An in-depth analysis of the U. S. apple industry and its problems requires simultaneous consideration of its multiple dimensions of space, time, resources, commodities, production activities, and marketing levels. An empirical model incorporating these dimensions is constructed and its use for policy analysis is demonstrated by measuring the impact of alternative size reductions in regional apple marketings on Lo.b. level industry and regional net returns. The model could also be used in determining the ramifications of changes in consumer demand, transportation costs, and marketing margins on such factors as production, prices, and interregional Hows.
Pricing performance in the marketing systems for lettuce, carrots and tomatoes was found to be generally consistent with models based on the competitive model in space, time, and form. Weekly prices at various f.o.b. shipping points and 12 selected wholesale terminal markets moved together throughout the winter seasons of 1966-68. Gross margins (the difference between shipping point and wholesale terminal market prices) were related to distance, the perishability of the vegetable, and the wholesale terminal market price.
At shipping point, weekly prices of vegetables were functions of the quantity available. In addition, temp and rainfall variables as proxies for disease and size were significantly related to prices as was the quantity of vegetables marketed during the previous 2 weeks. The analysis indicated adjustments in institutions and market information systems may be needed. Results with tomatoes were less satisfactory than with lettuce and carrots because of the complexity of the tomato market in the form dimensions.
A nalysis of Apple Prices and Price Spreads ": Washington Red Delicious apple prices increased at all marketing levels between 1960/61 and 1971/72. The shipping point-retail price spread; packing, storage, and selling costs; and returns to Washington growers all increased. Washington growers maintained their share of the consumers' dollars for fresh apples, although their returns were highly variable. Growers of bagged Eastern Mcintosh and Midwestern Jonathan apples for the fresh market and of Eastern processing apples for applesauce received less than 20 percent of the consumer 's dollar during the past few years.
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