FLUID MILK PURCHASE PATTERNS IN THE SOUTH: EFFECTS OF USE OF NUTRITION INFORMATION AND HOUSEHOLD CHARACTERISTICS

This study measures the impacts of use of nutrition information and household socioeconomic characteristics on market participation and amount purchased of whole-fat and low-fat milks in the South. Data are from the 1987-88 Nationwide Food Consumption Survey. The results showed that use of nutrition information had little effect on purchases on the basis of nutritional benefits through health professionals and product packaging are useful tools for the dairy industry to attract market participation.Fluid milk, Household purchases, Market participation, Food Consumption/Nutrition/Food Safety,

Factors Associated with the Selection of Cooperative vs. Proprietary Handlers of Milk in Tennessee

Factors that influenced the decision by dairy farmers to select cooperatives milk handlers versus proprietary handlers were examined. In a 1989 survey, Tennessee dairy farmers were asked to indicate reasons that influenced their choice of milk handler, such as better price, an assured market, and better service. Characteristics of the dairy farmers were then compared between those who selected a specific reason and those who did not. Better service and an assured market were the most often cited reasons by cooperative members, and higher price and lower deductions were cited more often by nonmembers. Farmers who cited price as a reason tended to have larger dairy farms, be less diversified, and more indebted than those who did not cite price as a reason. Those who selected service as a reason had more dairying experience and were less indebted than those who did not select service.Agribusiness, Livestock Production/Industries,

INDUSTRIALIZATION IN AGRICULTURE: DISCUSSION

Research and Development/Tech Change/Emerging Technologies,

THE DEMAND FOR BUTTER, MARGARINE, AND OILS: A NONPARAMETRIC TEST FOR EVIDENCE OF STRUCTURAL CHANGE

The objective of this study was to determine whether structural change in the demand for butter, margarine, and salad and cooking oils occurred between 1967 and 1986. A nonparametric method, which does not require that a functional form be imposed on the data, was used to test for violations from stable, well-behaved preferences. Violations were found, but they were small in magnitude. Therefore, the results failed to show strong evidence that consumption patterns for butter, margarine, and oils were inconsistent with stable preferences.Demand and Price Analysis,

CONSUMERS' WILLINGNESS TO PAY FOR ECO-CERTIFIED WOOD PRODUCTS

We use Kriström's simple spike model to assess the factors influencing consumers' willingness to pay a premium for a variety of certified wood products. A survey of over 1600 Pennsylvania and Tennessee residents found that approximately 35% were willing to pay some positive "premium" for environmentally certified wood products. For three types of wood products (a $29 shelf, a$200 chair, and a $800 table) we find the estimated market premiums to be 12.9%, 8.5%, and 2.8%, respectively.Consumer/Household Economics,

TWO-STAGE UTILITY MAXIMIZATION AND IMPORT DEMAND SYSTEMS REVISITED: LIMITATIONS AND AN ALTERNATIVE

Two-stage utility maximization theory has been widely used in the literature to estimate import demand for agricultural commodities that are often inputs. This article examines the overlooked conceptual and empirical limitations of applying two-stage utility maximization theory to model the demand for imported commodities that are inputs. A discussion is presented about how the underutilized theory of two-stage profit maximization overcomes these limitations. Also discussed are the conditions under which errors illustration of the two-stage profit maximization procedure is provided.Demand and Price Analysis, International Relations/Trade,

AN ANALYSIS OF EXPORT MARKET STRATEGIES AND BARRIERS PERCEPTIONS BY U.S. AGRICULTURAL HVP EXPORTERS

This study identifies barriers perceived by agricultural exporters and examines how these perceptions influence use of export market strategies. Ordered logit models are used to estimate effects of perceived barriers and firm characteristics on export market strategies. The results from these models show that perceptions about import restrictions influence use of diversification of exports across products, competition influences use of competitive export pricing, and overseas product regulations affect product adaptation for export markets.International Relations/Trade,

Meat Managers' Expectations Regarding Marketing of Irradiated Red Meats

The objective of this study is to assess meat managers' expectations about impact of the recent regulatory approval of irradiated raw meat and meat products on marketing decisions and plans by supermarkets and grocery meat retailers. Forty managers of meat departments were interviewed in person to obtain the information for the study. While many of the meat managers believed that irradiation would help increase shelf life and reduce spoilage, they were less optimistic about consumers being willing to pay a higher price for the irradiated product than the non-irradiated product.Agribusiness,

RETAIL MEAT MANAGERS' PROFITABILITY EXPECTATIONS FOR IRRADIATED RED MEATS

This paper uses data from 40 personal interviews with meat department managers at grocery stores and supermarkets to investigate managers' expectations regarding the profitability potential of irradiated red meats. The study models managers' profitability expectations as function of many attributes and factors, such as the meat manager's or store's characteristics, how familiar the meat manager is with irradiation, and opinions held by the manager regarding irradiation's benefits consumer acceptance. The study also examines how profitability expectations may influence the expected timing of adoption by the manager's retail store, the projected percentage of red meats eventually allocated to irradiated red meats, and merchandising strategies.Demand and Price Analysis,

REVENUE IMPACTS OF MPP BRANDED FUNDS: A FIRM LEVEL ANALYSIS

The USDA recently redirected the Market Access Program (MAP) to allocate all branded products export promotion funds to small firms and cooperatives. The redirection was, in part, a response to reports by the General Accounting Office that were critical of past allocations of export promotion funds to large, experienced exporters. This study uses a firm level analysis to examine firms' effectiveness in using Market Promotion Program (MPP, which is now the MAP) funds to increase revenues. Whereas point estimates suggested that smaller firms were more effective in translating MPP funds into increased revenue than larger firms, these point estimates for small firms were statistically indistinguishable from zero. In contrast, large firms showed an increase in revenue of greater than one dollar for every dollar of MPP funds. Further, the revenue increase was statistically significant. Thus, the firm level analysis supports neither the GAO hypotheses nor the recent program changes.export promotion programs, export sales, export revenues, Market Promotion Program, firm-level analysis, joint estimation, Financial Economics,