Economic Contributions of the Florida Citrus Industry in 2016-17
Faculty and staff from the University of Florida’s Institute of Food and Agricultural Sciences (UF/IFAS) Economic Impact Analysis Program conducted this study with support from FDOC’s Economic and Market Research Department. The purpose of this study is to estimate the economic contributions of the Florida citrus industry to the state of Florida, based on industry statistics for the 2016-17 season (October 2016 to September 2017). Estimates are presented for citrus fruit production, marketing of fresh citrus fruit by packing houses, and citrus juice processing/manufacturing. Economic contribution estimates are provided for five commercial citrus production areas in Florida. Click here to access the full report and supporting materials Economic Contributions of the Florida Citrus Industry in 2016-17.
Retail promotion with price cut and the imperfect price responses of orange juice demand in the U.S.
Citation: Kim H, Zansler M, House LA. Retail promotion with price cut and the imperfect price responses of orange juice demand in the U.S. Agribusiness. 2017;00:1–14. Read the article here.
The purpose of this study is to investigate imperfect price reversibility and measure price sensitivity incorporated with the effect of trade promotions for refrigerated 100% orange juice (OJ). Using a price decomposition method with distributed lags, we test imperfect reversibility and asymmetric price responses. Empirical models consisted of prices coupled with promotions and prices decoupled from promotions to determine the effect of trade promotions on retail prices. The results showed that the demand for OJ was imperfectly price reversible when we used prices coupled with promotion, and asymmetric price responses were found in not from concentrated OJ demand. Prices coupled with promotions were more elastic than prices decoupled from promotions. The demand for OJ was influenced by both current and previous information. Dynamic adjustments toward price and promotions may result in irreversibility. Competitions with price reduction increase sales in the short run, but frequent promotions may lead to lower reference prices that eventually weaken consumer willingness to purchase at regular prices without promotions. [EconLit citations: C32, Q11, Q13].