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OPTIMAL GRAZING PRESSURE UNDER OUTPUT PRICE AND PRODUCTION UNCERTAINTY WITH ALTERNATIVE FUNCTIONAL FORMS AgEcon
Kaitibie, Simeon; Nganje, William E.; Brorsen, B. Wade; Epplin, Francis M..
This study uses a Cox parametric bootstrap test to select between two specifications of the von Liebig hypothesis, a switching regression model and a non-linear mixed stochastic plateau function. The selected production function was used to determine optimal stocking density for dual-purpose winter wheat, under production and output price uncertainty. The switching regression approach was rejected in favor of the non-linear mixed stochastic plateau function. The relatively small difference in optimal stocking density between risk aversion and risk neutrality suggests that risk-aversion is much less important in explaining producer response to uncertainty than is nonlinearity in the production function.
Tipo: Conference Paper or Presentation Palavras-chave: Agribusiness.
Ano: 2003 URL: http://purl.umn.edu/22020
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Hysterisis in Food Safety Investments AgEcon
Richards, Timothy J.; Nganje, William E.; Acharya, Ram N..
Concerns regarding the safety and integrity of the fresh produce supply chain are becoming all too common in the media. In 2006, an outbreak of E. coli O157:H7 from farms in Central California sickened almost two hundred people and lead to the deaths of three. Estimated costs to the industry ranged from $100 per month to $200 million until spinach sales returned to normal. By some accounts, the spinach industry has yet to recover and may not for years to come. The incident, however, has lead to a host of initiatives from industry officials, legislators and fresh produce retailers to ensure the safety of fresh produce. The necessary technology and best practices knowledge exists, yet some growers have not made the investment required to ensure that such...
Tipo: Conference Paper or Presentation Palavras-chave: Agribusiness; Agricultural and Food Policy; Farm Management; Food Consumption/Nutrition/Food Safety; Industrial Organization.
Ano: 2008 URL: http://purl.umn.edu/49888
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A Comparison between Perception of Risk and Willingness to Serve Genetically Modified Foods AgEcon
Nganje, William E.; Wachenheim, Cheryl J.; Lesch, William C..
The dichotomy between perceptions of the acceptability of risk associated with genetically modified (GM) foods and willingness to consume GM foods is investigated. Results indicate that some consumers are willing to consume GM foods even though they may perceive such foods as somewhat unsafe, with determinants such as self-perceived knowledge about the availability of GM foods and altruistic motives having positive and significant effects on their consumption decisions. Efforts toward decreasing perception of risk and ultimately increasing acceptance of and demand for GM foods should address issues related to their altruistic characteristics and outrage.
Tipo: Journal Article Palavras-chave: Consumer/Household Economics; Risk and Uncertainty.
Ano: 2009 URL: http://purl.umn.edu/99792
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Food Safety and Defense Risks in the U.S.-Mexico Produce Chain AgEcon
Nganje, William E.; Richards, Timothy J.; Bravo, Jesus; Hu, Na; Kagan, Albert; Acharya, Ram N.; Edwards, Mark R..
Tipo: Journal Article Palavras-chave: Agribusiness; Food Consumption/Nutrition/Food Safety; I18; I28; L51.
Ano: 2009 URL: http://purl.umn.edu/94707
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OPERATIONAL EFFICIENCY OF A U.S./CANADIAN WHEAT POOL: A GAME THEORY ANALYSIS AgEcon
Nganje, William E.; Koo, Won W.; Park, Joon J.; Taylor, Richard D..
The problem of declining wheat prices and excess supply has been the subject of recent economic studies partly because it coincides with the Federal Agriculture Improvement and Reform (FAIR) Act of 1996, and partly because efforts to decrease supply domestically have led to increased imports from Canada. This paper develops a game theory optimization model of market efficiency and derives conditions under which voluntary pooling is sustained for U.S./Canadian durum and hard red spring wheat producers. Analysis reveals that U.S. and Canadian farmers can increase farm returns with efficiency gains from pooling and by internalizing benefits from grain blending and logistics. The model is used to analyze diverse factors affecting the sustainability of such...
Tipo: Working or Discussion Paper Palavras-chave: Voluntary pooling; Game theory; Efficiency gains; Durum and HRS wheat marketing; Crop Production/Industries; Marketing.
Ano: 2001 URL: http://purl.umn.edu/23661
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Consumer Willingness to Pay for Breads Marketed as "Low-Carbohydrate" AgEcon
Wachenheim, Cheryl J.; Nganje, William E.; Kaitibie, Simeon; Johnston, Gretchen.
Bread producers are taking advantage of healthy feeding habits by developing new "low carbohydrate" products to entice customers. These low carbohydrate breads are generally more expensive than conventional types. This study tests the hypothesis that consumers are willing to pay higher premium for "low carbohydrate" breads at various locations and markets. We use retail data in a hedonic pricing framework to estimate the premium paid for the "low carbohydrate" attribute of bread. Results show that the implicit price of the "low carbohydrate" attribute of bread ranges from about 0.06¢ to 1.1¢ per gram, reflecting the amount consumers are willing to pay above the price of conventional bread.
Tipo: Conference Paper or Presentation Palavras-chave: Low carbohydrate bread; Hedonic price; Willingness to pay; Institutional and Behavioral Economics; D12.
Ano: 2005 URL: http://purl.umn.edu/19428
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ECONOMIC IMPACTS OF FUSARIUM HEAD BLIGHT IN WHEAT AND BARLEY: 1998-2000 AgEcon
Nganje, William E.; Johnson, D. Demcey; Wilson, William W.; Leistritz, F. Larry; Bangsund, Dean A.; Tiapo, Napoleon M..
Fusarium Head Blight (FHB), commonly known as scab, has been a severe problem for wheat and barley producers since 1993. This study provides an update of economic losses suffered by wheat and barley producers in scab-affected regions in the United States. Emphasis is placed on estimating direct and secondary economic impacts of yield and price losses suffered by wheat and barley producers from 1998 to 2000. Nine states are included in the analysis for three wheat classes. Three of the nine states were also used for the analysis of malting and feed barley. The cumulative direct economic losses from FHB in hard red spring (HRS) wheat, soft red winter (SRW) wheat, durum wheat, and barley is estimated at $870 million from 1998 through 2000. The combined...
Tipo: Working or Discussion Paper Palavras-chave: Fusarium Head Blight; Scab; Vomitoxin; Crop losses; Wheat; Barley; Crop Production/Industries.
Ano: 2001 URL: http://purl.umn.edu/23515
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Food Risks and Type I & II Errors AgEcon
Nganje, William E.; Skilton, Paul F..
The IFAMR is published by (IFAMA) the International Food and Agribusiness Management Review. www.ifama.org
Tipo: Article Palavras-chave: Food safety; Food defense; Error based disruption; Control oriented supply networks; Agribusiness; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Risk and Uncertainty; Q130.
Ano: 2011 URL: http://purl.umn.edu/119977
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ECONOMIC IMPACT OF SCAB WITH ALTERNATIVE RISK MANAGEMENT STRATEGY: THE CASE OF CROP QUALITY INSURANCE IN BARLEY AgEcon
Nganje, William E.; Tiapo, Napoleon M.; Wilson, William W..
Managing quality risks, especially grain quality, has been a challenge facing farmers, grain merchandisers, and policymakers for many years. With the advent of genetically modified organisms (GMOs), food safety, and identity preservation, this is even more challenging today. In this paper, an equilibrium crop insurance model was developed and used to analyze the impact of quality risks on equilibrium coverage levels and risk premiums that suppliers of insurance and barley producers would be willing to provide when yield and revenue insurance instruments explicitly incorporate quality risks. The asking price concept and sensitivity analysis were used to evaluate farmers' behavior after they purchase crop quality insurance and to provide guidance and...
Tipo: Working or Discussion Paper Palavras-chave: Crop insurance; Equilibrium coverage levels; Fusarium Head Blight; Premium rates; Quality risks; Risk aversion; Crop Production/Industries.
Ano: 2002 URL: http://purl.umn.edu/23641
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Identifying Market Preferences for High Selenium Beef AgEcon
Hovde, Scott C.; Wachenheim, Cheryl J.; Hearne, Robert R.; Nganje, William E..
Selenium is an element found in relatively high concentrations in crops and livestock raised on high-selenium soils located in North and South Dakota. Evidence suggests that a high-selenium diet such as would be obtained from consuming these products can reduce the risk of certain cancers. The region's livestock and grain producers are exploring potential high-selenium product marketing opportunities. A choice experiment was conducted to identify preferred attributes for a high-selenium beef product and the characteristics of potential market segments. In a national survey, participants chose between different levels of health claim approval and research, prices, and selenium origin. A multinomial logit regression model was estimated. Labeling...
Tipo: Report Palavras-chave: Choice Experiment; FDA approval; Functional Foods; Health Claim; Labeling; Selenium; Consumer/Household Economics; Livestock Production/Industries.
Ano: 2007 URL: http://purl.umn.edu/7633
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Public Goods, Hysteresis, and Underinvestment in Food Safety AgEcon
Richards, Timothy J.; Nganje, William E.; Acharya, Ram N..
Despite the economic damage inflicted by a foodborne disease outbreak, firms at all points in the supply chain appear to be reluctant to invest in the necessary food safety technologies and practices. We argue that these investments are subject to both hysteretic and public good effects, and construct a theoretical model of food safety investment, calibrated to describe the 2006 E. coli outbreak in California spinach. Both effects are found to induce delays in food safety investments, but the public good effect dominates. We suggest a number of policy options that improve incentives to contribute to the public good.
Tipo: Journal Article Palavras-chave: Food safety; Hysteresis; Investment; Public goods; Real options; Simulation; Food Security and Poverty.
Ano: 2009 URL: http://purl.umn.edu/57627
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PRICE VARIABILITY AND FINANCIAL RISK FOR SUGAR BEET GROWERS AgEcon
Nganje, William E.; Stoltman, Gwen.
This paper develops a portfolio framework to characterize and analyze the impact of price risk faced by sugar beet growers in the Red River Valley and derives implications for capital markets. Other sources of risk incorporated in the analysis are yields and production cost. Results from stochastic simulation analysis reveal that sugar beet growers incur significant price and financial risk. The hypothesis that the loan rate for sugar truncates the distribution of net returns and protects growers against declining beets prices was not validated.
Tipo: Conference Paper or Presentation Palavras-chave: Financial risk; Total risk; Price variability; Stochastic simulation of net return; Default risk; Agricultural Finance; Crop Production/Industries.
Ano: 2000 URL: http://purl.umn.edu/36493
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Food Recalls and Food Safety Perceptions: The September 2006 Spinach Recall Case AgEcon
Onyango, Benjamin M.; Miljkovic, Dragan; Hallman, William K.; Nganje, William E.; Condry, Sarah C.; Cuite, Cara L..
This paper examines public perceptions on food safety particularly relating to spinach, which was subject of countrywide recall in 2006. Results indicate that food safety perceptions may be driven by public trust/confidence in institutions whose activities may be directly or indirectly related to food safety. The results further suggest that food safety perceptions may also be related to the type of the product; for example, the public perceives frozen spinach differently from bagged fresh spinach. Additionally, the results show that low levels of objective knowledge about food pathogens and the resulting illnesses have implications on overall food safety. Results further indicate that females and Caucasians perceived the four types of spinach as safe for...
Tipo: Conference Paper or Presentation Palavras-chave: Food Consumption/Nutrition/Food Safety.
Ano: 2007 URL: http://purl.umn.edu/9679
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VALUATION OF NEW SPRING WHEAT VARIETIES: TRADEOFFS FOR GROWERS AND END-USERS (SUMMARY) AgEcon
Dahl, Bruce L.; Wilson, William W.; Johnson, D. Demcey; Nganje, William E..
Variety release decisions involve a number of tradeoffs, usually between grower and end-user characteristics as well as significant uncertainties about agronomic, quality, and economic variables. In this study, methodologies were developed to value tradeoffs for grower and end-user characteristics for wheat. The models capture effects of variability in agronomic, quality, and economic variables. The models were applied for three experimental varieties which have since been released and for two hypothetical varieties. Results indicate two of the experimental varieties provide improvements in grower and end-use value over most of the incumbents. Comparison of a risk adjusted portfolio model consisting of characteristics of end-use and grower values...
Tipo: Working or Discussion Paper Palavras-chave: Variety Development; Grower Value; End-user Value; North Dakota; Tradeoffs; Stochastic Dominance; Portfolio Value; Crop Production/Industries.
Ano: 2001 URL: http://purl.umn.edu/23590
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State-Branded Programs and Consumer Preference for Locally Grown Produce AgEcon
Nganje, William E.; Hughner, Renee Shaw; Lee, Nicholas E..
Revitalization of state brands is deemed important to several constituencies. Stated preference with choice experiment methods were used to elicit consumer preferences for two locally grown products: spinach, which has had a well-publicized food safety incidence, and carrots, which have had no such incidence in recent history. A full factorial design was used to implement the choice experiment, with each commodity having four identical attributes varying at different levels. Findings reveal that consumers are willing to pay a premium for locally grown spinach marked with the Arizona Grown label over locally grown spinach that was not labeled. This premium was higher than the premium that would be paid for state-branded carrots. This difference highlights...
Tipo: Journal Article Palavras-chave: State-branded produce; Certification; Food safety; Traceability; Discrete choice models; Agribusiness; Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; Marketing.
Ano: 2011 URL: http://purl.umn.edu/107472
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FOOD SAFETY REGULATION, PRODUCT PRICING, AND PROFITABILITY: THE CASE OF HACCP AgEcon
Nganje, William E.; Mazzocco, Michael A.; McKeith, Floyd K..
This paper assesses the impact of mandatory Hazard Analysis of Critical Control Points (HACCP) regulation on output price for small meat processors and packers and evaluates implications for firm-level profitability. The importance of HACCP regulation and pricing is an issue that deserves in-depth analysis because of its implications for the survival of small firms in the meat industry. To investigate this issue a survey was sent to meat processors and packers in the United States to collect data on HACCP expenses, output price before and after HACCP implementation, and inputs prices and quantities. Although output price did not increase significantly to compensate for HACCP expenses, analysis of the translog profit function revealed that small firms were...
Tipo: Working or Discussion Paper Palavras-chave: HACCP; Product pricing; Profitability; Translog profit function; U.S. meat processing industry; Food Consumption/Nutrition/Food Safety.
Ano: 1999 URL: http://purl.umn.edu/23077
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Food Recalls and Food Safety Perceptions: The September 2006 Spinach Recall Case AgEcon
Onyango, Benjamin M.; Miljkovic, Dragan; Hallman, William K.; Nganje, William E.; Condry, Sarah C.; Cuite, Cara L..
This study analyzes public perceptions of food safety using a national survey conducted in November 2006, soon after the September 2006 nationwide spinach recall. We explore relationships between peoples’ perceived risks of food contamination (spinach in this case) and their trust in the institutions in charge of safeguarding/ensuring safety. Finally, we examine relationships between individual observance of basic good food handling practices and food safety. Trust in institutions through which food passes and regulatory agencies were shown to be critical in determining food safety perceptions. For example, confidence in the USDA as a regulatory agent was viewed positively, and hence contributed toward viewing the four types of spinach as safe for...
Tipo: Journal Article Palavras-chave: Food recalls; Food safety; Public perceptions; Spinach; Agribusiness; Food Consumption/Nutrition/Food Safety.
Ano: 2008 URL: http://purl.umn.edu/90563
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Offsetting Behavior and the Benefits of Food Safety Policies AgEcon
Nganje, William E.; Miljkovic, Dragan; Voica, Daniel; Onyango, Benjamin M..
The net effect of food policies, viewed in terms of reduction of foodborne illness, death and food related diseases from obesity, may sometimes be much smaller than the predicted effect because of failure to account for offsetting behavior (OB). Theoretical and empirical models are developed and tested to determine the presence of dominant or partial OB in food safety policies. Results reveal that information that affects outrage and other determinants of risk perception will cause consumers to relax their vigilance in response to the food safety policy. This behavioral anomaly indicates a serious deviation from rational choice and may help explain the growing gap between the decrease in pathogen levels recorded after hazard analysis of critical control...
Tipo: Report Palavras-chave: Offsetting behavior; Food safety policies; Risk perception; Discrete choice models; Food Consumption/Nutrition/Food Safety.
Ano: 2007 URL: http://purl.umn.edu/7637
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OPTIMAL STOCKING DENSITY AND FOOD SAFETY RISKS IN STEER PRODUCTION ENTERPRISE AgEcon
Nganje, William E.; Kaitibie, Simeon; Brorsen, B. Wade; Epplin, Francis M..
Reasonably high stocking densities generally lead to high profit for steer grazing enterprises. However, higher stocking densities result in high microbial counts, creating food safety concerns, especially with the advent of BSE in recent years. This study explores the impact of production and output price uncertainty on optimal stocking density when microbial shedding presents a food safety problem. The optimal grazing pressure is based on the expected utility maximization framework, and a stochastic linear response and plateau production function. Results show that uncertainty and food safety problems lead to lower stocking density, and lower profits. However, reducing the potential incidence of microbial shedding guarantees future profits to the...
Tipo: Conference Paper or Presentation Palavras-chave: Food Consumption/Nutrition/Food Safety; Production Economics.
Ano: 2003 URL: http://purl.umn.edu/16602
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Comparison of Perception of Risk and Willingness to Consume GM Foods AgEcon
Wachenheim, Cheryl J.; Nganje, William E.; Lesch, William C..
The dichotomy between perceptions of the acceptability of risk associated with genetically modified (GM) foods and willingness to consume GM foods is investigated. Results indicate that some consumers are willing to consume GM foods even though they may perceive such foods as somewhat unsafe, with determinants such as self-perceived knowledge about the availability of GM foods and altruistic motives having positive and significant impacts on their consumption decision. Efforts towards decreasing perceptions of risk and ultimately increasing acceptance of, and demand for, GM foods should address issues related to their altruistic characteristics and outrage.
Tipo: Report Palavras-chave: Genetic modified foods; Multinomial logit; Risk perception; Willingness to consume GM foods; Food Consumption/Nutrition/Food Safety; Q19; D12.
Ano: 2008 URL: http://purl.umn.edu/6876
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