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RESEARCH

Below are our recent and on-going research projects. The common focus in our team’s research and extension efforts is the linkage between marketing, management, and trade strategies of horticultural industries seeking to remain (or become) competitive. We include relevant policy decisions (national and international) that influence economic outcomes.

For each project, you will see a short description with links to papers and/or presentation materials. Please feel free to contact us if you would like more information.

Adoption of Good Agricultural Practices
Agriculture in the WTO
Risk Avoidance Mitigation Project
Global Tree Fruit Industries
Produce Wholesalers and Distribution
Invasive Species
Economics of Methyl Bromide Alternatives
Marketing Health Benefits
Michigan Produce Business Strategy
Risk Management Workshops
Domestic and International Trade Policies

Adoption of Good Agricultural Practices
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The national good agricultural practices (GAPs) project was conceived to reduce microbial food safety risks at the farm level. The project is funded by USDA-CSREES and the FDA and centered at Cornell University. Our part of the larger GAPs project has been to evaluate the on-farm costs of GAPs adoption and subsequent effects on the organization of an industry. A spatial equilibrium model of the North American fresh strawberry market has been developed for three distinct scenarios of GAPs adoption by producers. The model suggests that voluntary GAPs adoption by all fresh strawberry producers has little impact on the structure of the industry, but GAPs adoption with mandatory, and very expensive, third-party certification will limit or decrease market participation among small producers. Publications from this project include:

Agriculture in the WTO
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Five modules on global agricultural trade and the World Trade Organization’s Agreement on Agriculture are available for researchers and educators interested in learning more about global agricultural trade and trade policy. The modules were developed with support from the MSU Center for International Business Education and Research (CIBER). The modules were developed as educational tools for community colleges, first year students of agricultural policy, trade, or economics, or anyone interested in learning more about the topic. The modules are available online through the CIBER website at MSU. They were developed by Lourdes Martinez, Suzanne Thornsbury, and Mollie Woods.

Risk Avoidance Mitigation Project
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USDA RAMP (Risk Avoidance Mitigation Program) is a multi-state effort to develop reduced risk management strategies for tart cherry growers. The goal of these strategies is to help eliminate or minimize pesticide residues of concern in food, water and the environment. As part of a multi-disciplinary team that also includes horticulture, soils and entomology, our agricultural economics team is working to analyze the economic impacts of adopting reduced-risk options for tart cherry growers.


Global Tree Fruit Industries
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The Polish and Michigan tart cherry industries have continued to increase their share of global production over the past 25 years, producing nearly one-third of the world’s tart cherry crop in 2004. Poland’s share in this market is changing rapidly, having tripled their output over the past 25 years. The objective of our broad research in this area is to assess the growing importance of Polish competition and future profitability of Michigan tart cherry producers. Specific areas of research include:

Adoption of mechanical harvester
Trade Models
Input substitution (capital and labor)
Supply Chain analysis



Produce Wholesalers and Distribution
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Trade Practices in the U.S. Fresh Produce Wholesale Sector

Distribution of fresh produce relies heavily on the participation of market intermediaries which broadly includes importers, distributors, wholesalers, brokers, etc. Understanding trade practices among intermediaries is fundamental for farmers, importers and traders to access or maintain markets. The focus of this research is to describe the diversity of channels available and document differences in fresh produce trade practices among different participants in the fresh produce supply chain. A combination of descriptive, statistical, and econometric techniques is included in the analysis as appropriate for the types of data that is available.

Invasive Species
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With the rapid increase in global agricultural trade has also come rising concern over the potential for inadvertent transfer of invasive species. Invasive species are defined as organisms that are non-native, alien or exotic to the ecosystem under consideration and when introduced, may cause human health, environmental, or economic harm. To guard against such unintended consequences of trade, governments have historically enacted a range of policies. A systems approach is a multiple-step policy defined specifically to include two or more requirements that independently reduce risk. Despite increasing use, criteria to evaluate economic efficiency (i.e., the minimum number of protective steps that would achieve a desirable pest risk reduction with a minimum of trade distortion) have not been fully established. In this project we develop a framework for the economic evaluation and optimal design of SA and multi-stage SPS regulations.



Economics of Methyl Bromide Alternatives
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This project evaluates alternatives to methyl bromide in the production of herbaceous perennials and conifer seedlings. The final output of the project, will provide growers a series of choices based on technical facts, as well as an economic analysis of each alternative. The economic analysis is based on growers’ information gathered through a survey.

The methyl bromide project is a joint effort of the Departments of Entomology and of Agriculture Economics of Michigan State University in coordination with the Michigan Nursery and Landscape Association.

Marketing Health Benefits
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A new trend in food products is a focus on nutraceutical contents and how specific foods can help consumers in preventing an illness or helping with chronic pain. Tart cherries are one of the fruits with a higher quantity of antioxidants. In this project we develop a tart cherry product with all the appropriate standards, and a compatible packaging that guarantees the nutraceutical content, stability during shelf life. Marketing strategy includes over alternatives target consumers.



Michigan Produce Business Strategy
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The apple industry in Michigan is going through an adaptation stage due to changes in consumer trends and marketing strategies. Previous business strategies were primarily based on following the market leader: Washington. In this project we document the different past strategies and present possible new strategies that might be adopted.

An Apple Grower’s Perspective

The objective of this study was to evaluate members’ perceptions about the effectiveness of past Michigan Apple Committee (MAC) programs and opinions about future directions for MAC in order to provide input for Board decisions. In addition, this study provided members with some information about the broad programmatic areas that are covered under MAC guidelines. MAC is a commodity organization comprised of approximately 1000 apple growers in Michigan.

National and International Factors Influencing Michigan Pickle Markets

Michigan is the largest producer of pickling cucumber in the country. Like many agri-food industries, this processed product sector has gone through numerous changes in the past decade. Over the years, many factors have influenced production and marketing trends, and assessing their particular influence is difficult. However, using production and trade data is possible to infer some possible drivers of these trends.

Produce Markets and Global Competitiveness: Michigan Tart Cherry Processor Survey

Increasing integration with the global economy pressures tart cherry growers and processors to find new ways of competing among regions in the domestic market and producing regions in the world. In order to determine current situation and future positioning in the global market, we conducted several interviews with cherry processors to collect economic data and information regarding their current and future strategic planning. The goal of this project is to have an accurate description of the Michigan tart cherry industry which can be used to compare competitiveness of the industry and the different strategic issues that need to be addressed for future growth. MSU Agricultural Economics Staff Paper (under revision) PDF File

Risk Management Workshops
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“Positioning Your Fruit Business for the Future” Program

This program is intended to strengthen the knowledge, skills, and performance of Michigan fruit business managers. During the workshop, managers are encouraged to use modern business methods and techniques that are conceptually sound, science-based and economically practical, such as strategic planning, external and internal analysis, identification of critical success factors, value chain characteristics, mission statement. It also covers topics like dealing with stress, setting up goals for your company, problem solving steps, and tactics. The program is an MSU interdisciplinary effort, conducted throughout major fruit growing areas.



Domestic and International Trade Policies
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Trade policies, including tariff and non-tariff interventions, have an enormous impact on global movement of agricultural products. The impact of specific policies on food systems performance can be assessed through a variety of economic techniques. Our international trade research focuses primarily on limitations to exchange of horticultural products, including the international institutions and rules (i.e.: WTO, FTAA, NAFTA) that govern such policies. On the domestic side, our research focuses mostly on the effect of changes in the Farm Bill that can affect Michigan fresh fruit and vegetable industry.

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