Assessing the Success of Farmers’ Markets in Northern New York: A Survey of Vendors, Customers, and Market Managers

Farmers markets, Crop Production/Industries, Farm Management,

Serving Member Interests in Changing Markets: A Case Study of Pro-Fac Cooperative

Since the inception of Pro-Fac Cooperative (PF) in 1960, the cooperative has undergone significant structural and organizational changes. The PF case presents a unique opportunity to examine the changes in the processed fruit and vegetable industry and the strategies adopted by a producer-owned cooperative to best represent member interests in the face of the industry structural changes over the past fifty years. PF is an agricultural cooperative that markets crops primarily grown by its member-growers, including fruits (cherries, apples, blueberries, and peaches), vegetables (snap beans, beets, peas, sweet corn, carrots, cabbage, squash, asparagus and potatoes), and popcorn. Members are located principally in the states of New York, Delaware, Pennsylvania, Michigan, Washington, Oregon, Iowa, Nebraska, Florida, and Illinois. PF‟s history can be generally broken down into three distinct time periods, each representing a significant phase of restructuring. Particular attention is given to the decision to enter into the most recent and current phase of operations. Adequate financing of operations and value-added enterprises were dominant foci over all three periods and each phase involved a different approach. A variety of strategies were also used to enhance the market security for products produced by members. Initially, PF was formed to help preserve the fruit and vegetable processing industry in New York State. At that time, owning the processing facilities was a logical strategy. The development of alternative cooperative structures is often pursued to ameliorate financial constraints, while attempting to maintain member control. The evolution and restructuring of the PF cooperative can also be described using an ownership control rights typology framework (Chaddad and Cook 2004). Drawing from the property rights and incomplete contracts theories of the firm, Chaddad and Cook argue that alternative cooperative models differ in how ownership rights are defined and assigned to the agents of the firm, i.e., members, patrons, managers, and investors. In the current phase, investors acquired ownership rights in a separate legal entity that is partly owned by the cooperative, i.e. a cooperative with capital seeking entities (Chaddad and Cook 2004). As time progressed and economic conditions changed, PF members were not able to adequately capitalize value-added operations. An arrangement was struck with a private equity firm to provide a needed infusion of capital. The case examines to decision made by the board of directors to enter into this agreement. PF has increased its capacity to serve as a preferred supplier to those firms that can afford owning and operating plants while divesting its majority, ownership position in processing assets.Agricultural cooperatives, fruit and vegetable processing, private equity firms, boards of directors, financing., Agribusiness, Community/Rural/Urban Development, Crop Production/Industries,

EGG ADVERTISING, DIETARY CHOLESTEROL CONCERNS, AND U.S. CONSUMER DEMAND

A model of the domestic demand for eggs was estimated from quarterly data over the period 1987 through 1995, incorporating an index of consumer dietary cholesterol concerns and generic advertising efforts by the American Egg Board and the California Egg Commission. Empirical results indicated that most of the observed change in egg demand could be explained by dietary cholesterol concerns. Simulating the model in a constant elasticity supply framework demonstrated that advertising efforts over the past several years have resulted in net benefits to egg producers largely when considering inelastic supply responses. However, considering trade bias reduces these benefit-cost ratios substantially.Consumer/Household Economics, Demand and Price Analysis,

TRADEOFF BETWEEN ECONOMIES OF SIZE IN TREATMENT AND DISECONOMIES OF DISTRIBUTION FOR RURAL WATER SYSTEMS

This paper outlines a method to determine the tradeoff between economies of size in water treatment and diseconomies of distribution. Cost equations are estimated for several treatment technologies and distribution extensions. Empirical results are used to identify optimal system size where average total costs are minimized. Regardless of treatment, most costs are due to distribution. As water systems expand service territories, only in the most densely populated areas would remaining economies of size in treatment outweigh the diseconomies in distribution.Resource /Energy Economics and Policy,

Factors Affecting Wine Purchase Decisions and Presence of New York Wines in Upscale New York City Restaurants

Substantial industry and winery efforts in recent years have centered on improving access of New York wines into upscale restaurants in New York City (NYC), albeit with limited success. A survey of upscale restaurants and wine stores in NYC was conducted to identify important attributes influencing wine purchase decisions and to better understand the primary factors affecting the level of New York wines included on restaurant wine lists. Larger restaurants with higher entrée prices and a larger dependence on wine sales were shown to include fewer New York wines, while restaurants serving higher proportions of Riesling, Cabernet Franc, and domestic wines included more. A wine’s collective regional and varietal reputation was found to influence overall wine purchasing decisions, indicating that marketing efforts targeted on these attributes may be a beneficial strategy.Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,

Factors Affecting the Growth of Food and Beverage Manufacturers in New York State

Community/Rural/Urban Development, Marketing,

A HEDONIC APPROACH TO ESTIMATING OPERATION AND MAINTENANCE COSTS FOR NEW YORK MUNICIPAL WATER SYSTEMS

A hedonic cost function is used to isolate the operation and maintenance costs for water treatments. For small systems, costs are substantial for some technologies, but not for others. When regional differences in input costs are accounted for, small systems located in rural areas may have a cost advantage over similar systems closer to urban centers; however, costs of water treatment to meet Safe Drinking Water Act amendments may still be substantial.Public Economics,

MODELING PERCEPTIONS OF LOCALLY PRODUCED WINE AMONG RESTAURATEURS IN NEW YORK CITY

Poor perceived product quality, an inadequate sales force, and intense competition from wines produced elsewhere are common reasons cited for why New York wines have not achieved broad acceptance in the New York City (NYC) market. NYC restaurant owners, sommeliers, and chefs were surveyed regarding their perceptions and purchasing decisions of wines grown and bottled in New York State. Factor analysis was applied to examine the structure of interrelationships among key indicators of product perception, and an ordinal logistic regression model was used to identify the characteristics of restaurants that show a strong propensity to adopt local wines. The results indicate that a NYC restaurant’s type of cuisine does not affect its propensity to adopt local wine, nor does a restaurant’s desire to offer a large, geographically diverse wine list. The perceived collective reputation for a wine region’s excellence in one particular grape varietal was found to be the most significant factor in the probability of adoption of local wines in NYC. An important implication of these results is that being local is not enough, and New York winery stakeholders could establish a more prominent presence in NYC by emphasizing their collective reputation for particular grape varietals.product perception, restaurant, wine, sommeliers, local, collective reputation, New York, New York City, Demand and Price Analysis, Marketing,

The Dairy Case Management Program: Does It Mooove More Milk?

Livestock Production/Industries, M31, Q13,

Optimal Media Allocation of Generic Fluid Milk Advertising Expenditures: The Case of New York State

A fixed-effects panel data demand model for five New York State markets is estimated to determine the differential impacts of generic fluid milk advertising by media type. Empirical results indicate that among the four media outlets, television advertising has the largest impact on per capita demand, followed by radio, outdoor, and print. Based on the estimated media-specific elasticities, media reallocation of advertising expenditures suggests that milk sales could increase significantly. The results indicate that cooperative media plan strategies developed between the New York regional advertising program and the national advertising programs would achieve the greatest benefits.generic advertising, milk, optimal media allocation, panel data, Marketing,