U.S. Kiwifruit Industry Model: Annual Supply and Monthly Demand

Hikaru Hanawa Peterson and Lois Schertz Willett

Journal of Agricultural and Applied Economics, 2000, vol. 32, issue 3, 479-491

Abstract: A dynamic econometric model of the U.S. kiwifruit industry provides a framework for empirical analysis of small-scale commodities, particularly those used by producers for diversification. Production and marketing processes are explained by annual and monthly components, respectively. Results confirm that plantings were speculative and that economic feasibility critically impacts acreage retention as the industry matures. Prices at alternative outlets and fruit quality in storage affect monthly shipments. Flexibilities of monthly f.o.b. prices imply elastic kiwifruit demand, and imports are found to be substitutes. The industry could increase its average annual gross revenue by marketing the crop earlier in the season.

Date: 2000
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