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An Economic Evaluation of the Hass Avocado Promotion Order’s First Five Years

Hoy Carman, Lan Li and Richard J. Sexton

No 121697, Research Reports from University of California, Davis, Giannini Foundation

Abstract: The U.S. avocado industry has evolved from an emphasis on seasonal domestic production of a mix of avocado varieties to year-round availability of domestic and imported Hass avocados. California avocado producers, who account for approximately 90% of U.S. avocado production and essentially all U.S. Hass avocado production, have funded promotional programs for avocados since 1961. With few imports of avocados prior to the early 1990s, the benefits from these demand-enhancing programs flowed directly to California producers. Imports of avocados into the United States have increased steadily since then, resulting in a free-rider problem that led ultimately to creation of the Hass Avocado Promotion, Research, and Information Act of 2000. This act established the authorizing platform and timetable for creation of the Hass Avocado Promotion, Research, and Information Order (HAPRIO), which was approved in 2002. This study evaluates the promotion activities conducted by the Hass Avocado Board (HAB) during its first five years of operation. The report discusses the major marketing programs conducted under the auspices of HAB, provides an overview of trends in U.S. consumption of avocados, and contains a detailed analysis of annual demand for avocados in the United States with the goal of determining the impact that promotions have had on avocado demand. The report introduces and implements a simulation framework to estimate the impact of avocado promotion on grower prices and incomes and on consumption of avocados based on the results of the demand analysis. It provides an analysis of avocado demand and the impact of promotion based on retail scanner data, and presents the analysis of the impacts of HAB’s information-sharing and dissemination program.

Keywords: Agribusiness; Agricultural and Food Policy; Crop Production/Industries; Land Economics/Use; Marketing (search for similar items in EconPapers)
Pages: 48
Date: 2009-12
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DOI: 10.22004/ag.econ.121697

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