Todd M. Schmit

Evaluating Marketing Channel Options for Small-Scale Fruit and Vegetable Producers

An investigation of the relative costs and benefits of marketing channels used by typical smallscale diversified vegetable crop producers is conducted. Using case study evidence from four small farms in Central New York, this study compares the performance of wholesale and direct marketing channels, including how the factors of risk, owner and paid labor, price, lifestyle preferences, and sales volume interact to impact optimal market channel selection. Given the highly perishable nature of the crops grown, along with the risks and potential sales volume of particular channels, a combination of different marketing channels is needed to maximize overall firm performance. Accordingly, a ranking system is developed to summarize the major firm-specific factors across channels and to prioritize those channels with the greatest opportunity for success based on individual firm preferences.

Consumer valuation of environmentally friendly production practices in wines considering asymmetric information and sensory effects

Agricultural producers and food marketers are increasingly responding to environmentally friendly cues from consumers, even though privately appropriated values associated with a range of food products commonly rank above their public-good counterparts. Wine can be considered an ideal product to examine these issues given consumers’ highly subjective sensory preferences towards wine, and a winegrape production process that is relatively intensive in the use of chemical inputs for the control of disease and infection. Semi-dry Riesling wines made from field research trials following environmentally friendly canopy management practices were utilised in a lab experiment to better understand preferences for environmental attributes in wine. A combined sensory and monetary evaluation framework explicitly considered asymmetric order effects. Empirical results revealed that sensory effects dominate extrinsic environmental attributes. Once consumer willingness to pay (WTP) was conditioned on a wine’s sensory attributes, the addition of environmentally friendly information did not affect their WTP; however, adding sensory information significantly influenced WTP initially based only on environmental attributes. The results confirm the idea that promoting environmentally friendly winegrape production practices would increase demand and lead to higher premiums for the products, but are only sustainable if consumers’ sensory expectations are met on quality.

Implications of Growing Biofuel Demands on Northeast Livestock Feed Costs

The relationship between complete-feed prices and ingredient prices is estimated in order to analyze the effect of higher commodity prices on feed costs, with particular attention paid to the substitutability of corn distillers dried grains with solubles (DDGS). Using the historical price correlation between corn and DDGS, each

EGG ADVERTISING, DIETARY CHOLESTEROL CONCERNS, AND U.S. CONSUMER DEMAND

1 per ton increase in the price of corn increases feed costs between

TRADEOFF BETWEEN ECONOMIES OF SIZE IN TREATMENT AND DISECONOMIES OF DISTRIBUTION FOR RURAL WATER SYSTEMS

0.45 and

Optimal dairy farm adjustments to increased utilization of corn distillers dried grains with solubles.

0.59 per ton across livestock sectors. Marginal feed costs based on lower forecasted price correlations are reduced between

Assessing the Economic Impacts of Food Hubs on Regional Economies: A Framework that Includes Opportunity Cost

0.05 to

Cluster Thinning Reduces the Economic Sustainability of Riesling Production

0.12 per ton across livestock sectors, but only for the dairy ration is the reduction statistically significant. Overall, DDGS cost savings are relatively limited and insufficient to offset the impact of other higher-priced feedstocks.

A Hedonic Approach to Estimating Operation and Maintenance Costs for New York Municipal Water Systems

A model of the domestic demand for eggs was estimated from quarterly data over the period 1987 through 1995, incorporating an index of consumer dietary cholesterol concerns and generic advertising efforts by the American Egg Board and the California Egg Commission. Empirical results indicated that most of the observed change in egg demand could be explained by dietary cholesterol concerns. Simulating the model in a constant elasticity supply framework demonstrated that advertising efforts over the past several years have resulted in net benefits to egg producers largely when considering inelastic supply responses. However, considering trade bias reduces these benefit-cost ratios substantially.

Assessing the Economic Impacts of Local Food System Producers by Scale

This paper outlines a method to determine the tradeoff between economies of size in water treatment and diseconomies of distribution. Cost equations are estimated for several treatment technologies and distribution extensions. Empirical results are used to identify optimal system size where average total costs are minimized. Regardless of treatment, most costs are due to distribution. As water systems expand service territories, only in the most densely populated areas would remaining economies of size in treatment outweigh the diseconomies in distribution.