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Orderly Marketing for Lemons: Who Benefits?

Hoy Carman and Daniel Pick

American Journal of Agricultural Economics, 1990, vol. 72, issue 2, 346-357

Abstract: The orderly marketing goal of federal marketing orders may deal with price stability or uniform flow of product to market, a choice which can have important economic implications. This study examines the impact of four fresh lemon marketing strategies on returns at the producer, FOB, and retail levels, together with marketing margins and consumer surplus. Producers, as a group, and consumers should favor a constant price strategy. Some individual producers and middlemen, however, enjoyed higher returns with constant weekly sales. Explanations of the shift in lemon sales patterns which occurred during the 1970s is examined in light of these results.

Date: 1990
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Handle: RePEc:oup:ajagec:v:72:y:1990:i:2:p:346-357.