SIMULTANEITY OF TECHNOLOGY ADOPTION AND PRODUCTIVITY

A simultaneous equation generalized probit model is estimated to determine factors affecting technology adoption by California dairy farmers. Since productivity and technology choice are jointly determined, a single-equation approach to determine whether productivity affects technology adoption is subject to simultaneity bias. Since the system of equations contains both continuous and discrete endogenous variables, generalized probit is used. The findings indicate that the biased single-equation estimates tend to exaggerate relationships with explanatory variables, and in some cases, lead to different implications. This emphasizes the need to use the consistent and asymptotically more efficient generalized probit results to account for simultaneity.Productivity Analysis,

PREDICTING BOVINE SOMATOTROPIN USE BY CALIFORNIA DAIRY FARMERS

An ex ante adoption model of bovine somatotropin (BST) is estimated with survey data of California milk producers. Theoretical justification is developed for incorporation of socioeconomic explanatory variables in a technology-adoption model. The advantages of a multinomial over a binomial ex ante model also are presented. The multinomial logit model is used to predict BST adoption, to test hypotheses on characteristics associated with knowledge and receptiveness towards BST, and to predict potential structural changes in the California dairy industry due to the release of BST technology.Livestock Production/Industries,

Who Buys Local Food?

Using data from a national survey of food shoppers, a Lancaster-Weinstein model is estimated using probit analysis to investigate the characteristics of local food buyers. Because there is no standard for what “local food†is, consumer research is used to define the term fairly narrowly as buying from farmers’ markets, buying directly from farmers, and Community Supported Agriculture (CSA) membership. The results reveal that income and demographic characteristics are not dominant factors, nor do attitudes or behaviors related to the environment and health significantly affect whether shoppers buy local. Rather, it is the attitudes and behaviors related to food and shopping that significantly increase the probability that shoppers buy local food. The implications are strategies that will be effective in promoting local foods.Food Consumption/Nutrition/Food Safety,

Consumers' Views on Local Food

This focus-group study investigated shoppers'’ beliefs and behaviors regarding local foods. Two of the four focus groups consisted of organic food shoppers. They were more committed to purchasing local foods and identified a much wider array of such foods than did the conventional shoppers. One group of conventional shoppers consisted of African-Americans, who tended to define “"local"” as a much larger geographic area than did the group of Caucasian conventional shoppers. The African-Americans were also less interested in local-food labels per se, despite being interested in the qualities associated with local foods: freshness, supporting local farmers, and developing personal relationships with food producers.Consumer/Household Economics,

EFFICIENCY OF SMALL LANDHOLDERS IN EASTERN PARAGUAY

The relative efficiency levels of 283 rural households from three regions in eastern Paraguay are measured using a nonparametric approach. Technical, allocative, and scale efficiency measures are calculated both at national and regional levels, and factors that may affect the efficiency levels are analyzed econometrically. The three regions selected for this study represent distinct production systems and socio-economic conditions: production of traditional crops or extensive livestock operations; a dynamic region with massive in-migration where capitalized farms produce soybeans and wheat; and an older region, integrated with urban areas, where depleted and highly fragmented land has forced households to rely on nonagricultural sources of income. Nonparametric results show high levels of technical efficiency across all three regions, but low levels of allocative and scale efficiency. Because policies to increase scale efficiency are politically unpalatable, the factors affecting allocative efficiency are explored. Significant factors include employment opportunities, land titling, and access to credit, markets, and extension services.Farm Management,

CONSUMER RISK PERCEPTION PROFILES FOR THE FOOD-RELATED BIOTECHNOLOGY, RECOMBINANT BOVINE GROWTH HORMONE (rbGH)

Consumer risk perception, biotechnology, bovine growth hormone, Food Consumption/Nutrition/Food Safety,

Demand for Organic Food in Australia: Results from a Focus-Group Study

Consumer/Household Economics, Demand and Price Analysis,

SIMULATING BST INTRODUCTION IN CALIFORNIA FOR DAIRY POLICY ANALYSIS

An econometric model is estimated to simulate the impact of introducing bovine somatotropin (BST) on the California dairy industry. Forecasts of 1991-94 milk production and prices without BST are compared to those with BST under the 1990 Farm Bill. The effects are evaluated under a range in assumptions, given the uncertainty about BST's commercial benefits and costs. Results indicate the aggregate returns of BST introduction for California are positive, but small, assuming no adverse consumer reaction.Agricultural and Food Policy, Research and Development/Tech Change/Emerging Technologies,

An Overview of the Organic Food Products Market in Australia

Worldwide, the demand for organic food products appears to have expanded quickly in recent years, stimulated by consumer perceptions that organic products are safe, clean and ethical. The growth rate was estimated to be around 10-20 per cent per annum in the next few years, with sales reaching $US 29-31 billion in 2005. The biggest growth in consumption has occurred in developed countries, such as the United States, Western Europe, and Japan that are also major importers of organic foods. It is clear that Australia, traditionally a major exporter of agricultural products, stands to benefit from the expansion in demand for organic products. The objective of this paper is to provide an overview of the Australian organic food products industry, including production, marketing and certification of organic foods, with the aim of assessing whether the opportunity presented in the world market will be able to be taken. Major issues facing the Australian organic industry are discussed and areas for future research are identified. Production issues include the small production base and conversion to organic farming, while marketing issues focus on prices and product integrity. When applicable, market situations for organics in Europe and the United States are also reviewed to serve as a reference point for comparison.Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Marketing,

Issues and Research Needs of the Australian Organic Food Products Market

Worldwide, the demand for organic food products has expanded rapidly in the past decade, stimulated by consumer perceptions that organic products are safer, cleaner and more ethical than conventional products. The demand for organic products is estimated to be growing at a rate of 15-20 per cent per annum, with sales reaching $US23 billion in 2002. The biggest growth in consumption has occurred in developed countries such as the United States and Europe, which are major importers of organic foods. Australia, as a major exporter of agricultural products, stands to benefit from this expansion in demand. However, little is known about the organic industry by other agribusinesses and little research on organics has been conducted in Australia, especially compared to the United States and Europe. The objective of this paper is to provide a contemporary overview of the Australian organic food products industry, including production, marketing and certification of organic foods. Major supply issues such as the small production base and the low rate of conversion to organic farming and major demand issues such as availability, prices and product integrity are discussed. Areas identified for further research include data collection and reporting of production, consumption and trade of organic products, consumer and producer attitudes towards, and expectations of, organic farming, product integrity and labelling regulation, competition from other sustainable farming systems, and future industry structure of the organic sector. Outputs from the research will provide market information to the organic industry that helps identify marketing opportunities and develop strategies for meeting market requirements and sustaining industry growth.Agribusiness, Marketing,