Progress 10/01/03 to 09/30/08
Outputs
OUTPUTS: This project most significant outputs included, 1. Direct impact on classroom content - As I have a majority appointment in teaching, and averaged teaching six sections per year during the duration of the project, research findings were immediately incorporated in course content. 2. Four graduate students successfully completed primary data collection and analysis as part of their graduate research, resulting in one PhD dissertation and three Masters theses. The PhD student was placed in a faculty position at the University of Maine Machias, one MS student continued with his graduate education, completing a PhD at Michigan State University, one MS student was immediately employed by the USDA FAS, and one MS student was immediately employed by a private sector consulting firm. 3. A set of publications and public presentations that reported empirical work and analysis that contributed to a broader understanding of the emerging trend towards product differentiation in what has traditionally been agricultural commodity markets. Activities A complete census of all organic citrus growers in order to collect production and market data was completed in 2004. A series of experimental auctions involving household primary grocery shoppers were conducted in three US cities to estimate willingness to pay for country of origin labeling on fresh apples and tomatoes. A survey of all USDA FAS field offices to collect data on market research practices and systems for dissemination of information to stakeholders and broader audiences. An on-line survey of university students asking about their awareness of and market choices relative to companies using cause-related marketing strategies. Nineteen presentations given at symposia and conferences to local, regional, national and international audiences. PARTICIPANTS: James A. Sterns, principle investigator Kevin Athearn, PhD student Leigh Ann Love, Master student Athur Mabiso, Master student R. Justin Taylor, Master Student TARGET AUDIENCES: Florida Tomato Committee and its grower members. Florida Department of Citrus and its grower members. Foreign Agricultural Service of the USDA, and its field offices. PROJECT MODIFICATIONS: Not relevant to this project.
Impacts
Change in Knowledge: As a result of primary data collection and analysis, the following techniques were learned and adopted by graduate students and the project investigator - choice experiments using a Vickery 5th-priced sealed bid experimental auction, content analysis adapted from techniques commonly used in Mass Communication research, conjoint analysis of data, and the use of on-line questionnaires. Change in Actions: 1. Research on the relationship between dieting fads and consumption patterns in orange juice directly informed and influenced marketing efforts developed by the Florida's Department of Citrus. 2. Research on consumers' willingness to pay for country of origin labeling directly affected marketing decisions, lobbying efforts and policy prescriptions promoted by the Florida Tomato Committee. 3. Research on market research practices and the dissemination of GAINS Reports in the USDA FAS led directly to significant revisions to and new system designs for tracking data on usage of GAINS reports within the FAS.
Publications
- Love, L.A., J. Sterns, T. Spreen and A. Wysocki. 2006. When Consumers Diet, Should Producers Care An Examination of Low-carb Dieting and U.S. Orange Juice Consumption, Journal of Food Distribution Research, 37(3): 68-76.
- Christou, A., R.Kilmer, J. Sterns and S. Feleke. 2005. Derived Demand for Disaggregated Cheese Products, Agribusiness: An International Journal, 21(1):1-16.
- Love, L. A., J. Sterns, T. Spreen and A. Wysocki. 2006. Changing Patterns of Orange Juice Consumption in the Southern United States, Journal of Agricultural and Applied Economics, 38(3): 659.
- Sterns, J. and T. Spreen. 2007. Industry Networks and Sustainable Competitive Advantages in Brazilian and U.S. Processed Citrus Supply Chains. Proc. 2007 International European Forum on Innovation and System Dynamics in Food Networks, Igls, Austria.
- Gunderson, M., A. Wysocki, and J. Sterns. 2008. A Functional Evaluation of Business Models in Fresh Produce in the United States, Chapter 2 in Postharvest Handling, Second Ed., W. Florkowski, R. Shewfelt, B. Brueckner, and S. Prussia (eds.), Elsevier Publishing
- Athearn, K. 2004. Efficacy of environmental labeling: an economic analysis with two examples from Florida agriculture. PhD dissertation
- Love, L. 2005. The diet culture phenomenon and its effect on the United States Orange Juice Industry. Master Thesis
- Mabiso, A. 2005. Estimating consumers' willingness-to-pay for country-of-origin labels in fresh apples and tomatoes: a double hurdle probit analysis of U.S. data using factor scores. Master Thesis
- Taylor, R. J. 2008. Market Analysis and Practice with Empirical Evidence from the USDA Foreign Agricultural Service. Master Thesis
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Progress 10/01/05 to 09/30/06
Outputs
During the third year of this project, I have continued with research, graduate student advising and professional presentations on the general area of product differentiation in agricultural and food markets. Two new master thesis research projects were initiated - one focusing on the effects of GMO-content in maize on trade flows and famine relief in southern Africa, and one focusing on the interaction of consumer demand and social causes linked to food products (e.g., fair trade coffee). Professional presentations included reports on empirical research on how product attributes (i.e., carbo-content) and consumer demand for food products (i.e., orange juice) are related, and disciplinary-focused presentations on underlying theoretic considerations for understanding and modeling markets for differentiated agricultural and food products. Efforts also have continued to synthesize empirical findings and existing theory, with the intent of developing a more comprehensive
framework for studying and modeling the evolution of product differentiation strategies emerging in agricultural and food markets.
Impacts
Researching product differentiation strategies is helping refine theory-based frameworks for predicting probable outcomes of specific strategies a firm might consider. Most published research focuses on describing market conditions and/or prescribing adoption strategies, whereas this project focuses on understanding when and why differentiation strategies can succeed for agribusiness firms seeking sustained competitiveness in global markets.
Publications
- Sterns, J. 2006. Interdependencies & Choices, Winners & Losers, and Understanding Why, An Agribusiness Perspective. A presentation as part of a selected organized symposium, American Ag. Econ. Assoc. Annual Meeting, Long Beach, CA, July 25, 2006.
- Sterns, J. 2006. Constraining and Enabling Product Differentiation, A call for Subject Matter Research. A presentation as part of a selected organized symposium, American Ag. Econ. Assoc. Annual Meeting, Long Beach, CA, July 24, 2006.
- Love, Leigh A., J. Sterns, T. Spreen and A. Wysocki. In print. When Consumers Diet, Do Producers Suffer? An Examination of Low-Carb Dieting and U.S. Orange Juince Consumption. J. of Food Dist. Research, (forthcoming Nov. 2006)
- Love, Leigh A., J. Sterns, T. Spreen and A. Wysocki. In print. Changing Patterns of Orange Juice Consumption in the Southern United States. Abstract of selected paper presentation, Southern Ag. Econ. Assoc. annual meetings, J. of Ag. and Applied Econ., forthcoming Dec. 2006.
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Progress 10/01/04 to 09/30/05
Outputs
During the second year of this project, I have focused on supporting three graduate students in their Masters Thesis research, completed research into the market potential of a value-added differentiated product as part of a USDA-funded feasibility study, and continued to disseminate research findings to various professional audiences. Two of the graduate students completed and successfully defended their theses. At this time, three drafts of journal articles from the two completed Masters theses are in the submission and review process with peer reviewed journals. These theses represent practical work of immediate relevance to key Florida agricultural industries, citrus and winter tomatoes. Both industries are facing evolving consumer preferences, greater differentiation of close product substitutes in the market place, and far more intense competition within their industries. The completed research will help these two industries as they seek to identify strategies
for increasing their competitiveness. The feasibility study examined the market potential of converting waste products (dairy manure and poultry litter) into a highly differentiated, value-added agricultural input (certified organic fertilizer). Given the current FL policy setting for land and water use, finding market outlets for animal wastes would offer consider relief for farming operations.
Impacts
Consumers are asking for products with differentiating characteristics, and this demand cannot be met with traditional commodity-based marketing. By investigating both consumer demand (diet trends, willingness to pay for country-of-origin labeling) and market supply (the economic feasibility of certified organic inputs), this project is helping producers develop competitive marketing strategies.
Publications
- Love, Leigh Ann, 2005. The diet culture phenomenon and its effect on the United States orange juice industry. A Masters thesis.
- Mabiso, Athur, 2005. Estimating consumers willingness-to-pay for country-of-origin labels in fresh apples and tomatoes: a double hurdle probit analysis of American data using factor scores. A Masters thesis.
- Estimating Consumers Willingness-To-Pay for Country-of-Origin Labels in Fresh Apples and Tomatoes: A Double-Hurdle Probit Analysis of American Data Using Factor Scores. 2005. By Athur Mabiso (presenter), James Sterns, Lisa House and Allen Wysocki. Selected Paper, AAEA Annual Meeting, Providence, RI, July 27.
- A Practical Guide to Market Assessment: A Synthesis of the Literature and Preliminary Findings from Foreign Agricultural Service Data. 2005. By R. Justin Taylor (presenter) and James Sterns. Selected Paper, AAEA Annual Meeting, Providence, RI, July 27.
- The Diet Culture Phenomenon and its Effect on the United States Juice Industry. 2005. By Leigh Ann Love (presenter) and James Sterns. Selected Paper, WERA-72 annual meeting, Las Vegas, NV, June 19-21.
- Consumer Valuation of Food Attributes. 2005. Moderator, Selected Paper Session, SAEA Annual Meetings, Little Rock, AR, February 6-8.
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Progress 10/01/03 to 09/30/04
Outputs
During the first year of this project, efforts have focused primarily on start-up activities. Four conference presentations were given on country-of-origin issues, three Masters theses have been initiated that address different dimensions of product differentiation strategies (one on consumer willingness to pay for country of origin labeling, one on the marketing implications and consequences of diet trends, and one on the interplay of product differentiation and economic viability of a proposed value-added enterprise), and a series of extension bulletins on product differentiation strategies in agricultural and food markets has been drafted, which includes draft versions of 25 extension bulletins. Anticipated outcomes for the coming year include the completion of the three Masters theses, along with one journal article per thesis, as well as the publication of the 25 bulletins, and one journal article submission based on a synthesis of the conference presentations.
Impacts
Preliminary information gathering on existing product differentiating strategies will be used as the basis for framing future data collection efforts in years 2, 3 and 4. Publishing this preliminary information in the form of extension bulletins provides an immediate outlet for initial findings, and makes these findings available to a broad base of Florida producers.
Publications
- COOL and Consumers Willingness to Pay, by James Sterns, Lisa House, John VanSickle and Allen Wysocki. Selected Paper presentation at the Southern Ag. Econ. Association annual meetings, Tulsa, OK, February 17, 2004.
- Inside the Politics of COOL legislation and debate in the U.S. Senate, by James Sterns and John VanSickle. Selected Paper presented during The Political Economy of Country of Origin Labeling and How did COOL Legislation get tabled for two years? An organized conference session for the WCC-72 annual meeting, Las Vegas, NV, June 7, 2004.
- The Fresh Produce Industry: Market power and getting your voice heard during the 2004 COOL debate, by Leigh Love, Allen Wysocki and James Sterns. Selected Paper presented during The Political Economy of Country of Origin Labeling and How did COOL Legislation get tabled for two years? An organized conference session for the WCC-72 annual meeting, Las Vegas, NV, June 7, 2004.
- The Beef Industry: Market power and getting your voice heard during the 2004 COOL debate, by Ann Davidson, James Sterns and Al Wysocki. Selected Paper presented during The Political Economy of Country of Origin Labeling and How did COOL Legislation get tabled for two years?An organized conference session for the WCC-72 annual meeting, Las Vegas, NV, June 7, 2004.
- Christou, Andreas, Richard Kilmer and James Sterns. Derived Demand for Disaggregated Cheese Products. Agribusiness: An International Journal (forthcoming January 2005)
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