An official website of the United States government.

The .gov means it’s official.
Federal government websites always use a .gov or .mil domain. Before sharing sensitive information online, make sure you’re on a .gov or .mil site by inspecting your browser’s address (or “location”) bar.

This site is also protected by an SSL (Secure Sockets Layer) certificate that’s been signed by the U.S. government. The https:// means all transmitted data is encrypted — in other words, any information or browsing history that you provide is transmitted securely.

Assessing the Consumer Behavior, Market Coordination and Performance of the Consumer-oriented Fruit and Vegetable Sector

Investigators
Van Es, Harold Mathis
Institutions
Cornell University
Start date
2010
End date
2015
Objective

The project has three objectives.

First objective is to develop demand and market valuation models for the produce sector that can be used to evaluate effects of increasingly complex product differentiation schemes (organic, enhanced health claims, biodynamic), trade, commodity marketing programs, labeling programs (local, food miles, Fair Trade), traceability systems, and food safety events in the U.S. produce markets.

Second objective is to analyze the relative benefits and costs, to producers and consumers, of government and industry-led marketing and policy programs (certifications, Leafy Greens marketing order, Country of origin labeling, farmers markets) using both theoretical approaches and empirical evidence from multi-state applied research projects.

Third objective is to assess the changing coordination and supply chain management strategies being implemented in the fruit and vegetable sector and identify strategic organizational and marketing implications for a set of firms that are diverse in terms of commodity, marketing approach and size of operation (including small and mid size farms).

More information

NON-TECHNICAL SUMMARY:

This research will conduct a competitiveness analysis for key horticultural products (e.g., apples, grapes, sweet corn, cabbage, snap beans, and onions) produced in NYS. Examining how horticultural products are produced, managed, and sold in outside, but very similar, markets enables stakeholders in NYS to consider their strengths and shed some light on new opportunities. APPROACH: This research proposes to conduct a three-part competitiveness analysis of key horticultural products (e.g., apples, grapes, sweet corn, cabbage, snap beans, and onions) in New York State (NYS). First, crop budgets for the selected NYS horticultural products will be established; for each horticultural product, we will develop an appropriate representative farm in NYS and collect all the relevant cost and revenue items on a per acre basis. Second, an overview of horticultural sectors in NYS and other states/provinces will be performed to examine general market trends between 1980 and 2008. Here we will focus on trends that describe acreage, yields, gross values, per capita consumption rates, trade flows, and the evolution of industry organizations. The competitiveness analysis will look carefully at the underlying drivers of changes that have occurred in NYS and other states/provinces across horticultural sectors. Close attention will be paid to differences in agronomic and climatic conditions, costs of production, market structures, consumer demand, promotion efforts, supply chain management issues, research and development expenditures, and government policies. Third, based on results from the competiveness analysis, some key policy topics will be identified for specialty crops and simulation experiments will be performed to examine the economic implications of either adopting or changing policies applied to horticultural products.

PROGRESS: 2012/10 TO 2013/09

Target Audience: The target audiences for the work during this time period include agricultural producers, agribusiness firms, and policy makers. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Rickard, B., and J. Perla. Do restaurants cater to locapours? Using ZAGAT� survey data to examine factors that influence wine list selections.? Presented at the New York Produce Show and Conference. New York, NY. December 11, 2013. 35 attendees. Rickard, Bradley. Situation and Outlook Report for Fruits and Vegetables.? Presented at the AEM Agricultural Outlook Conference. Ithaca, NY. December 10, 2013. 25 attendees. Rickard, Bradley. �University licensing of patents for varietal innovations in agriculture.? Presented as a departmental seminar at Oklahoma State University. Stillwater, OK. November 22, 2013. 40 attendees. Rickard, Bradley. ?University licensing of patents for apple varietal innovations.? Presented at the CCE Agriculture and Food Systems In-service Conference. Ithaca, NY. November 19, 2013. 10 attendees. Rickard, Bradley. The political economy of guest worker programs in agriculture.? Presented at the FDRS Annual Meeting. Chicago, IL. October 7, 2013. 20 attendees. Rickard, Bradley. University licensing of patents for varietal innovations in agriculture.? Presented at the AAEA/CAES Annual Meeting. Washington D.C. August 6, 2013. 15 attendees. Perla, J., and B. Rickard. Do restaurants cater to locapours? Using ZAGAT� survey data to examine factors that influence wine list selections.? Presented at the NAREA Pre-conference Workshop. Ithaca, NY. June 23, 2013. 35 attendees. Rickard, B., and J. McCluskey. �Reputation Tapping.? Presented at the Eastern Economic Association Annual Meeting. New York, NY. May 10, 2013. 25 attendees. Rickard, Bradley. Economic and Social Effects from the Introduction of Alcohol into Grocery Stores.? Presented as a departmental seminar at the University of Connecticut. Storrs, CT. April 12, 2013. 40 attendees. Rickard, Bradley. University licensing of patents for varietal innovations in agriculture.� Presented at the NC 1034 Annual Meeting. Tucson, AZ. March 15, 2013. 15 attendees. Perla, J., and B. Rickard. Do restaurants cater to locapours? Using ZAGAT� survey data to examine factors that influence wine list selections.? Presented at Vit2013. Rochester, NY. February 7, 2013. 45 attendees. What do you plan to do during the next reporting period to accomplish the goals? Continue working with others in the regional research group S-1050 on on-going work that examines economic issues in horticultural markets, as well as continue working with others at CU examining competitiveness issues in NYS horticultural markets.

PROGRESS: 2011/10/01 TO 2012/09/30

OUTPUTS: During 2012 I finished a project with Jill McCluskey (another member of S-1050) that examined the role of reputation in the development of new wine regions. In this project we examine consumer response to different types of reputation-based information: firm-based, region-based, and international-based. We conducted a laboratory experiment at Cornell in late-2011 and in early 2012 to collect WTP data under various information treatments and the results have been disseminated to grape growers and wine makers in New York, New Jersey, and Virginia. As a follow-up to the and study described above, I am now working with Todd Schmit and a graduate student at Cornell collecting restaurant-level data (food and wine) to understand the drivers of demand for local wines in restaurants in NYS. This work has been shared with wine and grape researchers at Cornell and with some industry stakeholders in New York State. During 2012 we (myself, Miguel Gomez, and others) completed our project that examines consumer demand for varietal introductions in the apple sector and the results were shared with apple growers involved in marketing the new patented apple varieties. I also have continued to work with Miguel Gomez and others in NYS to develop crop budgets for key horticultural products in NYS. Research in this area was shared with processing vegetable growers in New York State in 2012. During 2012 I also worked with folks in Crop and Soil Sciences to develop crop budgets for various vegetables that are produced using alternative organic cropping systems. This work was shared in detail with the grower members on the advisory council for the project. Reseach was disseminated at the following events that were attended primarily by industry stakeholders: Finger Lakes Wine and Grape Symposium: Wine Industry Workshop. Seneca Falls, NY. NY Fruit and Vegetable Expo. Syracuse, NY. January 24, 2012. Cornell Agriculture and Food Systems In-service: Farm Management and Marketing. Ithaca, NY. November 15, 2012. Cornell Agriculture and Food Systems In-service: Cornell Recent Advances in Viticulture and Enology. Ithaca, NY. November 16, 2012. AEM Agricultural Outlook Conference. Ithaca, NY. December 18, 2012. New York Produce Show and Conference. New York, NY. December 5, 2012. PARTICIPANTS: Not relevant to this project. TARGET AUDIENCES: Not relevant to this project. PROJECT MODIFICATIONS: Not relevant to this project.

PROGRESS: 2010/10/01 TO 2011/09/30

OUTPUTS: During the reporting period a major output stemmed from work that examined the market potential for varietal introductions in the apple sector. I developed an experiment during 2011 that examined consumers' willingness to pay for NY1, the new managed apple variety developed at Cornell University. We introduced consumers to five apple varieties (Empire, Fuji, Honeycrisp, Pinata, and NY1) and asked them to place bids on one pound of each variety. Consumers were introduced to NY1 with one of three names as a way to gauge the relative importance of names for the new variety. Our names draw on commonly used themes for tree fruit varietal names: sensory names, appearance names, and namesake names. Our results show that a sensory name had a significant effect on consumers' valuation of NY1 and Pinata, but little effect on consumers' valuation of the other traditional varieties. Results from this work were disseminated widely to stakeholders in New York State including presentations at the CCE-Hudson Valley Fruit School in Kingston, NY; at the CCE-Wayne County Fruit School in Newark, NY; at the New York Produce Show and Conference, in New York City, NY; and at the CCE-Orleans County Fruit School in Albion, NY. During the reporting period I have also continued to develop crop budgets for key horticultural products in NYS. Research in this area has recently been completed for processing peas and snap beans using survey data collected from farms in western New York State. We found that average costs of production were in line with what has been reported in other states, and we would like to conduct a more formal analysis across selected states. Results from this work were disseminated widely to stakeholders in New York State through extension bulletins and presentations. An extension bulletin written with S.-T. Ho, J. Kikkert, K. Klotzbach, S. Reiners, and M. Smith titled Examining the Costs of Producing Processing Snap Beans and Green Peas in New York State was released in 2011. Furthermore, these results were disseminated to staekholders at a presentation titled Situation and Outlook Report for Fruits and Vegetables at the AEM Agricultural Outlook Conference. During 2011 I also worked with colleagues in CALS to develop crop budgets for various vegetables that are produced using alternative organic cropping systems. Results from an extension bulletin written by myself, S. Chan, B. Caldwell, C. Mohler were disseminated to research colleagues at a univeristy-industry meeting in June 2011 and shared with farmer members of the advisory council for the Organic Cropping Systems Project. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.
Funding Source
Nat'l. Inst. of Food and Agriculture
Project source
View this project
Project number
NYC-121864
Accession number
223973
Categories
Parasites
Natural Toxins
Viruses and Prions
Bacterial Pathogens
Chemical Contaminants
Policy and Planning
Food Defense and Integrity
Legislation and Regulations
Commodities
Produce
Grains, Beans, Legumes