| Registro completo |
| Provedor de dados: |
AgEcon
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| País: |
United States
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| Título: |
Optimal Market Contracting in the California Lettuce Industry
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| Autores: |
Donnelly, Kallie
Noel, Jay E.
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| Data: |
2006-05-31
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| Ano: |
2006
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| Palavras-chave: |
Marketing
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| Resumo: |
This study examines various market contracting combinations for Salinas Valley Head Lettuce Producers to determine the optimal combination. Currently 65% contracting is the industry standard. A stochastic farm simulation model is developed for a representative head lettuce producer in Salinas Valley, California. Five different market combinations are simulated: 40% contract-60% cash market, 50% contract-50% cash market, 65% contract-35% cash market, 80% contract-20% cash market, and 100% contracted production. Simulated Net Income, Cash Flow, and Net Present Value for 2006-2010 are analyzed to determine the optimal market combination that maximizes a produers net returns. Net Income and Cash Flow are analyzed in percent probabilities. To determine the stochastically dominate market combination for Net Present Value, Stochastic Efficiency with Respect to a Function (SERF) method is used. Results indicate 100% contracting is optimal. However, industry sources indicate its nearly impossible to contract 100% production.
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| Tipo: |
Conference Paper or Presentation
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| Idioma: |
Inglês
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| Identificador: |
21769
http://purl.umn.edu/21461
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| Editor: |
AgEcon Search
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| Relação: |
American Agricultural Economics Association>2006 Annual meeting, July 23-26, Long Beach, CA
Selected Paper
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| Formato: |
16
application/pdf
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