Hilgardia
Hilgardia
Hilgardia
University of California
Hilgardia

Interregional competition in the frozen strawberry industry

Authors

C. C. Dennis
L. L. Sammet

Authors Affiliations

C. C. Dennis was Formerly Cööperative Agent of the Agricultural Marketing Service, U. S. Department of Agriculture, and in the Experiment Station, Berkeley. Now Assistant Professor of Agricultural Economics, Michigan State University, East Lansing; L. L. Sammet was Professor of Agricultural Economics, Agricultural Economist in the Experiment Station and on the Giannini Foundation, and Agricultural Engineer in the Experiment Station, Berkeley.

Publication Information

Hilgardia 31(15):499-611. DOI:10.3733/hilg.v31n15p499. December 1961.

PDF of full article, Cite this article

Abstract

The frozen foods industry has expanded rapidly since World War II. This growth has been shared by the producers and processors of frozen strawberries. It has involved large investments for new processing facilities and extensive new production acreage in some regions. Continuing developments in this industry make the questions of extent of growth and location of new facilities of special interest.

The problem is approached in this study in terms of traditional economic theory of competitive relationships among different producing regions. The empiric solution involves the development of approximations of regional demand and supply relationships and interregional transfer costs and—within the framework of a perfectly competitive market—the specification of optimum allocations of production among different producing regions. Ten producing regions, plus Mexico, are defined, and each mainland state, plus Washington, D.C., is identified as a consuming region. Optimum allocations are determined through use of an adaptation of the transportation problem of linear programming.

To allow consideration of alternative conditions as to regional differentials in production technique, production and processing costs, level of consumption, and product price, nine different analytical models are considered.

Literature Cited

Asher Harold. 1956. Cost-quantity relationships in the air-frame industry. The Rand Corporation, Santa Monica. (See especially chapters 1 and 2.)

Brems Hans. A discontinuous cost function. Amer. Econ. Rev. 1952. 42(4):577-86.

Dennis C. C. An analysis of costs of processing strawberries for freezing. Berkeley, Giannini Found. Agr. Econ. Mimeo. Rpt. No. 1958. 210:

Dennis C. C. The location and cost of strawberry production. Berkeley, Giannini Found. Agr. Econ. Mimeo. Rpt. No. 1959. 217:

Dunn Edgar. The location of agricultural production. 1954. Gainesville: University of Florida Press.

Fetter Frank A. The economic law of market areas. Quar. Jour. Econ. 1924. 38(3):520-29. DOI: 10.2307/1882335 [CrossRef]

French B. C., Sammet L. L., Bressler R. G. Economic efficiency in plant operations with special reference to the marketing of California pears. Hilgardia. 1956. 24(19):543-721. DOI: 10.3733/hilg.v24n19p543 [CrossRef]

Greenhut M. L. Plant location in theory and in practice. 1958. Chapel Hill: University of North Carolina Press.

Henderson J. M. A short-run model for the coal industry. Rev. Econ. and Stat. 1955. 37(4):336-46. (See especially Appendix A.) DOI: 10.2307/1925847 [CrossRef]

Hirsch W. Z. Manufacturing progress functions. Rev. Econ. and Stat. 1952. 34(2):143-55. DOI: 10.2307/1928465 [CrossRef]

Hoover Edgar M. Jr. Location theory and the shoe and leather industries. 1937. Cambridge: Harvard University Press.

Interstate Commerce Commission. Motor transportation of commodities formerly exempt from economic regulations. Information Bul. No. 1958. 1: Washington, D.C

Isard Walter. Location and space economy. 1956. Cambridge: Technology Press of Massachusetts Institute of Technology. DOI: 10.2307/1882135 [CrossRef]

Koopmans T. C., Reiter S. A model of transportation. Activity analysis of production and allocation. Cowles Commission Monograph 13. 1951. New York: John Wiley and Sons.

Reed Robert H. Economic efficiency in assembly and processing Lima beans for freezing. Berkeley, Giannini Found. Agr. Econ. Mimeo. Rpt. No. 1959. 219:

Reese Robert B. Family purchases of selected frozen fruits and vegetables. USDA Marketing Res. Rept. 1959. 317: Washington, D.C

Snodgrass M. M., French C. E. Simplified presentation of “transportation-program procedure” in linear programming. Jour. Farm Econ. 1957. 39(1):40-51.

United States Agricultural Marketing Service. Distribution of cold pack fruits and berries to bulk users. 1955. 1953: March 15: Chicago. 1955p. USDA Release of March 15, Washington, D.C. An address by H. Wayne Bitting to the National Association of Frozen Food Packers Convention, 1955

United States Agricultural Marketing Service. Marketing California strawberries, 1957 season. 1958. San Francisco: Federal-State Market News Service.

United States Agricultural Marketing Service. Interstate trucking of frozen fruits and vegetables under agricultural exemption. Marketing Res. Rept. No. 1959a. 316: Washington, D.C

United States Agricultural Marketing Service. Marketing California strawberries, 1958 season. 1959b. San Francisco: Federal-State Market News Service.

United States Bureau of the Census. Current population report, Series P-25, No. 160 1957. Washington, D.C

Von Thunen Johann Heinrich. Der Isolierte Staat in Beziehung auf Landwirtschaft und Nationalokonomie, dritte auflage. 1930. Gustav Fischer. ed. Jena

Dennis C, Sammet L. 1961. Interregional competition in the frozen strawberry industry. Hilgardia 31(15):499-611. DOI:10.3733/hilg.v31n15p499
Webmaster Email: wsuckow@ucanr.edu