Can retailers depress lettuce prices at farm level?
AuthorsRichard J. Sexton
Authors AffiliationsR.J. Sexton is Professor and Chair, Department of Agricultural Economics, UC Davis; M. Zhang is Research Assistant, Department of Agricultural Economics, UC Davis.
Hilgardia 49(3):14-18. DOI:10.3733/ca.v049n03p14. May 1995.
In recent years, lettuce growers have expressed increasing concern that the price consumers pay for lettuce in the grocery store does not reflect the price growers receive for their crop. They contend that the bargaining power of major grocery store chains has led to retail prices that remain persistently high even when farm prices are low. This analysis examined factors that determine the difference between retail and wholesale prices for iceberg lettuce and the price farmers received in four major US. cities: Atlanta, Chicago, Los Angeles and New York. The results suggest that retailer power can indeed depress farm prices, especially when available supplies are high and growers' bargaining power is consequently low.
Also in this issue:Epidemiology of stem rot disease of rice: Effects of burning vs. soil incorporation of rice residue
Charting DANR's future
Minimizing the hazards of dormant sprays to wildlife
Gomes named new DANR VP
March was the cruelest month
How new crop disaster policy could affect California
New equations estimate evapotranspiration in Delta
Stylet oil provides limited control of aphid-transmitted viruses in melons
Efforts to reduce stratospheric ozone loss affect agriculture
Leafhopper prefers vines with greater amounts of irrigation
Postemergence herbicide controls johnsongrass, other weeds in field corn
Improved mite sampling may reduce acaricide use in roses