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Regional Competitiveness in Fresh Produce Markets: Exploring Seasonal Dynamics and the Role of Energy Costs in Apple Markets

Published online by Cambridge University Press:  15 September 2016

Wenjing Hu ,
Dawn Thilmany McFadden  and
Dustin L. Pendell
Wenjing Hu*
Affiliation:
Department of Agricultural and Resource Economics at Colorado State University
Dawn Thilmany McFadden
Affiliation:
Department of Agricultural and Resource Economics at Colorado State University
Dustin L. Pendell
Affiliation:
Department of Agricultural and Resource Economics at Colorado State University
*
Correspondence: Wenjing Hu ▪ 2300 Arapahoe Avenue Apt 205 ▪ Boulder, CO 80302 ▪ Phone 970.691.9348 ▪ Email[email protected].
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Abstract

The fresh produce sector is subject to season-specific market conditions so understanding differential impacts of various factors across marketing periods is important. We analyze the market structure, key factors influencing shipments, and seasonal price relationships in regional apple markets at the shipping-point and terminal-market levels using a symmetric variable threshold autoregressive model that allows threshold bands (which define price ranges considered in shipping decisions) to vary seasonally. We find that transportation costs and seasonality have a significant impact on threshold bands of market pairs and that the impact varies seasonally. This varying band across seasons may represent suppliers who perceive more or less opportunities to adjust their supply between regional markets and gain advantage by being responsive to market conditions.

Keywords

apple marketsmarket structureprice relationshipthreshold autoregressive model
Type
Research Article
Information
Agricultural and Resource Economics Review , Volume 43 , Issue 3 , December 2014 , pp. 357 - 372
Copyright
Copyright © 2014 Northeastern Agricultural and Resource Economics Association 

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