1996
DOI: 10.2307/1243282
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Supply and Demand Factors for Organic Produce

Abstract: Although the organic produce industry is growing dramatically, little is known about market structure. We estimate a system of reduced-form equations to evaluate supply and demand factors that influence equilibrium farm price and quantity in wholesale markets for organic broccoli, carrots, and lettuce. In the long run, demand factors dominate supply factors. Reduced wholesaling costs, increased margins by which organic wholesale price exceeds nonorganic price, and higher consumer income stimulate both farm pri… Show more

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Cited by 30 publications
(13 citation statements)
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“…In this case, Kemper-Mais Scharrelkip and organic systems had the highest economic feasibility. However, in practice, price premiums can vary and depend particularly on consumer demand (Park and Lohr, 1996). Hence, reducing the price premium for alternative products to zero resulted in a ranking the opposite of that in the default situation.…”
Section: Discussionmentioning
confidence: 99%
“…In this case, Kemper-Mais Scharrelkip and organic systems had the highest economic feasibility. However, in practice, price premiums can vary and depend particularly on consumer demand (Park and Lohr, 1996). Hence, reducing the price premium for alternative products to zero resulted in a ranking the opposite of that in the default situation.…”
Section: Discussionmentioning
confidence: 99%
“…As can be seen in Figure 1A, the price premium received for high-quality organic products peaks early in the life of a product/ industry (Park and Lohr, 1996;Thompson, 1998Thompson, , 2000. As the niche's supply grows larger, and more consumers become aware of it, the market-clearing price decreases.…”
Section: Figurementioning
confidence: 99%
“…Only a handful of econometric analyses of supply and demand for organic products have been conducted owing to the paucity of secondary data. Park and Lohr (1996) employed weekly wholesale data on selected fresh vegetables to estimate a demand and supply effects in a partial adjustment model. The time series they used was available only from September 1985 to December 1989 because the Organic Market News and Information Service shortly after ceased to collect observations on wholesale quantities.…”
Section: A Paucity Of Data For Empirical Studiesmentioning
confidence: 99%
“…From 1994 to 2002, farmers’ markets increased by 79% (Kremen, Greene, & Hanson, n.d.). The dollar value of organic foods sales reached more than $2 billion in 1994 (Organic sales increasing, in stores and by mail order, 1995; Park & Lohr, 1996).…”
Section: Decade: 1990–1999mentioning
confidence: 99%