Simulating Impact of Pecan Storage Technology on Farm Price and Growers' Income

Autor: Wu Xi-Ling, W. J. Florkowski
Rok vydání: 1990
Předmět:
Zdroj: Journal of Agricultural and Applied Economics. 22:217-222
ISSN: 2056-7405
1074-0708
DOI: 10.1017/s1074070800001966
Popis: for more than 12-14 months. Except during the Pecan growers can increase income by storing period of a few weeks beyond harvest, pecans are pecans if economically feasible storage technology not stored on farms. As a result, growers cannot take is available. The marginal conditions under which advantage of pecan price increases that may occur growers would store pecans were derived. Revenue several months following the harvest or during the changes due to storage and impact of storage on next harvest when the alternate-year bearing pattern price variations were simulated, suggesting the price causes a short crop. that growers could pay for new storage technology. Introduction of a storage technology to maintain pecan quality for an extended period of time at the economically feasible storage technology would imP pact farmers, pecan shellers, end users of pecans, recan output is influenced by the alternate annual agricultural engineers, storage equipment manufacbearing pattern of pecan trees, which is reflected in turers, and policy-makers. the price time series where high prices and low The purpose of this study was to offer guidance in prices alternate through the years (Pecan Marketing the development of pecan storage technology based Summary); however, price fluctuations could also on cost of storing and volume stored. Effects of be attributed to the lack of storage. The development storage on stabilizing output prices and producers' of affordable storage technology should help stabi- income were simulated assuming a perfectly comlize prices and increase pecan growers' income. Yet, petitive industry. The first section of this article no empirical studies have been conducted to support focuses on developing a storage formula for pecan these hypotheses and to indicate the price that growers. The second section presents a determinagrowers would be willing to pay for storage. tion of the pecan price relationship. The third section Historically, cold storage of pecans has occurred presents data and estimation of the price equation at the wholesale market. Statistics on storage have followed by a fourth section on testing the profit been available since 1970 (Wells et al.). Shellers, maximizing condition. Next, the maximum cost of who purchase pecans from growers or accumulators, an affordable technology is estimated in section five, own or rent storage space for storing in-shell and followed by an analysis of the effects of storage on shelled pecans. Shellers have an interest in pecan pecan price variability and growers' incomes in secstorage beyond the shelling plant and research on tion six. The last section presents implications of the packaging pecans has been conducted (Stein, Kays). study. However, storage by growers has been limited to a few cooperatives organized by growers for the
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