Source: NEW MEXICO STATE UNIVERSITY submitted to NRP
EXPLORING OPPORTUNITIES FOR AGRIBUSINESS FIRMS TO ENHANCE LONG-TERM PROFITABILITY
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0220826
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Oct 1, 2009
Project End Date
Sep 30, 2014
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
NEW MEXICO STATE UNIVERSITY
1620 STANDLEY DR ACADEMIC RESH A RM 110
LAS CRUCES,NM 88003-1239
Performing Department
Agri Economics & Agribusiness
Non Technical Summary
While food costs have fallen, factors such as increasing consolidation of the food industry, rising labor and other input costs, changing consumer taste and preference, and expanding imports are challenging the long-term profitability of farming sector in general and small growers in particular. As a result, domestic production of labor intensive crops such as chile, which is one of the important crops grown mostly by small growers in New Mexico, is dwindling. In a dynamic global market, firms that are capable of offering innovative products that satisfy ever changing consumer taste and preferences at reasonable prices are more likely to prevail. With the increasing incidence of globalization, food quality, food safety, and the integrity of its supply chain has become a major concern. Food safety concerns have led to many initiatives from growers, food processors and distributors, retailers, and legislators to ensure the safety and integrity of domestic food supply chain. it is important to understand how factors such as rising food production costs, expanding imports, and changing consumer taste and preferences affect consumer demand for domestic food products and the long-term profitability of agribusiness firms.
Animal Health Component
(N/A)
Research Effort Categories
Basic
(N/A)
Applied
(N/A)
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
60461103010100%
Goals / Objectives
The primary objective of this proposed research is to evaluate the impact of factors such as improved technology, increasing trade volume, and changing consumer taste and preferences on food products. Some of the issues this research project may focus on include: a) the role of technology on firm performance, b) the impact of expanding imports on domestic enterprises (such as chile and pecans) and c) the possibility of using product attributes such as price and region of production to promote locally grown foods.
Project Methods
Both primary as well as secondary data will be collected and used in the study. Statistical models will be developed for each issue addressed in the study. Details and formulas can be found in the proposal outline.

Progress 10/01/09 to 09/30/14

Outputs
Target Audience: Professionals attending the conference where the papers were presented, NMSU students, and local growers were the target audience. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? The research activities initiated through this project has provided an opportunity to present papers in national and internations conferences, train 1 undergraduate and two graduate students. How have the results been disseminated to communities of interest? The results were disseminated by presenting in three professional organizations (International Food and Agribusiness Management Association, American Society for Horticultural Science, and Western Social Sciences Association) and two state institutional audience (NMSU and Growers in Four Corners Region). What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Following nine research presentations were made during 2013/2014: Lombard, K.A., K. McCarver, F.J. Thomas, R.N. Acharya, and T. Bates. 2014. "What's Hop'pening in Northwest New Mexico? Hops (Humulus Iupulus) Trails Summary 2009 to 2014" Poster presented at the Annual Meeting of the American Society for Horticultural Science, Orlando, Florida, July 28-31, 2014. Bernal, A. and R.N Acharya. 2014. "Is Geographically Weighted Regression useful for understanding diabetes in the US?" Presented at the 24th Annual World Forum and Symposium of the International Food and Agribusiness Management Association, Cape Town, South Africa, June 16-19, 2014. Bernal, A. and R.N Acharya. 2014. "The Food Retail Market for Dense SNAP Areas." Presented at the annual meeting of Western Social Sciences Association, Albuquerque, NM, April 2-5, 2014. Acharya, R.N. 2013. "Economic Prospect of Producing Hops in New Mexico." Invited Speaker at a regional conference on WHAT's HOP'N: A Symposium on Hops (Humulus sp.) Production and Marketing in the Four Corners Region and New Mexico, Farmington, NM, July 12-13, 2013. Acharya, R.N. 2013. "Rising Imports and Long Term Sustainability of the U.S. Pecan Industry." Presented at the 23nd Annual World Forum and Symposium of the International Food and Agribusiness Management Association, Atlanta, Georgia, June 16-20, 2013. Bernal, A. and R.N. Acharya. 2013. "Wind as Renewable Energy Option for Rural Southwest." Presented at the 23nd Annual World Forum and Symposium of the International Food and Agribusiness Management Association, Atlanta, Georgia, June 16-20, 2013. Hernandez, H. and R.N. Acharya. 2013. "Export Demand for Natural Insecticide (Pyrethrum) Produced in Kenya." Presented at the 23nd Annual World Forum and Symposium of the International Food and Agribusiness Management Association, Atlanta, Georgia, June 16-20, 2013. Hernandez, H. and R.N. Acharya. 2013. "Pyrethrum Production and Marketing Challenges and Opportunities for Smallholder Farmers in Kenya." Poster presented at the 2013 Graduate Research and Arts Symposium, NMSU, March 12, 2013. Hernandez, H. and R.N. Acharya. 2013. "Pyrethrum Production in Kenya." Presented at the annual meeting of the American Society of Agricultural and Biological Engineers, NM Section, Las Cruces, April 12, 2013.

Publications

  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Lillywhite, J.M., J.E. Simonsen, and R.N. Acharya. (2013). "Designing a Better Fair: How Important Are the Animals?" Journal of Convention and Event Tourism 14(3):217-235.


Progress 01/01/13 to 09/30/13

Outputs
Target Audience: The project research effort has resulted in three presentations in regional and international professional conferences, consultations with growers and food processors, and project reports. In particular, the results of these research efforts and presentations are expected to reach current and prospective hops growers in New Mexico and the Four Corners region, brewing industry, organic peanut growers, and pecan growers. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? The hops project resulted in consultations with hops growers and NM brewers and a meeting was held in Albuquerque on December 21. The research on natural insecticide trade (pyrethrum) is used to educate and train graduate students. The pecan project is expected to provide helpful information to the US pecan industry stakeholders. How have the results been disseminated to communities of interest? The project results have been disseminated through stakeholders meeting, student training, presentations in professional meetings, and academic journal publications. What do you plan to do during the next reporting period to accomplish the goals? Continue working on completing the project activities: consultations with stakeholders, collect data through primary and secondary sources, develop manuscripts on issues related to NM agricultural products such as pecan and chile papers.

Impacts
What was accomplished under these goals? The research efforts made through this project has resulted in one journal article, two project reports (organic peanut farming in the Southwest and hops production in New Mexico), and three presentaions (hops, natural insecticides, and pecan trade). The references for presentations are as follows: 1. Acharya, R.N. 2013. “Economic Prospect of Producing Hops in New Mexico.” Invited Speaker at a regional conference on WHAT’s HOP’N: A Symposium on Hops (Humulus sp.) Production and Marketing in the Four Corners Region and New Mexico, Farmington, NM, July 12-13, 2013. 2. Acharya, R.N. 2013. “Rising Imports and Long Term Sustainability of the U.S. Pecan Industry.” Presented at the 23nd Annual World Forum and Symposium of the International Food and Agribusiness Management Association, Atlanta, Georgia, June 16-20, 2013. 3. Hernandez, H. and R.N. Acharya. 2013. “Export Demand for Natural Insecticide (Pyrethrum) Produced in Kenya.” Presented at the 23nd Annual World Forum and Symposium of the International Food and Agribusiness Management Association, Atlanta, Georgia, June 16-20, 2013.

Publications

  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Lillywhite, J.M., J.E. Simonsen, and R.N. Acharya. (2013). "Designing a Better Fair: How Important Are the Animals?" Journal of Convention and Event Tourism 14(3):217-235.


Progress 01/01/12 to 12/31/12

Outputs
OUTPUTS: This research effort has resulted in two presentations in national and international professional meetings and three paper drafts. The primary issues examined in these studies include impact of trade and technology on domestic pecan industry, consumer preference for food products, and factors affecting attendance in agricultural fairs. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
The proposed studies are expected to provide better understanding on how rising trade volume, recent technological innovations, and changing market structure impact U.S. food industry. For instance, one of the presentations (accepted recently) evaluates the impact of rising imports on US pecan industry.

Publications

  • No publications reported this period


Progress 01/01/11 to 12/31/11

Outputs
OUTPUTS: This research effort has resulted in three presentations in national and international professional meetings and two referred journal publications. The primary issues examined in these studies include impact of trade and technology on domestic chile industry, consumer preference for food products, and factors affecting attendance in agricultural fairs. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
The proposed studies are expected to provide better understanding on how rising trade volume, recent technological innovations, and changing market structure impact U.S. food industry. For instance, Acharya, Kinnucan, and Caudill (2010) developed a new test that can be used to examine whether firms enjoy market power and if they do whether they change their pricing behavior as market conditions change. The model is tested using data from U.S. fresh strawberry market and the results show that buyers/retailers are more apt to exercise market power during peak harvesting season when farm supplies are abundant than when they are scarce. As a result, strawberry growers are losing about 6% of their gross revenue.

Publications

  • Richards, T. J., Acharya, R., Molina, I. 2011. Retail and Wholesale Market Power in Organic Apples. Agribusiness, 27(1), 62-81.


Progress 01/01/10 to 12/31/10

Outputs
OUTPUTS: This research effort has resulted in five presentations in national and international professional meetings and two referred journal publications. The primary issues examined in these studies include impact of trade and technology on domestic chile industry, consumer preference for food products, and factors affecting attendance in agricultural fairs. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Research on issues listed above are expected to provide better understanding on how rising trade volume, recent technological innovations, and changing market structure impact U.S. food industry. For instance, Acharya, Kinnucan, and Caudill (2010) developed a new test that can be used to examine whether firms enjoy market power and if they do whether they change their pricing behavior as market conditions change. The model is tested using data from U.S. fresh strawberry market and the results show that buyers/retailers are more apt to exercise market power during peak harvesting season when farm supplies are abundant than when they are scarce. As a result, strawberry growers are losing about 6% of their gross revenue.

Publications

  • No publications reported this period