Slotting Allowances as a Facilitating Practice by Food Processors in Wholesale Grocery Markets: Profitability and Welfare Effects

Slotting allowances, which are lump-sum transfers paid by food manufacturers to grocery retailers in return for various retail concessions, are becoming increasingly common in wholesale grocery markets. This article extends the literature on slotting allowances by considering two features that previously have been ignored: the role of food processors in determining these pricing arrangements, and the effect of slotting allowances on the size and distribution of economic surplus. Slotting allowances motivated by food processors increase procurement quantities and farm prices, and this raises farm surplus, increases total producer surplus, and improves consumer welfare in the food system.     

Consumer Perception of Genetically Modified Food: Empirical Evidence From India

Although the advent of genetically modified (GM) foods changed the agricultural scenario in developed countries, existing research confirms that consumer perception about the consumption of the same is often distorted. GM foods entered the Indian market amid widespread controversies and criticisms. There exists a host of studies that tried to establish the factors that shape favorable consumer perception toward GM foods indeed, but evidence from developing countries like India is still missing. The article undertakes an exploratory investigation of the factors that shape consumer perception about the consumption of GM foods in India and subsequently confirms the same with the aid of a measurement model. The study provides important implications for managers in directing efforts toward influencing consumer perception and instigating positive attitudes toward GM foods so that the benefits of their use can be extended to the masses in relatively nascent markets.     

The Nested PIGLOG Model: An Application to U.S. Food Demand

A new demand system is introduced, the Nested PIGLOG model, nesting thirteen other demand systems including five that are also new. This new model and its nested special cases are applied to models of U.S. food demand that include food-at-home (FAH), food-away-from-home (FAFH), and alcoholic beverages. Although nested tests and out-of-sample forecasting performance favor generalizing models to a certain degree, statistically insignificant improvements to in-sample-fit and even poorer out-of-sample forecast accuracy undermine further generalizations. Based on a subset of preferred models, FAFH is found to be price and income elastic compared to FAH which is price and income inelastic.     

Does Food Safety Information Impact U.S. Meat Demand?

A theoretical model of consumer response to publicized food safety information on meat demand is developed with an empirical application to U.S. meat consumption. Evidence is found for the existence of pre-committed levels of consumption, seasonal factors, time trends, and contemporaneous own- and cross-commodity food safety concerns. The average demand response to food safety concerns is small, especially in comparison to price effects, and to previous estimates of health related issues. This small average effect masks periods of significantly larger responses corresponding with prominent food safety events, but these larger impacts are short-lived with no apparent food safety lagged effects on demand.     

Buying Motives and Trust of Young Consumers for Functional Fermented Dairy Products: Evidence From Croatian Students

The goal of the present study was to determine consumption of functional fermented dairy products among Croatian students, their buying motives, and trust in functional characteristics of such products. Data were collected by means of an online survey with 300 university students in two major Croatian cities. Even though more than half of the respondents were not familiar with the term “functional food,” after it was explained, it turned out that the majority consumes functional fermented dairy products. The main reason for choosing such products is prevention of diseases, followed by positive impact of low-fat content on body weight. Respondents moderately trust in health effects and in producers’ labels regarding functional properties of functional fermented dairy products. Heavier consumers of fermented dairy products and those placing high importance on health effects of food they consume have more trust in functional properties of these products. Results of the study could be used as a base for better communication with young consumers regarding functional fermented dairy products.     

Searching for farmland preservation markets: Evidence from the Southeastern U.S.

Farmland preservation is a topic of much discussion in many areas of the United States, but of little action. Only 1.6 million acres of U.S. farmland are permanently protected nationwide, a number not too different from some estimates of annual losses of farmland to development. While a number of studies have estimated the non-market benefits of preserved farmland (cf. Wichelns, D., Kline, J.D., 1993. The impact of parcel characteristics on the cost of development rights. Agricultural and Resource Economics Review 22 (October) 150–158), this study is the first to focus on the potential for a market for farmland preservation. Using primary data collected from farmers and citizens specifically to address this issue, we estimate the supply of and demand for farmland for preservation. Separate models are estimated for both privately and publicly run preservation programs. Demand is estimated under private-voluntary, public-voluntary, and public-mandatory scenarios. The results show that both public and private programs can be successful. The market capable of preserving the most acres is a tax-funded, state-run program which could permanently preserve over 200,000 acres in 5 years.     

Mergers and Acquisitions and Productivity in the U.S. Meat Products Industries: Evidence from the Micro Data

This article investigates the motives for mergers and acquisitions (M&As) in the U.S. meat products industry from 1977 to 1992. Results show that acquired meat and poultry plants were very productive before mergers, and that all but the very largest meat slaughter and processing plants and all but the bottom 20% of the poultry slaughter and processing plants significantly improved their productivity growth in their postmerger periods. These results lead to the conclusion that synergies and related efficiencies are important motives for M&As.     

A Proposal of the Buying Model for Fresh Food Products

Abstract

This paper develops a model of buying intention for food products based on consumer information, habits and prior experience, contrasting it with a perishable product such as fresh mussels. The model studies what influence the attitude and confidence shown by the subject have in evaluating the product in the intention to buy. Also analysed is the influence that habits and previous experience have on the formation of consumer preference and the intention to buy the product. A structural equation model is used to identify these variables and constructs as well as the relations established between them. Furthermore, strategies are presented for both consumers and managers designed to reduce the perceived risk associated with buying fresh mussels. The purpose of this is to reduce the risk perceived by consumers and prevent it from curtailing mollusc purchases.     

An Analysis of Household Beef Consumption of Japanese Expatriates in U.S.:

This paper uses a novel approach to investigate how food consumption in Japan may change as Japanese consumers become more westernised in their tastes and preferences for food. It is widely believed that as food prices in Japan fall to international levels and as Japanese consumers become more westernised in their taste and preferences for food, their meat consumption patterns, in particular, will approach those of western countries. The approach undertaken in this paper involves a comprehensive survey of Japanese expatriates in Los Angeles, California, regarding their food consumption habits. The findings are interesting as they shed some light on the changing nature of food consumption of accultured Japanese faced with competitive food prices. The results indicate that although household meat consumption of Japanese expatriates have changed, it remains debatable, however, that their food consumption habits will approach those of western consumers in the foreseeable future. The findings have important implications for food marketeers in Japan and elsewhere, particularly as further liberalisation of food import in that country gains momentum.     

Impacts of Declining U.S. Retail Beef Demand on Farm-Level Beef Prices and Production

A systems model was estimated to determine the effects of declining U.S. retail beef demand on farm-level beef prices and production. Retail beef demand declined by nearly 66% from 1976 to 1999. Results indicate autonomous shifts in retail demand significantly impacted farm-level demands and production. Based on equilibrium multipliers, the 1976–99 reduction in beef demand decreased real slaughter cattle prices and production by 32.1% and 11.2%, respectively. Real feeder cattle prices and production decreased by 8.0% and 22.6%, respectively. Combining the decreases in farm prices and production, slaughter and feeder cattle producers experienced a real revenue reduction of $13.3 billion (61%) due to the long-term decline in demand.     

雷斯法案修正案对我国林产品企业影响及对策分析

中国是美国林产品市场最大的生产国与供应国之一,美国雷斯法案修正案植物条款的实施,使中国林产品企业面临前所未有的困难和挑战。中国企业只有认真了解该法案,才能找到应对的办法。介绍了雷斯法案出台背景基础法案以及其中修正和新增的有关条款,分析了这些条款将对中国林产品出口企业产生的影响,并提出了中国林产品出口企业应对雷斯法案的策略。     

美国地质调查局能源和矿产资源战略对我国的启示和建议

美国地质调查局为了应对能源和矿产资源领域出现的新形势和新挑战,以及越来越突出的资源和环境矛盾,于2012年制定了新的能源和矿产资源战略,对未来十年美国地质调查局的工作和研究方向进行系统描述。从成矿系统、物质流、生命周期等角度对该战略呈现出的新特点进行剖析,并指出了美国未来能源和矿产资源发展的动向和趋势,对我国下一步能源和矿产资源调查、信息平台的构建和矿产资源应急机制的制定,以及新兴矿产开发应用提出了相关建议。     

Quarterly Dynamic Relationships Between the U.S. Wheat Market and Wheat-Related Prices for Products Downstream

Abstract

A quarterly VA R econometric model of the reduced form relationships between the U.S. wheat market and prices of processed wheat-related flour, bread, and other bakery products downstream was estimated. The model then simulated under a rise in production- or import-induced increase in wheat quantity, and a decline in wheat price, to examine the dynamic effects on the U.S. wheat market and on processed wheat-related prices downstream. U.S. trade negotiators at the upcoming WTO agricultural round, Federal policy makers, farmers, and agribusiness agents should be interested in the dynamic patterns with which negotiated trade conditions, farm policy alterations, and climatic variation influence wheat quantity and price, and in turn the price of more highly processed wheat-based products downstream.     

Standards as Barriers Versus Standards as Catalysts: Assessing the Impact of HACCP Implementation on U.S. Seafood Imports

The United States mandated a Hazard Analysis Critical Control Points (HACCP) food safety standard for seafood in 1997. Panel model results for 1990 to 2004 suggest that HACCP introduction had a negative and significant impact on overall imports from the top thirty-three suppliers. While the effect for developed countries was positive, the negative effect for developing countries supports the view of "standards as barriers" versus "standards as catalysts." A different perspective emerges from individual country-level analysis. Regardless of development status, leading seafood exporters generally experienced a positive HACCP effect, while most other smaller trading partners faced a negative effect.     

Impacts of Policy Reforms on the Supply of Mexican Labor to U.S. Farms: New Evidence from Mexico

The availability of immigrant farm-workers from Mexico is a critical factor affecting the U.S. fresh fruit and vegetable sector. This paper uses retrospective panel data from rural Mexico to examine the impact of the North American Free Trade Agreement and the Immigration Reform and Control Act on the supply of migrant labor to the United States. We find that, in contrast to expectations, both policies were associated with an increase in migration to U.S. farm jobs from rural Mexico.     

Food Demand in Mexico: An Application of the Amemiya-Tobin Approach to the Estimation of a Censored Food System

The modeling of micro-level food demand patterns requires not only allowing for household heterogeneity, but also addressing the problem of censoring. In this article, we present a variation of the Amemiya-Tobin framework for estimating a censored demand system that allows for household heterogeneity. The unique aspect of our approach is the use of a procedure that ensures the adding up of both latent and observed expenditure shares and also imposes expenditure share nonnegativity. This system is applied to an analysis of food demand based on a random sample of urban Mexican households.     

The Role of Risk and Transaction Costs in Contract Design: Evidence from Farmland Lease Contracts in U.S. Agriculture

The objective of this article is to provide new empirical evidence on landlord-tenant choices of share versus cash-rent contracts in U.S. agriculture. The focus is on the contribution of explanatory variables that represent transaction costs, risk-sharing incentives, or both. An empirical model of contract choice is tested against the 1999 Agricultural Economics and Land Ownership Survey (AELOS) and finds mixed evidence for low transaction cost and risk-sharing-incentive motives for landlord-tenant choices of a share versus cash-rent contract. However, the behavior of landlords and tenants is consistent with them being risk averse. Although it is standard to control for the riskiness of the principal's task that is contracted, we find that other attributes of the landlord are an important part of a relatively complex story for U.S. land tenancy contacting. The latter results have generally been ignored in other published landlord-tenant contracting studies.     

Consumers Acceptance of Peanut Butter and Products Containing Peanut Butter in Two Southeastern States in the U.S.

Abstract

A sample of 606 students, staff and faculty from Auburn and North Carolina A&T State universities were self-administered a questionnaire to evaluate their weekly consumption of peanut butter and products containing peanut butter. The age group ranged from 16 to 78 years, with the majority coming from households of less than four individuals. Their incomes were fairly evenly distributed, with 38 percent earning above $40,000, 31 percent with $10,000 to $40,000, and 31 percent earning less than $10,000. Age, ethnicity, convenience, whether the product was served as a side dish, peanut flavor, and knowledge of fat content significantly influenced peanut butter consumption; whereas age, ethnicity, income, crunchiness, nutrition, convenience, and consumer's perception of fat level in the product affected the consumption of products containing peanut butter.