Vintage production approach to perennial crop supply: An application to tea in major producing countries

Abstract

New planting and replanting decisions play a key role in determining the long-run response of perennial producers and in accounting for observed differences in the patterns of agricultural development. In this paper a framework based on the vintage production model is proposed, which links the producer's short-run and long-run decisions. The empirical applications to tea production in Kenya, India and Sri Lanka illustrate the diversity of mechanisms determining the supply responses.