Stanley M. Fletcher

Peanut price transmission asymmetry in peanut butter

Price transmission asymmetry for peanuts used in peanut butter was examined using monthly data from 1984 to 1992. Results show an incomplete price passthrough from the wholesale to the retail level. Furthermore, the results indicate that the initial price response of peanut butter price to a reduction in peanut prices occurs later than the response to an increase in peanut prices. The price transmission is asymmetric in the short-run but symmetric in the long-run.

NUTRITION CONSIDERATIONS IN FOOD SELECTION

The importance of nutrition consideration to households in food selection is instrumental in the development of information programs to promote public health and to market healthy food. Using a national telephone survey of 2880 U.S. households, this study examines the role and influence of socio-economic characteristics and lifestyle on a household meal planners consideration of four dietary components in food selection. Household income, children in households, geographic location, and gender, age, education, and lifestyle of meal planners affected the consideration of dietary components in food selection. The results provide a basis for developing education programs that focus on the particular dietary considerations of identified demographic subgroups.

Producer Attitudes Toward Peanut Market Alternatives: An Application of Multivariate Probit Joint Estimation

Attitudes of peanut producers toward different market alternatives were analyzed assuming the absence of the government support program. A multivariate probit (joint estimation) model for ungrouped data was utilized to ascertain profiles of producers favoring private treaty markets and proposed organized markets. The joint estimation model allows for and measures correlation among market alternatives for greater accuracy in profile analysis. The analysis suggests considerable support for all three of the proposed organized markets. However, choice of alternatives should be considered by a group of potential traders selected on the basis of the profile analysis.

Textile Manufacturers' Market Valuation of Cotton Fiber Attributes

This study provides an analysis of the price-quality relationships of U.S. cotton using primary data collected from textile manufacturers, the end users of fiber. Hedonic prices of fiber attributes are estimated for three production regions - West, South Central, and South - over the 1992-95 study period. Results indicate that cotton price is determined by quality attributes and nonquality factors in the end-use market. There are similarities and differences in valuation of fiber attributes based on region of origin of the cotton.

The Determinants of Food Stamp Program Participation

The Food Stamp Act of 1964 (with subsequent amendments) charges the U.S. Department of Agriculture with extending the benefits of the program to all households willing and eligible to participate. This duty was reinforced by a federal court ruling in 1975 (Beckel and MacDonald; Bennett et al. vs. Butz et al.).Because of the importance of the Food Stamp Program (FSP), numerous studies have been conducted to gauge its intended effectiveness. Areas of study have included nutritional benefits of the program, impact on food expenditures, identification of ways to improve the rate of program participation, and identification of socioeconomic characteristics that may be important indicators of participation or nonparticipation in the program (for example, see Davis and Neenan; Lane; Neenan and Davis 1977, 1978; Salathe; Scearce et al.; Smith and Rowe; West; USDA, 1976, 1978).

Producer Attitudes toward Multicommodity Electronic Marketing

The application of electronics to the marketing of agricultural commodities increased dramatically in the 1970s. A major justification for it was to increase efficiency. Henderson, Shrader, and Turner attributed this increase in efficiency to being able to separate negotiation of trades from the physical transfer of commodities. While many marketsgrain elevators, livestock auctions, terminal markets-traditionally perform these functions simultaneously, electronic marketing can divide them through centralizing negotiation of trades and decentralizing movement of products (Henderson, Shrader, Turner). Research suggests that electronic marketing can increase both pricing efficiency (Helmreich, Epperson, Huang; Henderson, Shrader, Turner; Holder) and operational efficiency (Engleman, Holder, Paul; Glazner and Sporleder). Sufficient trader interest is one of several conditions crucial to the success of electronic marketing (Henderson, Shrader, Turner). As Russell has pointed out, investigation of trader attitudes is also important when an electronic marketing system is designed. The objective of this note is to analyze factors hypothesized to affect producer attitudes toward an electronic market of multiple commodities.

Interfiber Competition In Textile Mills Over Time

Cotton and synthetic fiber competition in textile mills between 1961-1990 was examined using a time-varying parameter regression model. Results indicate that the structure of demand for cotton is not stable and cottons share responses to changes in the prices of cotton and synthetic fiber vary over time. Cotton and synthetic fiber competition in textile mill use is essentially between cotton and noncellulosic fiber. Cellulosic fiver is not a cotton competitor.

European Union Import Demand for In-Shell Peanuts

This research estimates import demand elasticities for in-shell peanuts in the European Union from four different sources: China, the United States, South America, and Africa. The null hypothesis of aggregation over product sources is rejected at conventional levels of significance suggesting that peanuts from different sources are differentiated by EU consumers which might attributed to their different quality characteristics. Conditional expenditure elasticities for U.S. in-shell peanuts are larger than expenditure elasticities for Latin American, Chinese and African peanuts.

An Analysis of Latin American Peanut Trade

The U.S. export share in the world peanut market has decreased due to heavy competition. In this paper, the Latin American peanut industry is modeled using seemingly unrelated regression (SUR). Based on these estimations, a scenario analysis was conducted. The results show that the Latin American demand is not affected dramatically by either domestic of world price shocks. The effects of price changes on net trade are noticeable. However, the world price does not significantly affect the Latin American peanut supply. The results imply that Latin American peanut farmers are more sensitive to changes in domestic prices than world price changes.

Southeastern Peanut-Production Cost Efficiency Under the Quota System: Implications for the Farm-Level Impacts of the 2002 Farm Act

In the article, stochastic frontier analysis of peanut-production efficiency in the Southeastern region of the United States is conducted with a view of assessing the likely farm-level impacts of the 2002 Farm Act. Results indicate that , although quota ownership did not significantly impact inefficiency, it is likely that limitations on the quota’s transferability to areas with better growing conditions were a significant cause of inefficiency. The acreage shifts and improved yields following the passage of the 2002 Farm Act support this conclusion. Certain farm characteristics, such as farm size and operator’s education and age, were also important for efficiency.