar structures are relatively large, produce high-value varieties, use organic systems, and have relatively young and educated operators. Similarly, operations producing high-value fruit such as “Honeycrisp” and controlled or patented varieties and relatively large operations are more likely to invest in platforms. The results of the comparison of the cost of harvesting apples using platforms vs ladders under several production assumptions indicate that platforms must increase labor productivity by at least 13 percent in order to be adopted by the industry. Research limitations/implications - – This study caveat is the lack of inclusion of production and marketing uncertainties in the estimation of future apple harvest costs. Further research to deeper analyze these issues is needed. Practical implications - – The authors present information on the profile of mechanization adopters, so extension educators and engineers could concentrate efforts on them to increase adoption levels. In addition the authors provide a threshold of efficiencies for harvest platforms associated with cost savings compared to manual harvest. Social implications - – Enabling the adoption of mechanization technologies by specialty crop industries would decrease the dependence on labor, decreasing labor uncertainties and facilitating the production of high quality produce to satisfy the needs of consumers. Second, it will end an era of importing poverty, given that the specialty crop industry has long benefited from seasonal migrant workers. It will improve rural American communities to shorten pools of farm workers, giving them access to permanent jobs with higher salaries. Originality/value - – The contribution of this study is to improve understanding of the degree of mechanization, financial feasibility of current existing technologies, and barriers to greater mechanization by the Washington apple industry. Given the similar labor challenges faced, in general, by the US specialty crop agriculture, results could be applicable to the entire industry.

Blueberry Producers’ Attitudes toward Harvest Mechanization for Fresh Market

The availability and cost of agricultural labor is constraining the specialty crop industry throughout the United States. Most soft fruits destined for the fresh market are fragile and are usually hand harvested to maintain optimal quality and postharvest longevity. However, because of labor shortages, machine harvest options are being explored out of necessity. A survey on machine harvest of blueberries (Vaccinium sp.) for fresh market was conducted in 2015 and 2016 in seven U.S. states and one Canadian province. Survey respondents totaled 223 blueberry producers of various production sizes and scope. A majority (61%) indicated that their berries were destined for fresh markets with 33% machine harvested for this purpose. Eighty percent said that they thought fruit quality was the limiting factor for machine-harvested blueberries destined for fresh markets. Many producers had used mechanized harvesters, but their experience varied greatly. Just less than half (47%) used mechanical harvesters for fewer than 5 years. Most respondents indicated that labor was a primary concern, as well as competing markets and weather. New technologies that reduce harvesting constraints, such as improvements to harvest machinery and packing lines, were of interest to most respondents. Forty-five percent stated they would be interested in using a modified harvest-aid platform with handheld shaking devices if it is viable (i.e., fruit quality and picking efficiency is maintained and the practice is cost effective). Overall, the survey showed that blueberry producers have great concerns with labor costs and availability and are open to exploring mechanization as a way to mitigate the need for hand-harvest labor.

Commercialization Mechanisms for New Plant Varieties

Developing and marketing new varieties is essential for the long-term profitability of US crop producers. The ultimate goal of university breeding programs is to release improved plant varieties, either with superior quality or more efficient production management. For certain horticultural products, notably apples, plant breeders have developed several new differentiated varieties that have the capacity to be marketed with premium prices and that can compete on world markets. If these innovations are not commercialized or are commercialized in a suboptimal way, then the benefits of the research are greatly reduced. In this chapter, we use game theoretic analysis and an experimental auction to investigate the effects of contract exclusivity and payment structure on innovator and producer profits from a hypothetical new apple variety.