Abstract An important particularity of the dairy chain is that many times the main interest of the dairy industry relies on milk components, the so-called milk solids. Paying for milk solids content is a way of trying to create incentives for farms to invest in improving the solids content. However, little is known about the effects of this type of payment on the dairy supply chain. The paper proposes a microeconomic model to analyze the effects of paying for milk solids content on the performance of farms, dairy processors and consumer welfare. Based on the model, we find that this mechanism improves the yield of milk in producing dairy products and benefits farms, processor and consumers simultaneously. Extensions demonstrate the robustness of results and provide a generalized model and conditions for which these results are valid.
{"title":"The Impact of Paying for Milk Solids on the Performance of the Dairy Supply Chain and Consumers","authors":"L. Pinha, M. Braga, G. Carvalho","doi":"10.1515/jafio-2020-0012","DOIUrl":"https://doi.org/10.1515/jafio-2020-0012","url":null,"abstract":"Abstract An important particularity of the dairy chain is that many times the main interest of the dairy industry relies on milk components, the so-called milk solids. Paying for milk solids content is a way of trying to create incentives for farms to invest in improving the solids content. However, little is known about the effects of this type of payment on the dairy supply chain. The paper proposes a microeconomic model to analyze the effects of paying for milk solids content on the performance of farms, dairy processors and consumer welfare. Based on the model, we find that this mechanism improves the yield of milk in producing dairy products and benefits farms, processor and consumers simultaneously. Extensions demonstrate the robustness of results and provide a generalized model and conditions for which these results are valid.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-11-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2020-0012","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45607109","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A. Bodini, Sara Chiussi, M. Donati, V. Bellassen, Á. Török, Lisbeth Dries, Dubravka Sinčić Ćorić, L. Gauvrit, E. Tsakiridou, E. Majewski, B. Ristić, Žaklina Stojanović, José María Gil Roig, Apichaya Lilavanichakul, Nguyễn Quỳnh An, F. Arfini
Abstract Water Footprint (WF, henceforth) is an indicator of water consumption and has taken ground to assess the impact of agricultural production processes over freshwater. The focus of this study was contrasting non-conventional, certified products with identical products obtained through conventional production schemes (REF, henceforth) using WF as a measure of their pressure on water resources. The aim was to the show whether products that are certified as Food Quality Schemes (FQS, henceforth) could also incorporate the lower impact on water among their quality features. To perform this comparison, we analysed 23 products selected among Organic, PDO and PGI as FQS, and their conventional counterparts. By restricting the domain of analysis to the on-farm phase of the production chain, we obtained that that no significant differences emerged between the FQS and REF products. However, if the impact is measured per unit area rather than per unit product, FQS showed a significant reduction in water demand.
{"title":"Water Footprint of Food Quality Schemes","authors":"A. Bodini, Sara Chiussi, M. Donati, V. Bellassen, Á. Török, Lisbeth Dries, Dubravka Sinčić Ćorić, L. Gauvrit, E. Tsakiridou, E. Majewski, B. Ristić, Žaklina Stojanović, José María Gil Roig, Apichaya Lilavanichakul, Nguyễn Quỳnh An, F. Arfini","doi":"10.1515/jafio-2019-0045","DOIUrl":"https://doi.org/10.1515/jafio-2019-0045","url":null,"abstract":"Abstract Water Footprint (WF, henceforth) is an indicator of water consumption and has taken ground to assess the impact of agricultural production processes over freshwater. The focus of this study was contrasting non-conventional, certified products with identical products obtained through conventional production schemes (REF, henceforth) using WF as a measure of their pressure on water resources. The aim was to the show whether products that are certified as Food Quality Schemes (FQS, henceforth) could also incorporate the lower impact on water among their quality features. To perform this comparison, we analysed 23 products selected among Organic, PDO and PGI as FQS, and their conventional counterparts. By restricting the domain of analysis to the on-farm phase of the production chain, we obtained that that no significant differences emerged between the FQS and REF products. However, if the impact is measured per unit area rather than per unit product, FQS showed a significant reduction in water demand.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-11-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2019-0045","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42788716","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
M. Donati, A. Wilkinson, M. Veneziani, F. Antonioli, F. Arfini, A. Bodini, V. Amilien, P. Csillag, Hugo Ferrer‐Pérez, Alexandros Gkatsikos, L. Gauvrit, Chema Gil, V. Hoang, Kamilla Knutsen Steinnes, Apichaya Lilavanichakul, K. Mattas, O. Napasintuwong, A. Nguyễn, Mai Nguyen, I. Papadopoulos, B. Ristić, Žaklina Stojanović, M. Tomić Maksan, Á. Török, E. Tsakiridou, V. Bellassen
Abstract We study the effect of a set of food quality scheme (FQS) products within the local economy using a local multiplier approach based on LM3 methodology. To evaluate the effective contribution within the local area, we compare each FQS product with its equivalent standard/conventional counterpart. Local multiplier allows us to track the financial flows converging within the local area at the different levels of the supply chain so that we can measure the FQS product role in local economic activation. Overall, the FQS products exhibit a higher positive contribution to the local economy than the standard references. However, there is significant heterogeneity in the impact according to the product categories. In the case of vegetal products, the local economic advantage due to FQS is 7% higher than the reference products, but the statistical tests reject the null hypothesis that the medians are significantly different from zero. On the contrary, animal products exhibit a larger contribution of FQS than the standard counterparts (+24%). The PGI products (+25%) produce the major effect, while PDO products show a median difference lower (+6%). The organic and non-organic products seem to be substantially equivalent in terms of contribution to the local economy, due to the similarity in the downstream processing phase.
{"title":"Economic Spill-Over of Food Quality Schemes on Their Territory","authors":"M. Donati, A. Wilkinson, M. Veneziani, F. Antonioli, F. Arfini, A. Bodini, V. Amilien, P. Csillag, Hugo Ferrer‐Pérez, Alexandros Gkatsikos, L. Gauvrit, Chema Gil, V. Hoang, Kamilla Knutsen Steinnes, Apichaya Lilavanichakul, K. Mattas, O. Napasintuwong, A. Nguyễn, Mai Nguyen, I. Papadopoulos, B. Ristić, Žaklina Stojanović, M. Tomić Maksan, Á. Török, E. Tsakiridou, V. Bellassen","doi":"10.1515/jafio-2019-0046","DOIUrl":"https://doi.org/10.1515/jafio-2019-0046","url":null,"abstract":"Abstract We study the effect of a set of food quality scheme (FQS) products within the local economy using a local multiplier approach based on LM3 methodology. To evaluate the effective contribution within the local area, we compare each FQS product with its equivalent standard/conventional counterpart. Local multiplier allows us to track the financial flows converging within the local area at the different levels of the supply chain so that we can measure the FQS product role in local economic activation. Overall, the FQS products exhibit a higher positive contribution to the local economy than the standard references. However, there is significant heterogeneity in the impact according to the product categories. In the case of vegetal products, the local economic advantage due to FQS is 7% higher than the reference products, but the statistical tests reject the null hypothesis that the medians are significantly different from zero. On the contrary, animal products exhibit a larger contribution of FQS than the standard counterparts (+24%). The PGI products (+25%) produce the major effect, while PDO products show a median difference lower (+6%). The organic and non-organic products seem to be substantially equivalent in terms of contribution to the local economy, due to the similarity in the downstream processing phase.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-11-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2019-0046","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47932420","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
M. Hilal, Guy Leedon, Matthieu Duboys de Labarre, F. Antonioli, Michael Boehm, Csillag Péter, M. Donati, M. Drut, Hugo Ferrer‐Pérez, L. Gauvrit, J. Gil, Alexandros Gkatsikos, M. Gołaś, V. Hoang, K. Steinnes, Apichaya Lilavanichakul, A. Malak-Rawlikowska, K. Mattas, O. Napasintuwong, A. Nguyễn, B. Ristić, B. Schaer, M. T. Maksan, R. Brečić, Á. Török, G. Vittersø, V. Bellassen
Abstract In this paper, we test to what extent Food Quality Schemes (FQS, including Geographical Indications and organic products) contribute to the social and economic sustainability of farmers and regions through employment and education. Through employment, FQS may counter the urban migration trend affecting rural regions, and help retain economic and social capital in the local region. Indeed, as FQS are often small and specialised sectors, the economic inefficiency of such businesses may translated into greater employment and social sustainability. Separately, by requiring a higher-level of quality and hence skills, FQS may encourage greater local educational attainment or skilled immigration. To test these propositions, we analyse the employment and educational outcomes of 25 FQS. Our results show that the FQS products examined have a 13% higher labour usage (labour-to-production ratio) compared to reference products, indicating that they provide greater employment. Additionally, wage levels are 32% higher in FQS compared to references. Despite providing greater employment and higher wages, profitability of FQS (i.e. how much turnover/profit is generated per employee) is nevertheless 32% higher for FQS compared to reference products, due to the ability to attract higher product prices. Finally, there is no clear link between FQS and greater (or lower) education attainment in the supply chain. Overall, our results suggest that FQS can provide a strong contribution to local employment, employee income and business profits, strengthening the social and economic sustainability of producers and regions.
{"title":"Organic and Geographical Indication Certifications’ Contributions to Employment and Education","authors":"M. Hilal, Guy Leedon, Matthieu Duboys de Labarre, F. Antonioli, Michael Boehm, Csillag Péter, M. Donati, M. Drut, Hugo Ferrer‐Pérez, L. Gauvrit, J. Gil, Alexandros Gkatsikos, M. Gołaś, V. Hoang, K. Steinnes, Apichaya Lilavanichakul, A. Malak-Rawlikowska, K. Mattas, O. Napasintuwong, A. Nguyễn, B. Ristić, B. Schaer, M. T. Maksan, R. Brečić, Á. Török, G. Vittersø, V. Bellassen","doi":"10.1515/jafio-2019-0042","DOIUrl":"https://doi.org/10.1515/jafio-2019-0042","url":null,"abstract":"Abstract In this paper, we test to what extent Food Quality Schemes (FQS, including Geographical Indications and organic products) contribute to the social and economic sustainability of farmers and regions through employment and education. Through employment, FQS may counter the urban migration trend affecting rural regions, and help retain economic and social capital in the local region. Indeed, as FQS are often small and specialised sectors, the economic inefficiency of such businesses may translated into greater employment and social sustainability. Separately, by requiring a higher-level of quality and hence skills, FQS may encourage greater local educational attainment or skilled immigration. To test these propositions, we analyse the employment and educational outcomes of 25 FQS. Our results show that the FQS products examined have a 13% higher labour usage (labour-to-production ratio) compared to reference products, indicating that they provide greater employment. Additionally, wage levels are 32% higher in FQS compared to references. Despite providing greater employment and higher wages, profitability of FQS (i.e. how much turnover/profit is generated per employee) is nevertheless 32% higher for FQS compared to reference products, due to the ability to attract higher product prices. Finally, there is no clear link between FQS and greater (or lower) education attainment in the supply chain. Overall, our results suggest that FQS can provide a strong contribution to local employment, employee income and business profits, strengthening the social and economic sustainability of producers and regions.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2019-0042","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47262903","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
M. Drut, F. Antonioli, Michael Böhm, R. Brečić, L. Dries, Hugo Ferrer‐Pérez, L. Gauvrit, V. Hoang, K. Steinnes, Apichaya Lilavanichakul, E. Majewski, O. Napasintuwong, A. Nguyễn, K. Mattas, B. Ristić, B. Schaer, T. Tangeland, M. T. Maksan, P. Csillag, Á. Török, E. Tsakiridou, M. Veneziani, G. Vittersø, V. Bellassen
Abstract This paper estimates the foodmiles (embedded distances) and transport-related carbon emissions of 27 Food Quality Scheme (FQS) products – Protected Designation of Origin (PDO), Protected Geographical Indications (PGI) and organic – and their reference products. It goes further than the existing literature by adopting a value chain perspective, instead of the traditional consumer perspective, and focusing on FQS products. The same methodology is applied across all the case studies. The article specifically investigates the determinants of differences between FQS and their references. FQS products travel significantly shorter distances (−30%) and generate significantly lower transport-related emissions (−23%) than conventional food products. The differences are even greater for vegetal and organic products. The relationship between distance and transport-related emissions is not exactly proportional and highlights the importance of transport modes and logistics, in particular for exports and imports. Finally, we stress the importance of the spatial distribution of the different stages in the value chains (e.g. production, processing). PDO technical specifications delimit a geographical area for production and processing, thereby limiting distances and transport-related emissions compared to conventional food products, but also compared to other types of FQS.
{"title":"Foodmiles: The Logistics of Food Chains Applied to Food Quality Schemes","authors":"M. Drut, F. Antonioli, Michael Böhm, R. Brečić, L. Dries, Hugo Ferrer‐Pérez, L. Gauvrit, V. Hoang, K. Steinnes, Apichaya Lilavanichakul, E. Majewski, O. Napasintuwong, A. Nguyễn, K. Mattas, B. Ristić, B. Schaer, T. Tangeland, M. T. Maksan, P. Csillag, Á. Török, E. Tsakiridou, M. Veneziani, G. Vittersø, V. Bellassen","doi":"10.1515/jafio-2019-0040","DOIUrl":"https://doi.org/10.1515/jafio-2019-0040","url":null,"abstract":"Abstract This paper estimates the foodmiles (embedded distances) and transport-related carbon emissions of 27 Food Quality Scheme (FQS) products – Protected Designation of Origin (PDO), Protected Geographical Indications (PGI) and organic – and their reference products. It goes further than the existing literature by adopting a value chain perspective, instead of the traditional consumer perspective, and focusing on FQS products. The same methodology is applied across all the case studies. The article specifically investigates the determinants of differences between FQS and their references. FQS products travel significantly shorter distances (−30%) and generate significantly lower transport-related emissions (−23%) than conventional food products. The differences are even greater for vegetal and organic products. The relationship between distance and transport-related emissions is not exactly proportional and highlights the importance of transport modes and logistics, in particular for exports and imports. Finally, we stress the importance of the spatial distribution of the different stages in the value chains (e.g. production, processing). PDO technical specifications delimit a geographical area for production and processing, thereby limiting distances and transport-related emissions compared to conventional food products, but also compared to other types of FQS.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-10-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2019-0040","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43555901","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The organized Exchange spot (cash) cheese market is a private industry institution that has historically performed a primary price discovery function in the U.S. dairy industry. In addition to affecting cheese prices in contract cheese market, the Exchange spot cheese prices have influenced prices paid for milk at the farm level that are set within the system of Federal Milk Marketing Orders (FMMOs). The effects that the Exchange spot cheese market has on FMMOs milk pricing attract increased attention in light of the recent concerns about increasing milk price volatility and its effect on the dairy farm profitability. While the design of milk pricing within FMMOs has evolved over the last three decades, the effects of the Exchange spot cheese prices on FMMOs milk pricing have intensified. The research analyzes the conduct and performance of the Exchange spot cheese market during three FMMOs milk pricing regimes (Minnesota-Wisconsin price regime, Basic Formula Price and modern Multiple Component Pricing regime), with a particular focus on the Exchange spot cheese price behavior.
{"title":"Price Discovery in the United States Dairy Industry","authors":"Yuliya V. Bolotova","doi":"10.1515/jafio-2019-0002","DOIUrl":"https://doi.org/10.1515/jafio-2019-0002","url":null,"abstract":"Abstract The organized Exchange spot (cash) cheese market is a private industry institution that has historically performed a primary price discovery function in the U.S. dairy industry. In addition to affecting cheese prices in contract cheese market, the Exchange spot cheese prices have influenced prices paid for milk at the farm level that are set within the system of Federal Milk Marketing Orders (FMMOs). The effects that the Exchange spot cheese market has on FMMOs milk pricing attract increased attention in light of the recent concerns about increasing milk price volatility and its effect on the dairy farm profitability. While the design of milk pricing within FMMOs has evolved over the last three decades, the effects of the Exchange spot cheese prices on FMMOs milk pricing have intensified. The research analyzes the conduct and performance of the Exchange spot cheese market during three FMMOs milk pricing regimes (Minnesota-Wisconsin price regime, Basic Formula Price and modern Multiple Component Pricing regime), with a particular focus on the Exchange spot cheese price behavior.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-10-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2019-0002","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43052664","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Discrimination in tipping creates concerns of inequity in service quality for restaurant operators (Brewster 2017). We use the National Household Food Acquisition and Purchase Survey data to conduct one of the very few nationally representative examinations of tipping behavior at US restaurants. We focus on differences in tipping behavior between groups with identifiable characteristics and investigate whether tipping differences between groups are robust to inclusion of a variety of controls. We investigate tipping at the extensive and intensive margins. In contrast to earlier studies, we find little evidence that tipping varies by race and gender.
{"title":"Restaurant Tipping Discrimination: Evidence from a Representative Sample of US Households","authors":"N. Jahan, Andrea Leschewski, David E. Davis","doi":"10.1515/jafio-2020-0007","DOIUrl":"https://doi.org/10.1515/jafio-2020-0007","url":null,"abstract":"Abstract Discrimination in tipping creates concerns of inequity in service quality for restaurant operators (Brewster 2017). We use the National Household Food Acquisition and Purchase Survey data to conduct one of the very few nationally representative examinations of tipping behavior at US restaurants. We focus on differences in tipping behavior between groups with identifiable characteristics and investigate whether tipping differences between groups are robust to inclusion of a variety of controls. We investigate tipping at the extensive and intensive margins. In contrast to earlier studies, we find little evidence that tipping varies by race and gender.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-10-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2020-0007","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43484855","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This paper assesses the price premiums and discounts for nine sparkling wine types or names commonly employed in Australia. Hedonic wine price functions are estimated for 10 years of wine releases to identify the specific price impact of different sparkling wine types or names, after controlling for other wine price determining factors. Results identify that important price premiums occur with the use of blanc de blancs and other less common sparkling reds. An important price discount is estimated for prosecco wines. Sparkling wine type interactions with climatic regional conditions and cellaring potential also point to some interesting results. The estimates may have potentially important implications for the strategic use of wine types and names by producers and for consumers in identifying good valued sparkling wines.
{"title":"Price Premiums and Discounts for Australian Sparkling Wines","authors":"E. Oczkowski","doi":"10.1515/jafio-2020-0027","DOIUrl":"https://doi.org/10.1515/jafio-2020-0027","url":null,"abstract":"Abstract This paper assesses the price premiums and discounts for nine sparkling wine types or names commonly employed in Australia. Hedonic wine price functions are estimated for 10 years of wine releases to identify the specific price impact of different sparkling wine types or names, after controlling for other wine price determining factors. Results identify that important price premiums occur with the use of blanc de blancs and other less common sparkling reds. An important price discount is estimated for prosecco wines. Sparkling wine type interactions with climatic regional conditions and cellaring potential also point to some interesting results. The estimates may have potentially important implications for the strategic use of wine types and names by producers and for consumers in identifying good valued sparkling wines.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-10-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2020-0027","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45919649","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The COVID-19 pandemic has exposed multiple vulnerabilities in the U.S. lettuce value chain. Restaurants and other food service operations closed almost overnight, leaving farmers with millions of dollars of excess lettuce. Because of the rigid value chain, farmers were forced to decide whether to harvest their crops for donation, try to find new customers, or plow their crops under. Close working and living conditions increase farmworkers’ risk of contracting COVID-19. Though many operations have implemented safety measures to protect farmworkers from COVID-19 in the short-term, larger structural changes must be made to provide workers with fair wages, access to health insurance and paid time off, and affordable housing. This review outlines the current value chain of lettuce in the U.S. and the disruptions caused by COVID-19, analyzes the impacts on farmworker health and safety, and offers recommendations for a more resilient lettuce value chain.
{"title":"COVID-19 and the US Lettuce Supply Chain: Implications for Farmworker Health and Safety and a Secure Supply","authors":"Ali Loker","doi":"10.1515/jafio-2020-0029","DOIUrl":"https://doi.org/10.1515/jafio-2020-0029","url":null,"abstract":"Abstract The COVID-19 pandemic has exposed multiple vulnerabilities in the U.S. lettuce value chain. Restaurants and other food service operations closed almost overnight, leaving farmers with millions of dollars of excess lettuce. Because of the rigid value chain, farmers were forced to decide whether to harvest their crops for donation, try to find new customers, or plow their crops under. Close working and living conditions increase farmworkers’ risk of contracting COVID-19. Though many operations have implemented safety measures to protect farmworkers from COVID-19 in the short-term, larger structural changes must be made to provide workers with fair wages, access to health insurance and paid time off, and affordable housing. This review outlines the current value chain of lettuce in the U.S. and the disruptions caused by COVID-19, analyzes the impacts on farmworker health and safety, and offers recommendations for a more resilient lettuce value chain.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2020-0029","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49048917","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The COVID-19 crisis created large economic losses for corn, ethanol, gasoline, and oil producers and refineries both in the United States and worldwide. We extend the theory used by Schmitz, A., C. B. Moss, and T. G. Schmitz. 2007. “Ethanol: No Free Lunch.” Journal of Agricultural & Food Industrial Organization 5 (2): 1–28 as a basis for empirical estimation of the effect of COVID-19. We estimate, within a welfare economic cost-benefit framework that, at a minimum, the producer cost in the United States for these four sectors totals $176.8 billion for 2020. For U.S. oil producers alone, the cost was $151 billion. When world oil is added, the costs are much higher, at $1055.8 billion. The total oil producer cost is $1.03 trillion, which is roughly 40 times the effect on U.S. corn, ethanol, and gasoline producers, and refineries. If the assumed unemployment effects from COVID-19 are taken into account, the total effect, including both producers and unemployed workers, is $212.2 billion, bringing the world total to $1266.9 billion.
{"title":"The Economic Effects of COVID-19 on the Producers of Ethanol, Corn, Gasoline, and Oil","authors":"A. Schmitz, C. Moss, T. Schmitz","doi":"10.1515/jafio-2020-0025","DOIUrl":"https://doi.org/10.1515/jafio-2020-0025","url":null,"abstract":"Abstract The COVID-19 crisis created large economic losses for corn, ethanol, gasoline, and oil producers and refineries both in the United States and worldwide. We extend the theory used by Schmitz, A., C. B. Moss, and T. G. Schmitz. 2007. “Ethanol: No Free Lunch.” Journal of Agricultural & Food Industrial Organization 5 (2): 1–28 as a basis for empirical estimation of the effect of COVID-19. We estimate, within a welfare economic cost-benefit framework that, at a minimum, the producer cost in the United States for these four sectors totals $176.8 billion for 2020. For U.S. oil producers alone, the cost was $151 billion. When world oil is added, the costs are much higher, at $1055.8 billion. The total oil producer cost is $1.03 trillion, which is roughly 40 times the effect on U.S. corn, ethanol, and gasoline producers, and refineries. If the assumed unemployment effects from COVID-19 are taken into account, the total effect, including both producers and unemployed workers, is $212.2 billion, bringing the world total to $1266.9 billion.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2020-0025","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44852524","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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