Beyond Scale and Scope: Exploring Economic Drivers of U.S. Specialty Crop Production With an Application to Edamame

Abstract

Specialty crops are considered high-risk, high-reward, yet growers face differing, and relatively larger risk exposure when compared to traditional row crops. With traditional row crops, economies of scale and scope are key factors to increasing economic profitability. However, increasing economic profit for specialty crop operations present challenges which limit grower ability to easily take advantage of scale and scope economies. The authors discuss production, finance, regulatory, price, and human resource risks unique to U.S.-grown specialty crops. We apply our economic risk assessment framework to analyze U.S. edamame and present strategies to manage and mitigate risks faced by growers. We conclude that edamame may represent a profitable alternative crop in the U.S., and suggest future research topics are needed to optimize yields and meet market demand.

Assessing Consumer Preferences and Intentions to Buy Edamame Produced in the U.S.

“…Although our survey respondents somewhat agreed that domestic edamame is available at the grocery store where they most frequently purchase vegetables (mean = 3.6 ± 1.5), they somewhat disagreed that there is a wide range of domestically produced edamame available in the places where they do their grocery shopping (mean = 2.7 ± 1.2; Likert scale: 2 = "Disagree"). This perception is in accordance with the fact the U.S. market is mostly supplied by imports and the domestic production is still low (Neill and Morgan, 2021). Although a negative impression of frozen edamame was not confirmed, our survey respondents agreed that edamame beans sold encased in their pods are better than shelled edamame beans (mean = 4.0 ± 1.4).…”

“…A very similar consumption behavior was reported by the participants of our sensory studies performed over 2 consecutive years in Blacksburg, VA (Carneiro et al, 2021); considering the average of both years, our sensory participants, who were mostly female (55%), reported their intentional vegetable consumption was at least once a day (69%) and consumption of edamame was a few times per year (49%). Even though the demand for edamame in the U.S. has been increasing 12-15% annually (Neill and Morgan, 2021), our studies confirmed the frequency in which consumers include edamame in their diets is still low and it suggests the edamame market has potential to continue growing in the country.…”

“…), a nutritious vegetable crop widely consumed in Asian countries, mostly as a snack (Mebrahtu and Devine, 2008;Carneiro et al, 2020). In the past two decades, edamame sales and consumption have been increasing in the U.S. (Zhang and Kyei-Boahen, 2007;Wolfe et al, 2018;Neill and Morgan, 2021), which has aroused the interest of breeders, growers, and food processors to produce this specialty crop in the country (Ogles et al, 2016). In the Mid-Atlantic and Southeast areas of the U.S., for example, edamame has been suggested as a promising alternative crop to substitute traditional row crops, such as tobacco (Carson et al, 2011;Neill and Morgan, 2021).…”

“…In the past two decades, edamame sales and consumption have been increasing in the U.S. (Zhang and Kyei-Boahen, 2007;Wolfe et al, 2018;Neill and Morgan, 2021), which has aroused the interest of breeders, growers, and food processors to produce this specialty crop in the country (Ogles et al, 2016). In the Mid-Atlantic and Southeast areas of the U.S., for example, edamame has been suggested as a promising alternative crop to substitute traditional row crops, such as tobacco (Carson et al, 2011;Neill and Morgan, 2021). Additionally, edamame can be an important ally to increase average consumption of fruit and vegetables in the U.S., which remains lower than recommended by the Dietary Guidelines for Americans (Storey and Anderson, 2018).…”

‘VT Sweet’: A vegetable soybean cultivar for commercial edamame production in the mid‐Atlantic USA

“…Edamame has been a staple in East Asian diets for centuries (Shurtleff & Aoyagi, 2009) and is most frequently consumed as a snack food, appetizer, salad component, or culinary ingredient by many Americans as they continue to demand its versatility and impressive nutritional quality. While the economic potential of edamame has been discovered by many in the United States (Associated Press, 2013;Bennett, 2016;Bernick, 2009;Garber & Neill, 2019;Neill & Morgan et al, 2020;Nosowitz, 2016;Sciarappa et al, 2016), domestic production has largely lagged behind consumer demand causing the majority of edamame consumed in the United States to be imported from overseas.…”