Assessment of a Marketing Order Prorate Suspension: A Study of California - Arizona Naval Oranges

Nicholas J. Powers, Glenn A. Zepp and Frederic L. Hoff

No 308010, Agricultural Economic Reports from United States Department of Agriculture, Economic Research Service

Abstract: The market for California-Arizona navel oranges performed in about the same way during the 1984/85 season after the handler prorate was suspended as during comparable prorated periods. The industry uses a handler prorate to regulate the weekly quantity of fresh navel oranges shipped to the domestic market by placing an upper limit on the quantity each handler can sell. The prorate was suspended when fresh navel orange prices exceeded parity level during the 1984/85 season. Only minor differences existed between the prorate suspension and prorated periods in the stability of shipments and prices. Higher prices in the 1984/85 season were due to relatively small U.S. fresh orange supplies during the winter. Handler marketing practices changed very little during the partial season with a prorate suspension. The shortrun effects of a full-season prorate suspension would be lower grower prices, greater fresh use, and less processing use of available supplies.

Keywords: Agricultural and Food Policy; Crop Production/Industries; Demand and Price Analysis; Marketing (search for similar items in EconPapers)
Pages: 40
Date: 1986-06
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uerser:308010

DOI: 10.22004/ag.econ.308010

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