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This study evaluates the differences between the Exact Affine Stone Index (EASI) demand model estimates obtained using Consumer Expenditure Survey (CEX) data and Nielsen Homescan data. Results indicated that elasticities obtained from CEX and Homescan data-based demand models differ not only statistically but also economically. Own-price elasticities obtained from the CEX data-based demand model were more inelastic than those obtained from the demand model estimated using Homescan data. Further, differences between expenditure elasticities did not follow a specific pattern. We found evidence suggesting that the main source of differences is the price index used for the estimation.

The main objective of this study was to develop and test effective messaging and marketing efforts for the Appalachian Grown™ regional branding program. The study included the following activities: 1) A pilot consumer survey to design and evaluate messages and promotional materials to be used in the marketing campaign, 2) Pre and post intervention consumer surveys, and 3) Implementation of the marketing campaign in three stores in the region. The evaluation of the impact of the marketing efforts utilized contingent valuation methods. Our results indicate that consumers’ willingness to pay may be positively impacted by the implementation of in-store local food marketing campaigns. We also identified criteria of trustworthiness, including information about farm name and location, which local food marketing campaigns should consider implementing in the future.

This study analyzes U.S. consumers' demand for eight food commodity groups: Cereal and Bakery goods, Meat and Eggs, Dairy, Fruits and Vegetables, Nonalcoholic Beverages, Fats and Oils, Sugar and Sweets, and Miscellaneous goods. The data used in this study is Nielsen Homescan data for the period 2002-2006. Three different levels of temporal aggregation, biweekly, monthly and yearly were considered. We conclude that the data collection period does affect the value of elasticities obtained from estimated food demand models. Moreover, larger biases in the estimated elasticities are likely to be present even when using econometric methods currently recommended to account for this problem.

MarketMaker is one of the most extensive collections of electronic searchable food industry related data engines in the country with over 17,500 profiles of food related enterprises, including more than 7,600 agricultural producers and 1,295 farmers markets. This study examined the impact of MarketMaker on participating farmers’ markets. Our findings indicate that about half of the farmers markets have experienced benefits from their participation in the form of new contacts, new customers and vendors, and increase in sales. Through the analysis of factors that affect the increase in farmers’ markets sales due to MarketMaker we identified that the components needed for the more successful use of MarketMaker include an established MarketMaker program, an established farmers’ market and an active user-manager.

El Salvador is one of the smallest and most populated countries in Latin American with approximately 6.3 million people and a population density of 301 habitants/km2. The country is considered to be food and nutrition insecure because of its vulnerability to natural disasters, high dependence on remittances and food imports, low economic growth and a poverty rate of 34.5%. Despite the food insecurity status of El Salvador, to the best of our knowledge no one has estimate a food demand system that can be used to evaluate how price and income shocks affect food security in the country. We use household food expenditure data from the 2013 Multiple Purposes Household Surveys (EHPM) and additional information on prices to estimate an Exact Affine Stone Index (EASI) food demand system and evaluate the impact of price and income shocks as well as potential food policies on food demand and food insecurity. Our preliminary results show inelastic price demand for all food groups except meats (which includes beef, pork, poultry and eggs) and non-alcoholic beverages. The most inelastic demand was observed in the food group of cereals that includes, corn, rice, and beans which are staples in the Salvadorian diet.

The main objective of this study was to develop and test effective messaging and marketing efforts for the Appalachian Grown™ regional branding program. The evaluation of the impact of the marketing efforts utilizes contingent valuation (CV) methods. CV methods allowed us to elicit consumers’ preferences before and after the marketing campaign for Appalachian grown products and measure the change in consumer willingness to pay (WTP) for this attribute. We found evidence of a statically significant positive effect in one of the two stores where the campaign was implemented. In the store where the campaign was found to have a positive impact, the marketing campaign was found to increase consumers’ willingness to pay for locally grown products by about 4%. Our results indicate that consumers’ willingness to pay may be positively impacted by the implementation of in-store local food marketing campaigns.

This study investigates the possibility of using local food banks as a distributor in the local food supply chain. A mixed logit model is used to estimate the price premium consumers are willing to pay at retail outlets for locally grown products, if consumers have knowledge that a portion of the purchase price will be used as a donation to support local food banks. Estimates reveal that average households are willing to pay 11.68% ($0.17/lb) more for locally grown produce relative to non-locally grown, and 10.75% ($0.33/lb) more for locally produced animal products. When the locally grown product attribute is combined with a food bank donation the WTP premium increases to 22.33% ($0.33/lb) for produce and 20.50% ($0.64/lb) for animal products. Consumers are only willing to pay a small price premium for products that contain the donation attribute but are not locally grown. However, a strong complimentary relationship was found between the local and donation attribute which suggest consumers have a stronger preference to donate when purchasing locally grown products than when purchasing nonlocal products.

The main objective of this study was to analyze the effect of advertising on social welfare in a perfectly competitive market where the level of advertising is chosen by a social planner. The theoretical model revealed that social planner sponsored advertising that increases the equilibrium price of the advertised good can increase society’s welfare if the effect of advertising in consumers’ utility is higher than the consumer welfare reducing price effect (producer welfare is increased by the same amount as the reduction in consumer welfare). The empirical illustration focuses on the U.S. state of South Carolina “buy local” food products campaign. The findings suggest that this government sponsored advertising campaign increases total welfare.

This paper analyzes the effect of labeling information on U.S. farmers’ herbicide choices. Herbicide choices reported by U.S. soybean farmers are used to estimate farmer preferences for different herbicide attributes using a mixed logit model. Our results indicate that statements displayed on pesticide labels regarding risks to human health and the environment are important components in herbicide selection. We find that farmers are willing to pay an average of $27 per acre to avoid using an herbicide labeled with the word “Warning” and $38 per acre to avoid using an herbicide labeled with the word “Danger.”

Lewbel (1989) developed an approach for the construction of household level commodity price indices (Stone-Lewbel prices) using only budget shares and CPIs of the goods comprising the commodity groups. In this study, we consider three alternative CPIs for the construction of SL prices and the estimation of a demand system. The three CPIs consider are: monthly, quarterly and unity. Where the unity CPI is used to simulate a scenario where no price index information is available. Elasticities and marginal effect estimates from the demand models proved to be robust to the alternative CPIs considered in this study (even to the absence of one).

MarketMaker is one of the most extensive collections of electronic searchable food industry-related data engines in the country with over 17,500 profiles, including over 7,600 agricultural producers. This article summarizes the results of a survey that assesses the impact of MarketMaker on agricultural producers registered on the website. Results indicate that, by participating on MarketMaker, producers' annual sales have increased by about $121. The number of contacts received, new customers gained, and increased annual sales due to participation in the site are positively related to self-registration on the MarketMaker site, time since registration, and monthly time devoted to the website .

The general objective of this study was to analyze the effect of labeling information on farmers’ herbicide choice. Herbicide choices made by farmers were used to estimate their willingness to pay for different herbicide attributes. Estimation results indicate that human health and environmental statements displayed on pesticide labels (which reflect higher level of risk) are important components in herbicide selection. For example, it is estimated that farmers are willing to pay, on average, $27 per acre to avoid using an herbicide with the word “Warning” and $38 per acre to avoid using an herbicide with the word “Danger.”

This study evaluated the impact of the South Carolina (SC) agricultural promotion campaign after its first season. Analysis of the survey data revealed that consumer demand for state grown produce has increased by 3.4% which could result in an increase in producer surplus of $2.9 million. Since the SC Department of Agriculture invested $500,000 in the promotion program in 2007, this figure indicates a benefit-cost ratio of 5.8.

The objective of this study is to evaluate South Carolina (SC) consumers’ willingness to pay for “SC grown” products. Results indicate that consumers in SC are willing to pay an average premium of 27% for local produce and 23% for local animal products. Premiums for local products are influenced by age, gender, and income.

This paper analyzes the European Union (EU) import demand for in-shell peanuts from three sources: the United States, China, and the rest of the world. We find that peanuts from different sources are differentiated by EU consumers. The expenditure elasticity is elastic for U.S. in-shell peanuts, which is associated with their higher quality. The conditional own price elasticities are more elastic for U.S. and Chinese in-shell peanuts. These findings have at least two implications. First, U.S. producers and exporters should direct efforts to ensure that in-shell peanuts exported to the EU are of the best possible quality, and, second, promotion efforts should stress the quality of U.S peanuts as an advertising tool.